# Security Token Model - Summary

## DREAM CHANNEL TOKEN MODEL

To be 100% clear, investors are not purchasing film frames. These are merely used as the model to calculate the number of digital security tokens to be issued. This number is divided by the production budget for the feature film and series to derive an issue price. The model is aimed at giving investors a clear and transparent model for ownership.  Dream Channel has a three token model to maximize investor returns and audience engagement.    

1. **DIGITAL SECURITY TOKEN** 

.Digital securities have the same rights as shares

2. **DICE / AI DREAMS - 'Play To Earn' Game Token** 

Players play to earn DICE (aka AI DREAMS) , Dream Channels game token.

3. **NFT  & DAO TOKEN** 

Audiences use game tokens to level up inside Dream Channel TV and also to purchase NFTs. 

**More Detail:** 

## **1. SECURITY TOKEN** 

**(i)  Calculation** 

Once again to be 100% clear, film frames are used a means to calculate the number of digital securities to be issued . Investors are NOT purchasing film frames. 

The calculation is as follows : 

<table data-header-hidden><thead><tr><th width="167"></th><th width="89"></th><th width="111"></th><th width="96"></th><th></th></tr></thead><tbody><tr><td>CALCULATION </td><td>#Mins </td><td>X  seconds </td><td><em>X Frames per second</em></td><td>Digital Securities</td></tr><tr><td>Digital Series x 25 Episodes </td><td>60</td><td>X 60</td><td>25</td><td>2,250,000</td></tr><tr><td>Feature Film </td><td>120</td><td>X 60</td><td>25</td><td>180,000</td></tr><tr><td>TOTAL </td><td><br></td><td></td><td><br></td><td>2,430,000 </td></tr><tr><td>TOTAL SECURITIES </td><td></td><td><br>x 100 </td><td><br>/0.5 </td><td><br>486 Million Digital Securities </td></tr></tbody></table>

**(ii) Budget**&#x20;

The price per share is calculated as from the total budget required to produce&#x20;

a) the series, and b) the feature film. &#x20;

The digital series will be funded first. The feature film will be the subject of a future share issue (from the allocated shares) at a higher price to fund the feature.&#x20;

<table data-header-hidden><thead><tr><th width="162"></th><th width="119"></th><th width="123"></th><th width="123"></th><th></th></tr></thead><tbody><tr><td>DREAM FRAMES </td><td>#Frames </td><td>Cost Per Episode </td><td> <em>TOTAL BUDGET</em></td><td>Price Per  Share</td></tr><tr><td>25 Episodes </td><td>2,250,000</td><td>360,000</td><td>9,000,000</td><td>$4</td></tr><tr><td>Feature Film </td><td>180,000</td><td>9,000,000</td><td>9,000,000</td><td>$50</td></tr><tr><td></td><td><br></td><td></td><td><br></td><td><br></td></tr><tr><td></td><td></td><td><br></td><td><br></td><td><br></td></tr></tbody></table>

**(iii) Ownership Structure**&#x20;

The financial model  splits ownership of films 50/50 with audiences, while giving the projects flexibility by including incentive pools for influencers and A list actors&#x20;

<table data-header-hidden><thead><tr><th></th><th width="116"></th><th width="127"></th><th width="97"></th><th></th></tr></thead><tbody><tr><td>CALCULATION  </td><td>#Frames </td><td>#Shares</td><td>/0.5</td><td></td></tr><tr><td>Total Supply </td><td>2,430,000</td><td>243,000,000</td><td>486,000,000</td><td><br></td></tr><tr><td>OWNERSHIP</td><td><br></td><td><br></td><td><br></td><td><br></td></tr><tr><td>Audience  </td><td>50%</td><td><br></td><td><br></td><td><br></td></tr><tr><td>Series Producers </td><td>30%</td><td><br></td><td><br></td><td><br></td></tr><tr><td>Early Stage investors</td><td>10%</td><td><br></td><td><br></td><td><br></td></tr><tr><td>Incentives    </td><td>10%</td><td><br></td><td><br></td><td><br></td></tr></tbody></table>

**(iv)  Initial Offer**  &#x20;

The initial offer is to fund the first 5 episodes of the digital series.    So 5 episodes x 60 minutes x 25 fps = 450,000 digital securities .&#x20;

<table data-header-hidden><thead><tr><th width="183"></th><th width="123"></th><th width="115"></th><th width="125"></th><th></th></tr></thead><tbody><tr><td>CALCULATION</td><td>#Securities </td><td></td><td>US$ Price </td><td> Total</td></tr><tr><td>5 Episodes </td><td>450,000</td><td><p>Fixed Price</p><p>3 Months</p></td><td>$4</td><td>$1,800,000</td></tr><tr><td>Sale Duration </td><td>3 Months</td><td>March 1st  2025 > </td><td><p> 30 June</p><p>2025 </p></td><td><br></td></tr><tr><td></td><td><br></td><td><br></td><td><br></td><td><br></td></tr><tr><td></td><td></td><td><strong>/05</strong></td><td>P<strong>rice</strong></td><td></td></tr><tr><td>x 100</td><td>4,500,000</td><td><p></p><p>9,000,000<br></p></td><td>$0.2</td><td>$1,800,000</td></tr><tr><td></td><td></td><td><br></td><td></td><td></td></tr></tbody></table>

**(v) NFT Token 'Air Drop'**

At the conclusion of each Dream Channel episode >&#x20;

* fragments (or frames) are air dropped to owners as collectibles&#x20;
* Collectibles can be traded on a secondary market.&#x20;
* Collectibles have an embedded smart contact whereby any re-sale of the.frames has a 5% royalty that flows back to the Dream Channel, a dividend to owners

Ownership  of 'core' NFT's gives owners a voting right in the Dream Channel DAO.&#x20;