From an economic perspective, the Star Token shall essentially provide a Star with a digital means to better engage with its fan community. To this end, Star Tokens may provide Users with one or more specific access, engagement, or interaction functionalities for products or services. We call these benefits Functionalities.
While the Issuer has the option to define an initial Star Token Functionality at the time of its generation, the Issuer can also do so at a later point in time. The Issuer may also add additional Star Token Functionalities over time to increase the inherent value of existing Star Tokens. The appeal of the Star Tokens lies exactly in the fact that the specific Star Token Functionalities are not conclusively defined at the time of their issuance but can be adapted based on the needs of the Stars and the demand of the Star Token holders.
The Company will ensure at all times that the Star Token Functionalities selected by the Issuer will fall into one of the pre-defined Functionalities Groups and be compliant with the following restrictions as defined in the Fyooz Issuer Terms:
- From a legal perspective, the Issuer may never associate any Star Token Functionalities with a Star Token that would be illegal or that would lead to a copyright infringement or a misappropriation of a person’s rights of publicity.
- From a regulatory perspective, the Issuer may never associate any Star Token Functionalities with a Star Token that would lead to a reclassification of the Star Token as an Asset Token or Payment Token.
Whenever an Issuer wishes to add a new Star Token Functionality to an existing Star Token, he will be required to fill out an application form (“Application Form”) and send it to the Company for review. In this Application Form, the Issuer can either select an existing Star Token Functionality from a list that is provided by the Company or propose a new Star Token Functionality. The Company will then decide whether the selected Star Token Functionalities meets the legal and regulatory requirements defined in the Fyooz Issuer Terms.
What kind of Functionalities come with Tokens?
According to the Fyooz Issuer Terms, the Star Token Functionalities can be broadly divided into three groups which are pre-defined by the Company. All of these Functionalities Groups have in common that the essential function of the Star Token is to allow a Star to better engage with its fan community. Accordingly, there will be no payment functionality and no commercial rights (e.g. a right to profits or a revenue stream) connected to a Star Token. The value (if any) of a Star Token will source in the emotional value for a “fan” having a digital connection to his Star as set forth below. Before we take a look at the various Functionalities Groups, it is important to point out that Star Tokens are not transferred to another address when a specific Star Token Functionalities are accessed. In contrast to digital vouchers, Star Tokens are not consumed or “used up” when a Star Token holder accesses a Star Token Functionalities. This means that the Star Token holder does not require to pay any form of consideration to the Issuer in order to access to a Star Token Functionalities.
Star Tokens may enable the User to buy a certain product exclusively, with a discount, or before it will be offered on the general market. In many of these cases, the Star Token will take the position of a loyalty program. Examples might include:
- A sports brand creates a limited sneaker line which can only be bought (in FIAT) by Users who hold the respective Star Tokens;
- A bar offers a special seating section to Users who hold the respective Star Tokens whenever they visit;
- An artist invites Users who hold the respective Star Tokens to an exhibition, once a year;
- A musician offers Users who hold the respective Star Tokens a certain number of music lessons per year at a special rate;
- A circus offers ticket pre-sale to Users who hold the respective Star Tokens;
- A marketing expert offers a podcast exclusively to Users who hold the respective Star Tokens; or
- A film production studio gives Users who hold the respective Star Tokens access to the movie stream one week ahead of the official premiere.
Star Tokens may enable Users to participate in polls or votes with regard to a decision to be made by the Issuer or the underlying Star or use other game-design elements and game principles to enable the User to engage with the Star. Examples might include:
- Users who hold the respective Star Tokens can be part of the design process of a consumer good;
- Users who hold the respective Star Tokens can participate in a poll regarding a concert location;
- Users who hold the respective Star Tokens can earn points by engaging with their Star; the points can be exchanged against merchandise products;
- Users who hold the respective Star Tokens select the colors of the new jersey of their favorite sports team.
Star Tokens may enable Users to be informed about certain events that are related to the respective Star (one-way communication) or to directly or indirectly interact with the respective Star (two-way communication). Examples might include:
- An actor offers Users who hold the respective Star Tokens to participate in a video chat;
- A marketing consultant allows Users who hold the respective Star Tokens to sign up for a consultation in his area of expertise;
- A musician invites Users who hold the respective Star Tokens to attend a personal meet and greet; or
- A movie star allows Users who hold the respective Star Tokens to be the first to learn about upcoming events such as a new movie.
While all Star Token Functionalities fall into one of the three Functionality Groups described above, their exact configuration will be different in every situation. In some cases, the Star Token Functionality may be used only once per User. In other cases, the Star Token Functionality may be renewed after a defined period of time and may be used again.
The Star Token may also provide continuous access to a service, no matter how long or how often it has been used or transferred. The Issuer can further limit the number of available products and services and provide them on a “first come, first served” basis. The Issuer may also determine that a certain Star Token Functionality is dependent on a defined number of Star Tokens owned by the owner.
- Internal Document “Unterstellungsanfrage Fyooz” MME Legal AG (Date: 05 February 2020).