TokenDraft. A decentralized, peer-to-peer fantasy sports contest platform using smart contracts on the Ethereum blockchain

Transcription

1 TokenDraft A decentralized, peer-to-peer fantasy sports contest platform using smart contracts on the Ethereum blockchain

2 Table of Contents Introduction 3 Daily Fantasy Sports 3 State of the Global Fantasy Sports Industry 4 Global Fantasy Sports Market Share 5 Fantasy Sport Revenue Growth by Product Type (in billions) 5 Global Fantasy Sport Geography and Demographics 5 Global Fantasy Sports Market by Geographical Region 6 Fantasy Sports Revenue Growth by Region (in billions) 6 Fantasy Sports Player Demographics 7 Fantasy Sports Vendor Analysis 7 Top Fantasy Sports Vendor Valuation 8 Problems within the Global Fantasy Sports Industry 8 Daily Fantasy Sports Sites by State 9 The Rise of Esports 11 An Influx of Sponsorship Financing and Prizes 11 Worldwide Access to Fantasy Sports 13 The TokenDraft Solution 13 TokenDraft Key Benefits 14 TokenDraft Platform Mechanics 14 TKD Token Mechanics 15 Token Sale Structure 16 Token Time-Locked Plan 18 Current Competition 18 Competitive Analysis 19 Marketing Plan 19 On-site and Social Media Advertising 20 Business Model 20 Conclusion 21 TokenDraft Core Team 22 TokenDraft Advisors 24 Legal Requirements 25 Deleted: Deleted:

3 Introduction Fantasy sports is a billion-dollar industry projected to reach $14 billion by the year The market is largely driven by two U.S. vendors, DraftKings and FanDuel, who spend over $100 million dollars in advertising throughout the NFL season. North America is the dominant global market with 59.3 million players throughout the U.S. and Canada engaging in fantasy sports games. 2 However, given the increasing proliferation of smartphones -- and the internet of things (IoT) in general -- the global market is quickly expanding to the European and Asian-Pacific regions. Though paper-based fantasy sports games and sports wagering have existed long before the internet appeared, the online fantasy sports market is a relatively new phenomenon comprised of end users who engage in an owner simulation or roto. In the roto game scenario, the results are based on the current statistical performance of the athletes selected as part of their fantasy sports team. Rather than being mere sideline spectators of a sport, fantasy sports participants engage in various games where they strategically piece together their own team. Daily Fantasy Sports Fantasy sports players have a choice between playing daily, weekly (Daily Fantasy Sports or DFS) or season long games. For example, a DFS participant will draft their team for a day or week-long contest. One of the main constraints DFS players have when creating a team is a salary cap, which represents the maximum budget available for choosing individual athletes to be a part of their fantasy team. Yet, a salary cap isn t the only method DFS platforms use for drafting players. A snake draft provides a method for fantasy sports managers to draft athletes within a predetermined number of rounds. The number of rounds depend on the maximum number of athletes allowed on a team roster. To illustrate, if the roster limit is 10 players, then the managers will go through 10 rounds where each has one opportunity per round to draft particular athletes. There is an added twist. The manager who chooses first during the first round will be moved to the last person to choose their athlete during the second round. This cycle continues in a snake-like format until all rounds have been completed and all rosters are full. Determining which manager goes first depends on the specific 1 Technavio.com. (2017). Global Fantasy Sports Market: FSTA.org. (2017). Industry Demographics: Actionable Insights & Useful Data. Available at:

4 rules of each platform. As such, the who goes first may be established through a random assignment or based on some other statistical factor used by the DFS platform. DFS contests generally have a larger pool of players which often translates into a greater likelihood for a larger payout should a manager s team earn the most number of points. Certainly, DFS pool size can also be artificially capped by the platform limiting the number of participants for each DFS contest. The points that DFS players earn are contingent upon on the athlete's performance throughout the duration of the contest; again, this can be limited to a day or span an entire week. Those DFS players who achieve the most points will earn a payout based on the size of the participant pool and where they rank in relation to other fantasy sport teams. It s important to keep in mind that payout structures differ depending on the game type. As an example, a Guaranteed Prize Pool (GPP) ranks the fantasy sports players based on the number of points earned within the specific time frame. Those players who have the highest number of points will earn a higher payout depending on where they rank in the tiered payout structure. State of the Global Fantasy Sports Industry The number one fantasy sport worldwide is soccer. 3 Due to soccer s international status, which culminates in a global competition during the World Cup and comprises a fan base of 3.5 billion 4, its dominance as a fantasy sport is not surprising when viewed in a worldwide context. Baseball takes a distant second to soccer, and American football ranks third in the global fantasy sports marketplace. The individual market share of each fantasy sports product type is expected to either grow or slightly decrease at varying rates through the year More specifically, fantasy baseball, basketball, and other sports are expected to decrease with respect to total market share. The other sports category encompasses less popular sports in terms of sports wagering and includes MMA, golf, rugby, ice hockey, and tennis. Though fantasy sports contests for other sports is likely to increase in terms of monetary growth, when compared to all other product types within the market, its market share is projected to decrease. 3 Technavio.com. (2017). Global Fantasy Sports Market: Topendsports.com. (n.d.). Available at:

5 Global Fantasy Sports Market Share 5 Sport Soccer 40.63% 44.38% Baseball 14.18% 12.95% Basketball 8.48% 8.00% Football 12.03% 12.31% Other sports 24.68% 22.36% Total Market Share 100% 100% When we drill down to an individual sport level in terms of each fantasy sport potential earnings growth, it is clear that each product type is projected to increase with regard to revenue generation. Notably, other sports is the only product type that ranks second to soccer in terms of a revenue increase. However, since it s a combination of several different sports rather than a single sport classification, the conglomeration of sports fantasy participants will naturally be larger due to the sport varieties included. Fantasy Sport Revenue Growth by Product Type (in billions) 6 Sport Soccer $4.11 $6.02 Baseball $1.34 $1.76 Basketball $0.81 $1.08 Football $1.19 $1.67 Other sports $2.27 $3.03 Global Fantasy Sport Geography and Demographics As previously stated, North America, which includes the U.S. and Canada, currently comprises a majority of the global fantasy sports market. Yet, Europe, Asia-Pacific, and the rest of the world, including South America, the Middle East, and Africa, are gaining traction with regard to fantasy sports participation. Arguably, in concert with continued 5 Technavio.com. (2017). Global Fantasy Sports Market: Ibid.

6 technological advancements, soccer s worldwide popularity is an additional market driver for increased interest in fantasy sports outside of North America. Indeed, the largest market share increase is predicted to be those players outside of North America and Europe. As detailed by the regional statistics, the market share is likely to shift towards Asia-Pacific and the rest of the world. Global Fantasy Sports Market by Geographical Region 7 Region North America 46.46% 38.38% Europe 23.67% 19.77% Asia-Pacific 17.34% 23.73% Rest of the world 12.53% 18.11% Total market share 100% 100% However, North America will still maintain its status as the predominant geographical market for fantasy sports participation. This is due to several socioeconomic factors including the amount of disposable income Americans and Canadians possess relative to the other regions. In particular, DFS attracts North American players because 1. There is likely a larger prize pool (unless the platform caps the number of DFS participants). 2. It s a faster game than playing season long contests. 3. There are a wide variety of games available. 4. The games are easily played and results provided via mobile devices. Overall, whether season long or DFS, engaging in fantasy sports boosts participants interest in watching sports. 8 Steady revenue growth is projected to occur through 2020 for all regions. For this reason, it would be a wise move to develop a fantasy sports platform that extends accessibility to other geographies outside of the U.S. and Canada. Fantasy Sports Revenue Growth by Region (in billions) 9 Region Ibid. 8 FantasySports.net. (n.d.). Daily fantasy sports: Everything you wanted to know. Available at: 9 Technavio.com. (2017). Global Fantasy Sports Market:

7 North America $4.21 $5.20 Europe $2.16 $2.68 Asia-Pacific $1.92 $3.22 Rest of the world $1.42 $2.46 Fantasy Sports Player Demographics Overwhelmingly, Fantasy sports participants are males in their late 30 s who are college educated and have a household income greater than or equal to $75,000 per year. 10 Furthermore, they spend an average of $556 per year on fantasy sports, and 70% of the players pay league fees. 11 This is not to say that women do not participate in fantasy sports. Women fantasy sports players comprise 34% of North American participants. Granted, the statistics stated focus solely on North American players since the extension of the fantasy sports market is only now gaining momentum in other regions outside of North America. Suffice to state that the demographic information is likely to shift depending on the age and income level of participants in Europe, Asia-Pacific, South America, Africa, and the Middle East. Fantasy Sports Vendor Analysis Though there are a few smaller fantasy sports vendors which include CBS, ESPN, and Yahoo, FanDuel and DraftKings are the predominant platforms worldwide. DraftKings established a UK presence in 2016, and the vendor continued to expand into the European market in On the contrary, FanDuel enacted a hiatus for contests in the UK specifically. Their reasoning was to concentrate on the lucrative North American market for the ensuing NFL season. 13 In a Tweet sent on July 28, 2017, FanDuel UK stated that it wouldn t be offering any current contests. However, the fantasy sports behemoth did not state this was a permanent decision. At this time, there is no additional information on plans that FanDuel will move further into the international market. 10 FSTA.org. (2017). Industry Demographics: Actionable Insights & Useful Data. Available at: 11 Ibid. 12 Tepper, F. (2017). DraftKings has received a Malta gaming license, paving the way for European expansion. TechCrunch.com. Available at: 13 Gouker, D. (2017). Daily fantasy sports retreat: FanDuel pulls out of UK after one year. LegalSportsReport. Available at:

8 In 2016, FanDuel and DraftKings announced plans to merge. Due to threats of litigation from the Federal Trade Commission, the merger was cancelled. Given that the two platforms are the preeminent fantasy sports vendors, it s reasonable to conclude that a merger would have manifested into an unfair monopoly in the sports fantasy market. Together they compose a total valuation of just under three billion dollars and spend hundreds of millions of dollars for television advertising. Additionally, both platforms have partnerships with several major broadcasting or publication companies including Time Warner Cable, NBC Sports Ventures, Google Capital, Forbes, TechCrunch, The Boston Globe, and The Wall Street Journal. Furthermore, DraftKings and FanDuel have secured partnerships with specific teams within the NFL, NBA, and MLB. Such associations represent an increase in advertising accessibility and underscore the importance of newly proposed platforms following a similar partnership outreach for reaching sports fans who are likely to play fantasy sports. Top Fantasy Sports Vendor Valuation 14 Category DraftKings FanDuel Valuation $1.2 billion $1.3 billion Total capital raised $375 million $361 million 2014 revenues $30 million $57 million 2015 TV advertising expenditure $131.4 million $74.5 million Problems within the Global Fantasy Sports Industry The most prescient problem within the global fantasy sports industry is one of perception. There are those who view the industry as gambling despite its U.S. classification as a game of skill where an individual or group is wagering against the probability that other participants have an equal skill level in choosing their fantasy team athletes. Certain states in the U.S. still prohibit the use of fantasy sports sites. Confusion arises due to the fact that participating in fantasy sports is not illegal in the U.S., and certain states will allow residents to participate through FanDuel or DraftKings but will not allow residents to use Yahoo as a sports fantasy platform. Meanwhile, a select few states do 14 Mochari, I. (2015). Why DraftKings and FanDuel Spent $206 Million on Ads This Year. Available at:

9 not allow residents to play sports fantasy games at all. The legal clarity regarding a state by state acceptance of online sports fantasy games is still not well established as of this writing. Daily Fantasy Sports Sites by State 15 Draft FanDuel DraftKings Yahoo Alabama No No No No Alaska Yes Yes Yes Yes Arizona No No No No Arkansas Yes Yes Yes Yes Delaware Yes Yes Yes No Florida Yes Yes Yes No Hawaii No No No No Idaho No No No No Illinois Yes Yes Yes Yes Iowa No No No No Kentucky Yes Yes Yes Yes Louisiana No No No No 15 LegalSportsReport.com. (2017). What are the state where you can play daily fantasy sports? Available at:

10 Michigan Yes Yes Yes Yes Mississippi Yes Yes Yes Yes Missouri No Yes Yes No Montana No No No No Nebraska Yes Yes Yes Yes Nevada No No No No New Mexico Yes Yes Yes Yes New York Yes Yes Yes Yes Oklahoma Yes Yes Yes Yes Oregon Yes Yes Yes Yes South Carolina Yes Yes Yes Yes South Dakota Yes Yes Yes Yes Tennessee Yes Yes Yes Yes Texas Yes No Yes Yes Vermont Yes Yes Yes Yes Virginia Yes Yes Yes Yes Washington No No No No

