KickCity WP 5.3 - · PDF fileDecentralized Event ... system according to Reed will have an...

2017 © KickCity, Inc. [email protected]

Decentralized Event Management & Marketing Platform on Blockchain

Whitepaper

Abstract A decentralized peer-to-peer protocol for event marketing which rewards its participants would

allow for more effective & economic event marketing without going through a centralized

advertising platform/ institution. The nature of events (i.e. concerts) entails that people attend in

groups. A reward based P2P marketing protocol will allow for the fastest mass adoption of

crypto-tokens as more connections will be formed faster according to David P. Reed’s Law

(2N−N−1).

Event organizers need results. Unfortunately, 73% of event vendors are victims of ineffective

online marketing while, 26.4% do not know which online tools to use. We propose a model

where the event organizer, user promoting the event and attendee is rewarded while smart

contract facilitates instantaneous, transparent and fair distribution of reward. Such a value

system according to Reed will have an exponential growth of connections.

Version 5.4 kickcity.io

© 2017 KickCity, Inc. 2

Table of Contents

Introduction 3

KickCity Protocol 4

Use Case 5

Pool Parameters 7

Level-1 Marketing 7

Multi-Level-1 Marketing 8

Reed’s Law & Network Effect 9

Purchase of KCY by Event Organizers 10

White Label and Integrations 10

A Smart Token Based on the Bancor Protocols 11

KickCity Event Platform 12

Artificial Intelligence 12

The App 13

Web 14

Product Features 15

Company Status 15

Advisory Board 16

The Development Team 18

Road Map 19

Budget Allocation 20

Token Crowdsale (1 KCY = 0.10 USD) 22

Conclusion 23


Introduction The event industry is one of the oldest industries with historical growth consistency. The US

Bureau of Labor Statistics predicts that the event industry will grow by 44% from 2010 to 2020

[2], exceeding most growth predictions for other industries. Each day, thousands of events

happen across the globe. These events happen for various reasons. Interestingly, 79% of US

marketers generate sales using event marketing (Statista).

One of the biggest problems facing the industry is marketing. Industrial statistics show that:

• 50% of vendors have problems with getting people to respond to invites;

• 40% have problems with getting people to pay attention to invitees;

• More than 30% cannot minimize no-shows;

• Nearly 30% find it hard getting people to the event;

• More than 20% have problems with confirming who is attending.

Google and Facebook have taken over the world of online advertising with 54% and 45%

advertisement revenue respectively. Most event organizers use these platforms for online

advertising while 13.6% of organizers do not have any experience running campaigns on these

platforms. Organizers using these platforms face serious challenges. 73.6% that use online

tools are victims of ineffective online advertisement. The current centralized online

advertisement platforms are designed to enrich themselves at the disadvantage of the users.

An example is Jack – a concert organizer who uses a CPC model for advertising. His Action is

“buy tickets”. With average CPC on Facebook as $0.32. He gets 1000 clicks, but only 30 people

complete ticket purchase. Jack ends up spending $320.00 while his real expense based on full

conversion was $9.60. That is a 3333% unnecessary expense.

CPA system cannot interact with FB or Google API, hence it's limited. CPA systems are also

centralized. Viral effects only happen when people have a reason to share.


KickCity Protocol

We propose a socially viral model for event marketing, where the vendor achieves maximum

result because an unlimited number of people are rewarded for promoting his events while the

attendees also get rewarded for being loyal to the platform. Every user, event, and ticket have a

unique ID which is registered on blockchain.

It works like this: each event has a marketing pool where vendors can allocate KCY tokens for

reward -based marketing. Once the campaign is launched, any user can click on the event and

smart contract generates a unique link for the user. The User can then share this link with his

friends on social media and get rewarded when there is a conversion (ticket sales or

registration). Smart contracts track all transactions and automatically distribute reward

transparently.

𝐴#= { all people invited i-th person}

𝑎%= contribution of j-th person

𝑎%= 𝑎%+&|()| for all 𝑎%Î𝐴#

𝑅𝑒𝑤𝑎𝑟𝑑# =𝑃𝑂𝑂𝐿

3 𝑎%4

%5&

∗ 𝑎#

The algorithm for distributing values among users is roughly equivalent to the following Java

code:

public void distributeTokens(Promoters promoters) {

Map<Id, Integer> map = promoters.getPromoters();

int total = map.values().stream().reduce(0, Integer::sum);

BigDecimal forOneContrib =

promoters.getContract().getTokensAmount().divide(BigDecimal.value

Of(total));

map.forEach((userId, contrib) -> issueToken(userId,

forOneContrib.multiply(BigDecimal.valueOf(contrib))));

}


Picture 1 — Protocol architecture

Use Case

Event organizer Stacy creates an event ‘A’ with ticket cost at $100 per seat. She obtains and

allocates 1,000 KCY tokens for marketing. Users on the platform see her event with a specified

number of coins and are motivated to promote it. They can invite their friends within the platform

to the event or use unique links to promote the event outside the platform. Once a ticket is

bought, the system automatically allocates KCYs to the person or a group of people responsible

for the sale or event registration.

