Future Earnings Investment Model

BitCloud is evolving towards a platform that enables creators to sell portions of their future earnings to early investors, similar to how athletes sell portions of their future earnings to investment companies.

Key Points:

  • Current Investment Structure:

    • Uses a bonding curve mechanism where coin prices increase with demand
    • Early investors benefit exponentially from price increases
    • Value decreases exponentially when coins are sold
  • Platform Evolution Direction:

    • Moving away from reputation-based betting
    • Trending towards future earnings model
    • Similar to existing ISA (Income Share Agreement) platforms
  • Big League Advance Model Reference:

    • Athletes give away part of future earnings
    • Companies bet on talent early
    • Provides upfront capital for future income share
  • Potential Platform Features:

    • Creator-audience value transfer system
    • Mechanism for selling future earnings
    • Tools to incentivize audience investment
  • Current Challenges:

    • Need for improved verification processes
    • Requirement for backdoor implementation
    • Questions about long-term sustainability of current model
  • Expected Transition:

    • Will likely pivot to resemble existing platforms
    • Focus on creator-audience value exchange
    • Evolution towards more traditional investment structure
SS

Steph Smith

Steph Smith is the host of the a16z podcast, focused on highlighting the most important trends within technology. Before joining Andreessen Horowitz, Steph led HubSpot's Creator Program, including their growing Podcast Network. She was also a writer for the Hustle.

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