11 The Rise of Esports Also known as competitive or professional video gaming, esports is on a trajectory to reach $1.5 billion in revenue by By definition, esports are events that are organized by third parties offering prizes to teams or individuals who will compete against one another via a specified video game. 17 In terms of viewership, esports appeals to younger audiences between the ages of 21 to 35, and primarily consists of Millennials and Gen Z ers. As with fantasy sports, competitive gaming is primarily male (70%). However, there are distinct differences in employment and education: 55% are employed full time, and 46% of participants are college graduates. 18 With regard to viewership, just under 400 million people worldwide are either frequent or occasional viewers of esports games. 19 While this pales in comparison to global viewers of soccer (3.5 billion), it s on its way to rivaling the viewership of other traditional sports such as basketball (825 million), baseball (500 million), 20 and the Super Bowl (113.7 million). 21 An Influx of Sponsorship Financing and Prizes Millennials and Gen Z ers have grown up in a world where digital advertising is constantly vying for their participation in the consumer economy. Additionally, in the digital age, where entry into most industries as an entrepreneur is relatively easy, there are a plenitude of products and services from which to choose. Thus, brand loyalty is not as strong among the younger generations. For these reasons, it s a challenging demographic for marketers to reach; however, esports is an access point for product and service marketing through sponsorship. Coca-Cola, Buffalo Wild Wings, Arby s, and Red Bull are just a few of the sponsors who fund gamers and add to 16 Statista.com. (2017). esports market revenue worldwide from 2012 to 2020 (in million U.S. dollars). Available at: 17 Newzoo. (2017). Global esports market report. [Summary sheet]. Available at: hsctatracking=3a4cc3a4-5b97-46cd-89fb-e25a7f3fea2d%7c80a504c2-6c7e-4198-acaa-de102e2e48cd 18 Bathurst, E. (2017). The average of esports viewers is higher than you may think, says GameScape from Interpret, LLC. Esportsobserver.com. Available at: 19 Statista. (2017). Esports audience size worldwide from 2012 to 2020, by type of viewers (in millions). Available at: 20 World Atlast. (2017). What are the most popular sports in the world? Available at: 21 Smith, J. (2017). First ever overtime Super Bowl dras in million viewers across America - making it the second most watched in history. Dailymail.co.uk. Available at:

12 the increasingly large prizes. To illustrate, the total prizes available in 2016 was over $93 million dollars. 22 Given the amount of potential revenue that can be accrued from diving into the esports market, traditional sports teams have either partnered with esports teams or are in the process of launching their own esports franchise The primary differentiator in revenue generation between fantasy sports and esports is how that revenue is earned. Fantasy sports platforms are focused on the pay to play format, where a certain percentage, the rake, is funneled to the platform. Meanwhile, esports earns revenue from advertisers in a multitude of ways including direct partnership with esports teams, sponsoring large-scale events, and via direct advertisements that stream through video gaming platforms. 25 Arguably, the difference in the revenue stream is a mitigating factor in the likelihood that online esports wagering will overtake fantasy sports as a dominant preference over sports wagering. At this time, esports betting is still in its early stages of development, but there are online sites with a specific focus on esports as a fantasy sport. 26 The legal ramifications of using the term betting in esports are not yet completely clear. Given its meteoric rise in popularity, it s likely that governmental regulatory systems haven t fully grasped where esports is headed in terms of being embraced as a fantasy sport. There is no indication that esports viewers and participants don t also watch traditional sports and participate in fantasy sports games. In fact, 57% watch the NFL, 47% tune into NBA games, and 40% continue to follow MLB games. 27 Millennials do participate in season-long fantasy sports games and is the generation that bridges the gap between esports and fantasy sports engagement Lofgren, K. (2017) video game trends and statistics - who s playing and why? Bigfishgames.com. Available at: 23 Rapaport, D. (2017). What to expect from the booming esports industry in Sports Illustrated. Available at: 24 Kent, M. (2017). Major traditional sports teams from around the world are moving into esports. Dextero.com. Available at: 25 Esportsbetting.uk. (2016). esports vs Daily Fantasy sports. Available at: 26 esportsonly.com. (2017). Best esports betting sites. Available at: 27 Bathurst, E. (2017). The average of esports viewers is higher than you may think, says GameScape from Interpret, LLC. Esportsobserver.com. Available at: 28 Moran, G. (2017). Fantasy sports: Fleeting folly or fabulous gold mine? TheWrap.com. Available at:

13 Worldwide Access to Fantasy Sports The current fantasy sports platforms are centralized, and access is limited by the presence of either DraftKings or FanDuel s successful application for licensing in the regions of operation. Additionally, some countries disallow online wagering if the platform is based in their particular country but do allow their citizens to participate in international online wagering. 29 Yet, there is no current consensus on wagering using Bitcoin or any other token. 30 This is largely due to the same reason that esports betting hasn t been questioned regarding its legal status throughout the world: both esports and Bitcoin (or any other token for that matter) have experienced rapid growth in a short period of time. Therefore, for the moment, wagering with a token is one solution to expanding global access for worldwide participation in fantasy sports gaming. Since DraftKings and FanDuel are also limited by local and international law, their availability is constrained; thus the number of players is also limited. The result is lower payouts for winners as only participants within certain U.S. States and international countries are allowed to use their platforms. Smaller local fantasy sports platforms do not possess the same reliability in terms of platform stability or an established infrastructure within a secure environment. DraftKings and FanDuel aren t immune to server issues. A server outage can easily and severely impact the fantasy sport participants outcomes. Blockchain provides a decentralized platform where players aren t relying on the decisions made by DraftKings, FanDuel or other fantasy sports platforms competing for participant monies. As such, we present a blockchain fantasy sports solution that provides the robust security of blockchain technology and a token wagering system which supports worldwide access. The TokenDraft Solution TokenDraft is a fantasy sports platform providing worldwide access for participants who wish to engage in daily fantasy sports (DFS) wagering. To open a wager and initiate an event, users will deposit a Fan token (TKD) which triggers the smart contract for the prediction of a particular game's outcome. This is a blind voter system within a specified and limited time frame. Within that time frame, participants will vote on whether they agree or disagree with the other participant s prediction. Voters must also deposit TKD to enact their vote. Once the time has expired for the particular event in play, the votes are revealed. Those who voted for the correct prediction will receive their TKD distributions 29 Esportsbetting.org. (n.d.). Esports betting laws. Available at: 30 Bitedge.com. (2017). Bitcoin gambling laws and jurisdictions. Available at:

14 while those who voted against the applicant s outcome will lose their TKD. The distribution protocol is based on a weighted calculation of the percentage of TKD each voter placed into the voter pool. TokenDraft Key Benefits Based on thorough research of the fantasy sports market for both traditional online platforms and other blockchain competitors attempting entry into the sector, we ve designed TokenDraft with several key benefits in mind: There is less (or no) risk in terms of fraud or selling player information to marketers. Due to the consensus network, and the immutable nature of the distributed digital ledger, there is little risk of hackers stealing tokens. There are no fees or house rake on player winnings. Participants are free to wager. Worldwide participation (where token transactions are allowed). Pure peer-to-peer transactions for daily fantasy sports skilled-game wagering. Winnings are immediately transferred to the player s personal Ethereum wallet address. Due to the Ethereum infrastructure (public versus private keys), TokenDraft offers player privacy. As the platform economy evolves, other sports-related features and content will be offered. Players may earn tokens through offering fantasy sports-related content and also buy content from other experts on the platform. TokenDraft Platform Mechanics We ve chosen the Ethereum blockchain for TokenDraft s infrastructure. For those not familiar with Ethereum blockchain, it s the current and direct competitor of the Bitcoin blockchain. There are two key differences between the Ethereum blockchain and Bitcoin blockchain concepts: 1. Ethereum blockchain allows the development of applications (Dapps) to be built on top of the blockchain technology, thus expanding its utility function. 2. The creation of smart contracts that can be partially or fully auto executed and auto enforced.

15 The decentralized nature of blockchain is fundamental to preserving the transaction records should one server fail. Since all transactions are distributed and visible throughout the blockchain network, if a server malfunction occurs, the integrity of the data is preserved throughout the network. TokenDraft's initial TKD token economy will focus on two key areas: 1. Customers ("managers") wagering on daily fantasy sports contests of multiple entrants, of various USD amounts (e.g. $2, $5, $10, $25, $50, etc) that account for the current market price of TKD tokens (e.g. $10 contest entry = 100 TKD tokens, where the current TKD market rate is $.10), and entering contests where athletes are drafted either with a salary cap (e.g., $10,000 total to spend on player positions) or snake draft format. 2. Customers ( managers ) purchasing daily fantasy sports expert content with TKD tokens. The pricing for these videos, newsletters, or other content is based on valuation by the content s creator and will provide guidance regarding professional strategies for winning the contests. TKD Token Mechanics

16 TKD is the token that powers the TokenDraft economy. As such, it is the underlying method for the TokenDraft smart contract protocol. Players use TKD to enter contests, oracles get paid TKD to report correct outcomes, oracles lose TKD when reporting incorrect outcomes, and players receive a share of the TKD Token pool when winning contests. Summarily, the TKD utility token can be used on the TokenDraft platform in a number of ways: TKD is the only token that can be used to enter daily fantasy sports contests rather than season-long leagues. Content creators of expert information are paid in TKD. TKD token holders can propose, vote, and finance, TokenDraft platform enhancements Token Sale Structure