Smart contracts help enforce fair distribution of rewards based on user contribution. Attendees

who buy tickets, receive rewards for buying on the platform. Users can buy with FIAT or obtain

tickets using bitcoins, Ethereum and KCY tokens for less price due to the fact that third parties

(banks) are bypassed. For every promotional campaign, KCY from the pool will be shared


among users who bought tickets. This will encourage people to buy more tickets on KickCity

and ensure the use of KCY. Gas on Ethereumblockchain for transactions come from the pool

too.

Picture 2 — Promotion Scheme (Use Case)


Pool Parameters

For the vendors to achieve maximum result while controlling pool distribution, we propose

different pool parameters;

Common pool distribution. This model distributes all available KCY tokens to participants once

the event is over or tickets are sold out. It doesn't depend on the number of participants.

Cumulative common pool distribution. This model distributes reward proportionally to the

percentage result reached during the promotion. Independent of the number of participants. i.e.

if there is 70% result (conversion) than 70% of the available token will be distributed.

Result based pool distribution. This model allows the vendor to select and how much reward a

user will get for 1 result — a conversion.

Level-1 Marketing

KickCity protocol is designed to be fair. This means that P2P marketing structure is not a

pyramid. It's marketing on the same level. Every promoter gets equal distribution of tokens if

they contributed equal result-based promotional power. Time or order of invitation does not play

any role in the system. A user who has more conversion via his link or invitations earns more.


Multi-Level-1 Marketing

Picture 3 — Introduction of Incitation Cost (Gas)

For quick growth, the first iteration of KickCity protocols is designed to become viral. Anybody

can easily get a unique link which he can share and receive rewards without any cost. In the

short-run, it is beneficial to the company as more people will get onboard. On the long-run, this

could potentially result to spamming within the platform. Therefore, once KickCity hits 1 Million

users, Multi-Level-1 marketing will be introduced. This means that every invitation will bear a

minimal cost. We prefer to call this cost “KCY token gas”. If an invitation is successful, the cost

will be returned + the reward. Unsuccessful invitation costs will return to the common event pool

for that event.


Reed’s Law & Network Effect

Reed's Law states that the "utility" of large networks can scale exponentially with the size of the

network. The reason for this is that the number of possible sub-groups of network participants is

2N, where N is the number of participants.

So if the utility of groups being available to be joined is very small on a per-group basis,

eventually the network effect of potential group membership can dominate the overall

economics of the system.

KickCity protocol is designed to run millions of events where each event is a subgroup with N

participants. The activities of each participant and subgroup will potentially benefit the whole

system.

Picture 4 — Network Effect


Purchase of KCY by Event Organizers

For simplicity and mass adoption, event organizers will have 2 main methods to purchase a

token for marketing.

Exchange — Event vendors can purchase KCY in exchanges according to the market value.

Credit card or other payment solutions - Many event vendors are not familiar with how

exchanges operate. For this reason, a web page will allow event organizers (only) to buy KCY

and transfer directly to their event pool. The cost of KCY on this page will always be higher than

the purchase rate in exchanges. This is to motivate vendors to buy from exchanges.

White Label and Integrations

In order to facilitate quick expansion and easy adoption, we will offer white label API technology

for KCY integration to other event platforms. We are looking at a future where KCY is the

universal event promotion token.

We are building an infrastructure that other event platforms can connect to and drive more ticket

sales by rewarding their users and improving social interaction at events.


A Smart Token Based on the Bancor Protocols KCY-tokens are smart standard ERC20 tokens which implement Bancor protocols, providing

asynchronous price-discovery while maintaining continuous liquidity by using constant ratios of

reserve tokens (BNT) held through smart contracts, acting as automated market makers. KCY

will equally be traded on the exchanges.

Benefits of Smart Tokens:

• Continuous Liquidity – since purchasing and liquidating is done through the smart

contract, smart tokens are always liquid, irrespective of their trading volume;

• No Extra Fees – the only mandatory fees applied by a smart token are the Blockchain

platform fees (gas) which are relatively low;

• No Spread – since the price calculation is done algorithmically by the smart token, the

same price applies to purchasing and liquidating the smart tokens;

• Lower Volatility.