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18 Token Time-Locked Plan A token time-locked plan has been created for both founders and token investors to share in the same long-term vision of building both a stable and successful Ethereum blockchain project. By locking up the founder s token allocation, it will show commitment in holding our token share over the following time frame after the conclusion of the public sale. 25% will be released 6 months later 25% will be released 12 months later 25% will be released 18 months later 25% will be released 24 months later Current Competition With regard to blockchain oriented fantasy sports vendors, there is currently very little competition for TokenDraft. NoLimitCoin (NLC) was launched in 2015; however, they still require a minimum fee for player entry and their current sport choices are limited to NFL. Furthermore, they ve only recently launched their FIFA option. NLC does not offer instant payouts using ERC-20 Tokens, nor do they provide season-long games on their platform. Though DraftKings and FanDuel offer a wider variety of sports for wagering, their participation fees are high, they are limited by governmental restrictions as to who can play, and their centralized platform does provide an avenue for fraudulent activities such as high-frequency trading through the deployment of automated algorithms. For a participant to set up their account for payment, a social security number and/or their government issued identification must be uploaded to the platform. Given the shocking increase in the number of data breaches in the financial services sector, with the most recent Equifax and Deloitte hackings, this leaves participants vulnerable to identity theft and financial loss. Additionally, payouts via DraftKings and FanDuel can take anywhere from days to weeks, and the intermediary payment systems maintain the right to refuse or reverse the monetary transaction. In contrast, TokenDraft is a pure peer to peer and 0% fee fantasy sports platform. The decentralization and immutable transaction protocol offer extra layers of security against fraud. Participation requires a personal Ethereum wallet address for instant payouts using the well-known ERC-20 token. We re well aware of the diverse sports interests of fantasy sports participants. Hence, the NFL, MLB, NBA, and FIFA are currently the sport types

19 we ve incorporated into our platform. Anyone located anywhere in the world can play at any time day or night, thus enlarging the player pool and number of games available each day or week. Competitive Analysis Features TokenDraft FanDuel DraftKings NoLimitCoin 0% fees DFS Marketplace: Ability for DFS experts to sell their strategic advice. DFS Marketplace: Ability for DFS players to buy strategic advice. Season-long Leagues Decentralized technical services to avoid fraud, manipulation, or highfrequency trading Instant Payouts with ERC-20 tokens Enabled for NFL Enabled for MLB Enabled for NBA Enabled for FIFA Anyone, anywhere can play Marketing Plan Our target demographic are participants between the ages of 25 and 60. Though current demographic statistics indicate that the average age of sports fantasy players is 35 and above, we seek a wider participant pool. The average age of each sport type in terms of viewership is scaled higher than those who engage in fantasy sports games. For example, the average age of U.S. based NFL viewers is 52 with the youngest viewership in all sports (see below) being 40 years old (Major League Soccer).

20 Furthermore, since our platform isn t limited to North American players, and there are no verifiable statistics regarding fantasy sports players on a global scale, we believe there is a younger demographic throughout Europe, Asia Pacific, the Middle East, South America, and Africa who have not been able to participate due to the factors previously discussed. This is substantiated by the fact that the standard age of the FIFA World Cup viewer worldwide varies between 16 and 50 years old, and this further depends on the viewer s global location. 31 In light of the 3.5 billion soccer fans around the world, we would be remiss in ignoring those participants who are above or below the U.S. and Canada focused demographic statistics for fantasy sports players. On-site and Social Media Advertising An important component of our marketing plan is to enact on-site staffing of up to 10 individuals who will manage on-site activations at NFL and NBA stadiums to encourage fans to sign up for and play TokenDraft. Simultaneously we will launch social media campaigns on Facebook and Twitter in addition to the following: Google AdWords Affiliate Marketing TV and Radio advertising Content Marketing, Banner Advertising, and Retargeting Extending partnerships with major league associations is a primary component of DraftKings and FanDuel s advertising success. This has not gone unnoticed by us. With this in mind, we will deploy additional brand awareness campaigns via partnerships with NFL and MLB clubs. The benefits of these partnerships include incorporating fantasy statistics, leaderboards, and other fantasy game related content into stadium scoreboards, ribbon board and LED signs. Business Model TokenDraft is financially backed by its founders and has supplied the capital necessary for its inaugural launch. We will hire the necessary personnel who will further assist us in supporting and developing a truly decentralized fantasy sports protocol. Our vision drives our business model: to construct a global blockchain platform and issue a token, while charging a 0% margin whereby, participants can easily enter a fantasy sports contest, 31 Kantar Media. (2014) FIFA World Cup Brazil Television Audience Report. Available at: )(issuedate )_neutral.pdf

21 wager against other participants, and win a percentage of the gross pot when they ve earned one of the top 3 spots as determined by their aggregated number of points. Token holders will have the capability of proposing, voting, and funding new features. Staff costs will be funded from the company portion of the token generation event (ICO). The rest of the company held funds raised from the token generation event (ICO) will be used for other expenditures, such as additional feature implementation, marketing, public relations, business development, licenses, and additional partnerships within the sports industry. We hope to expand the TokenDraft economy to include expert content creation, other fantasy areas outside of sports, and possibly even professional game wagering where our token will continue to be utilized. We believe that building TokenDraft on the Ethereum blockchain will not only be a game changer, but will also continuously increase in value as the benefits far outweigh any competing solution. Not only will the company continue to invest in the platform s development of, but token holders will also have the ability to fund improvements. From our perspective, we see participants as being the true business owners. Conclusion In a quickly growing industry, technology has to keep pace with consumer demand. The sports fantasy sector is rapidly expanding as sports fans seek to engage with each other via their shared interest. The advent of the Ethereum blockchain opened up a world where peer-to-peer transactions involve an exchange other than strictly buying, holding, and selling a particular token. Such is the reason we chose to develop TokenDraft for sports fans by building a distributed application on the Ethereum blockchain. Not only does this solve the issue of restrictions levied via global regulation, but also prevents insider trading, increases cybersecurity, and eliminates the interference of third-party marketers who have their own financial agenda. TokenDraft is being developed by fantasy sports enthusiasts, for fantasy sports enthusiasts. As such, our objective is to create a fantasy sports experience that is both equitable and rewarding for all who choose to play. We achieve this goal by strictly featuring peer-to-peer contests, offering an industry first 0% margin on all wagers, and easy account funding via the use of our ERC-20 token, which provides equally fast payouts.

22 TokenDraft Core Team TokenDraft has amassed an all-star team who possess a variety of skills, experience, and fantasy sports trophies, making this project a dream come true. We are a group of serial entrepreneurs that come from the fields of finance, marketing, software development, token and blockchain technology. After repeated discussions regarding the current slate of antiquated sports fantasy systems, and combined with the emergence of tokenizing platforms, we could see that the time was right for a vastly improved fantasy sports experience. Having all of the components in place, plus far-reaching resources in a number of industries, we ve begun the process fulfilling that vision. Given the 30+ years of fantasy sports experience on our team, we know all of the features we ve become accustomed to in the industry. Additionally, we want to include other facets that further encourage community support and fuel the TokenDraft economy. We are strong proponents of the philosophy that things happen for a reason. Thanks to both Satoshi and Vitalik, who brought their vision of peer to peer transactions to the public s attention, their concepts have ushered in a method for truly democratizing every industry on a global scale. We believe that TokenDraft is going to change the landscape of the sports fantasy industry. By offering a secure and trusted solution where fans around the world can enter contests, select their favorite sports players, receive their prize winnings swiftly while their information is kept private and never sold to third parties, TokenDraft is providing a truly unique blockchain platform that we, personally, would use. Alham Benymann, CEO, Founder Al is a serial entrepreneur that has more than 15 years of experience in online marketing and web development. He is currently the Chairman of the Board for a publicly traded company, NodeChain. Which is involved in blockchain technology for the alternative products industry. Blaine Elliott, CTO, Founder Blaine Elliott is a career Software Engineer, Data Scientist, and entrepreneur. Blaine has led software development projects on some of the largest distributed database installations in the industry at Microsoft, MySpace and various startups. Blaine received his bachelor s degree in Economics and Mathematics from UC Santa Barbara.

23 Sergei Gritsenko, Investor Relations Manager Sergei has over 15 years experience as an investment and technology advisor. He is а co-founder of a blockchain based startup. Sergei is an ICO advisor, crypto investor, and blockchain expert. Steve Byers, General Council Steve Byers is a seasoned attorney with over 15 years of experience dealing with complex business and intellectual property matters confronted by start-ups and Fortune 100 companies alike. Steve has also guest lectured at UCLA, and USC, among other universities, about the intersection between the law, the internet, and innovation. Before forming his own firm, Steve spent nearly a decade at Pillsbury Winthrop, one of the largest law firms in the nation. Over his career, Steve has won many awards and accolades for his legal service. Steve graduated from UCLA Law and UCLA undergrad, where he studied physics and philosophy. Christian Hentschel, VP Engineering Mitch Stewart, Full Stack Developer Mitch has over 30 years experience in software design and development including C, C++, Fortran, PHP, Java, JavaScript, SQL. Additionally, he has worked on projects for the NSA, HP Computer, Digital Computers, Sun Micro Systems, Apollo Computer's, MIT, NASA, and Boeing. Brett Elliott, Software Architect Brett is a career Software Engineer who has been building enterprise applications at Google, KPMG, and OpenWave for nearly a decade. At Google, Brett has led development projects for some of the largest distributed enterprise applications in the world. Brett received his Bachelor of Science in Computer Science from Carnegie Mellon University. Sky Gilbar, Designer Sky Gilbar is an award-winning Digital Product Designer and Innovation Strategist that works with enterprise technology clients, startups, and purpose-driven brands. Sky has been the founder of multiple design-led startups, including Snapwire, a platform linking 450k mobile photographers directly with photo buyers. Sky is also an advisor to multiple startup teams, and an entrepreneur in residence at Impact Hub.