KickCity Event Platform KickCity – built a community-based social event platform for event organizers and attendees.

For the past year, ‘KickCity, Inc.’ has focused on building communities around events, providing

event organizers with tools to create, promote and monetize their events. Every user has a

profile and one can invite friends to events and enjoy personalized content.

The event industry is undergoing metamorphosis and KickCity is one of the companies leading

this. A few years ago, tickets were bought or sold offline. Now it's happening online. The new

phase of event ticketing is based on social interaction. Users don't just want to buy tickets, but

know and interact with fellow attendees before, during and after events. Moreover, with the

growing speed of the internet, anyone would be able to set up a processing gateway and accept

tickets for his events. Therefore, Event platforms of the future will be fully built around people.

Event communities — decentralized or centralized.

Artificial Intelligence

KickCity adopted artificial intelligence (AI) algorithm to show personalized content for users. We

have achieved 92% accuracy on a recommendation by building a social graph of users on our

platform and their activities on other social networks.


The App

https://play.google.com/store/apps/details?id=com.kickcityapp.kickcity&hl

https://itunes.apple.com/app/kickcity-all-events-with-friends/id1124097475?l=en&mt=8

Picture 5 — KickCity Mobile app


Web

https://kickcity.io

Picture 6 — KickCity Web


Product Features

• Vendor Admin Panel

• Analytics & Sales report;

• Registration;

• Widget for websites;

• FIAT & Bitcoin ticket processing;

• Registration;

• Event Page & Social App;

• User profile;

• Likes;

• Attendee list;

• Event description and contact;

• Event video;

• Event comment;

• Event chat & comment.

Company Status

• Y Combinator Startup School;

• Microsoft Bootcamp Helsinki;

• Grant from NewCo &Government of Helsinki;

• Angel investment;

• Revenue Generating.


Advisory Board We are lucky to have a great advisory board that consists of celebrities, Blockchain, and event

industry professionals. We are currently talking with more great advisors and will keep updating

the list on the website.

Eric Benz — Managing Director at Cryptopay

• Eric is the man who brings a lot to the table. He's an experienced Fin-Tech and

Blockchain expert and currently the managing director at CryptoPay. He has spent

more than 10 years in the banking, identity, payment and processing industry.

Sebastian Stupurac — Project & Product at WINGS DAO

• Entrepreneur, Visionary, Husband. A big believer in crypto and blockchain

technologies in which he has been involved since 2013, Sebastian has vast

experience in Information Systems, people & product management, and customer

support. Sebastian has a BA in Information Systems.

Yonatan Ben Shimon — CEO & Founder at MatchPool

• Yonatan has more than 3 years in the blockchain industry. He's the founder and

CEO of MatchPool, which successfully run an ICO in April 2017. He also managed a

successful portfolio of cryptocurrencies and co-managed long short securities hedge

fund.

Andrey Yaraev — Founder at VisitRussia

• Andrey is a partner in Hotels.ru and CEO of VisitRussia agency, which offers the full

spectrum of highly professional services for leisure and business travelers alike.

George Piskov — Managing Partner at Uniastrum Capital Limited

• Dr. Piskov served as the Chairman of the Board of Uniastrum Bank (LLC) and serves

as its Director. He is a Member of the Council of the Association of Russian Banks

(ARB) and represents it in Great Britain. He is a graduate of Moscow Aviation


Institute and Institute of Investment Management and Research (London). Dr. Piskov

is Ph.D. in Economics.

Boris Povod — Blockchain Developer at WINGS DAO

• A known blockchain developer with many years of experience in the Crypto scene. In

the past, he Co-Founded Crypti and served as the lead developer. Also, acts as a

technical advisor for Lisk.

Jeremy Epstein — CEO of Never Stop Marketing

• Jeremy has 20 years of international marketing experience. Most recently, he was

VP, Marketing at Sprinklr which grew from a $20 million valuation and 30 people to

$1.8 billion valuation and 1400 people in 4 years.

KwasiAsare — CEO Founder of Fighter Interactive/Innovation Liv

• Kwasi was the New Media Director for Sean "Diddy" Combs' burgeoning empire,

simultaneously overseeing the development & marketing for Diddy's brands,

including Ciroc, Sean John Fragrance, Sean John Clothing and Bad Boy

Entertainment.

Jonathan Chester — Founder & President of Bitwage

• Bitwage is one of the most popular payroll & invoicing solution built on top of the

bitcoin blockchain. Jon has consulted members of the European Parliament, dutch

banks & regulators and the California Senate regarding regulation of the blockchain

industry.

Geoffrey Weli-Wosu — Project Lead at Domineum

• Advisor and active collaborator in developing Nigeria’s ICT sector, including areas of

e- government and e-pay.


The Development Team KickCity is an innovative company with highly inspired and experienced developers who have

worked in big IT companies like Google, Facebook, Yandex, and Mail Group.

Gideon Nweze (Gibson) — CEO & Founder

• Gideon is an Engineer and an experienced team builder, visionary, and leader. He

studied in Geneva Business school Barcelona Campus and recently graduated from

'Y Combinator' Startup School Accelerator.

Artem Shatilov — CMO & Product

• Artem loves UI/UX Design, Marketing, and Product Strategy. He is an Alumni of 'Y

Combinator' Startup School Accelerator with masters in International Business

Development.

Danil Kolikov — Lead Developer

• Danil has working experience at Mail.Ru Group (Russia) and Facebook (London).

And he really loves coding;

o Java stack: Java/Kotlin, RxJava, Android SDK (+ Dagger), Spring, Hibernate,

Maven/Gradle;

o JVM languages: Java, Scala, Kotlin, Groovy, Clojure;

o Functional languages: Haskell, Idris, Agda.

Leonid Startsev — Service Developer

• Leonid is a passionate developer and loves optimizing every single line of code. His

expertise include working at JetBrains on a new programming language Kotlin. He

thoroughly knows full Java / JVM stack – from build systems such as Gradle to

enterprise-level solutions like Spring and Hibernate. Experience with Unix systems,

bash command line, Python scripts and DevOps tools like Docker allows our team

maintain servers easily and deploy product faster.

You can see a full team at ico.kickcity.io.


Road Map Q4 2016 — KickCity App initial release

Q2 2017 — KickCity Event platform + initial revenue

Q3 2017 — Blockchain development and KickCity protocols

Q4 2017 — KickCity Protocol Demo and Use cases

Q1 2018 — Crowdsale “TGE” February 1st

Q3 2018 — More uses cases, More development, release of protocol API

Q4 2018 — Unicorn growth.


Budget Allocation

Development & Team: 30% of the budget

• The team consists of 10 developers and we intend to increase the development and

marketing team in order to achieve great and quicker results. We are already

conducting interviews and selecting the best from the best.


Administration: 13% of the budget

• All administrative costs, which includes and does not limit to legal, security,

accounting, office costs.

Marketing: 50% of the budget

• Our goal is to bring cryptocurrency to everyone on earth. That is why half of the

budget is focused on marketing. We already have top marketers on our waiting list

and as ambassadors. We will create many viral marketing campaigns.

Contingency: 7% of the budget

• We need to be ready for unforeseen costs. The excess will be directed back to

marketing or to buying back tokens from the market.


Token Crowdsale (1 KCY = 0.10 USD)

• Target: 12.5 Million USD;

• Launch date: March 1st 2018, 9:00 AM EST (1:00 PM GMT);

• End date: March 31st 2018, 7:59 PM EST (11:59 PM GMT);

• 1 KCY = 0.10 USD;

• 160 Million smart tokens will be available for crowdsale;

• We will accept Bitcoin and Ether;

• Bonuses:

o Day 1: 15%;

o Day 2–10 : 10%;

o Day 11–20: 5%;

o Day 21–31: 0%;

• 250 Million KCY will be created;

• 160 Million KCY will be sold during crowd sale and all unsold tokens will be

destroyed;

• 1 Million tokens will be allocated for user adoption and air drops;

• Team tokens — 30 Million (70% of team token will be vested for a maximum period

of 4 years);

• Partner tokens — 30 Million (Partner Tokens include bounty & marketing, advisors,

traditional angel investors, who invested in KickCity 2 years ago; 30% of the partner

tokens will be vested for a maximum period of 4 years);

• KickCity pool — 30 Million tokens will be retained by KickCity for future sales.

The percentage distribution of KCY tokens MIGHT change following forecasting on the Wings

platform.

After Forecasting on Wings platform:

• Price and bonus of token (KCY) will not change;

• Token allocation and distribution might change;

• Number of created tokens will not change;

• Number of tokens sold during crowdfunding might change;

• HardCap might change.


Conclusion We propose a socially viral system that can potentially bring millions of people in contact with

cryptocurrencies. Especially the longtail. KickCity protocols can be a good fit for other industries

for marketing, but it’s a perfect fit for the event industry because naturally, events are about

people, community and sharing things together.

KickCity Event platform is ready.

By giving people the reason to care, Network effect by Reed’s law can drive virality.

KickCity Whitepaper kickcity.io

Version 5.4 [email protected]

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