24 Chelsea Sallee, PR & Marketing Chelsea has over 10 years of public relations and marketing experience and specializes in media relations, account strategy, branding, events, social media activation, digital communications, and company and product launches. Chelsea earned her bachelor s degree in Communications with a Minor in Textiles and Clothing Marketing from the University California, Davis in After college Chelsea took graduate coursework in New Media Communications at the University California, Los Angeles. Michael Graham, Daily Fantasy Sports Manager Spanning two distinctive careers, Mike began working in brand development and product sales, focusing on client management and on-site marketing. Upon departing from the beverage and entertainment industries, he joined the aerospace sector as a flight hardware configuration management engineer. His specialties include applying technical process and support for the development, production, and operation of configuration through planned management, and ensuring that design and product baselines are established. TokenDraft Advisors Stephen King, CEO RexMLS Stephen is an entrepreneur who focuses on commercial real estate and blockchain technology. Since 2013, Stephen has lead King Realty Group in Princeton, New Jersey and participated in tens of millions of dollars in real estate transactions. Stephen has worked on several real estate related technology startups and is the founder of Princeton Ethereum Meetup. Jason Civalleri, MBA JD, Founder Spl.yt, COO MyCrypto Jason is a thought leader over the intersection of blockchain ecosystem and the law. He has published over twenty articles concerning this topic, including pieces featured in HackerNoon and EthNews. He has advised over ten blockchain projects concerning business and legal strategy. Jason is now the Chief Compliance Officer of MyCrypto. Jay Freeman (a.k.a. saurik), Orchid Labs Co-Founder Jay is the founder and CEO of SaurikIT LLC, a software development company that is the owner and operator of Cydia, the alternative to the App Store used on jailbroken iphones, ipads, and other ios devices used by tens of millions worldwide. As part of SaurikIT, he co-founded Orchid, a peer-to-peer protocol with a goal of ensuring

25 surveillance-free access to the Internet for everyone, everywhere. Orchid combines monetary incentives (using a cryptocurrency) with design decisions that give users a feeling of "control" over their Internet connection with a fully-decentralized protocol to build a secure market for bandwidth. Jay's largely-academic background is in networking, static analysis, and programming languages. He has developed widely used software applications and tools for developers including Cydia Substrate, Anakrino, Cydia Impactor, and Cycript. Patrick Dietzen, Orchid Labs Advisor Patrick serves as the VP of Business Development at SaurikIT LLC, a software development company that is owner and operator of Cydia (App store used on millions of iphones) and holds an ownership interest in Orchid, a peer-to-peer Internet protocol that ensures a surveillance and censorship-free Internet. Patrick serves as an advisor to Orchid. Previously, in addition to other roles, Patrick cofounded and served as President of Sirigen, which successfully commercialized flagship technology developed at the University of California Santa Barbara that applied novel conducting polymer materials for fluorescent biomarker detection in healthcare diagnostics and was subsequently acquired by Becton, Dickinson & Co. for nearly $70 million. The inventors of Sirigen s technology included Alan J. Heeger, winner of the Nobel Prize in Chemistry for the discovery of conductive polymers, and the company serves as a notable success story for commercialization of a materials innovation out of a university lab. Daniel Barbarisi, Author of Dueling with Kings Daniel Barbarisi is a veteran sports and news journalist. Over a 15-year career in print journalism, Daniel was on staff at the Boston Globe, Providence Journal, and ultimately the Wall Street Journal. He left daily journalism in 2015 to focus on writing books, leading to the 2017 publication of Dueling with Kings, the definitive work on the Daily Fantasy Sports industry. Daniel received a Bachelor's Degree from Tufts University and a Master's Degree from Brown University. Legal Requirements Tokens on the Ethereum blockchain and smart contracts are nascent technologies. The application of existing laws to new technologies is often unclear. The laws that may be implicated by the TokenDraft platform and tokens are numerous given its worldwide reach. As a result, the legal and regulatory issues surrounding the TokenDraft Platform and TKD tokens are complex and undefined at this time. As these issues are settled, modifications may need to be made to the TokenDraft Platform and TKD tokens to comply with applicable law.