mogul Mogul Studios | White Paper V0.9 Mogul Studios | White Paper V0.9 MOGUL STUDIOS Liquid Film Financing White Paper v0.9 [email protected] mogul mogulstudios.com | 2 Mogul Studios | White Paper V0.9 Disclaimer The introduction and description of the basic condition of the project in this document is an invitation to the general public. It is not and cannot be regarded as an investment or declaration of commitment to any specific or unspecified subject. It is neither nor can it be considered as a specific team’s project. It’s not a commitment nor a guarantee. The Mogul team reserves all rights to modify, delete, add, abrogate, and interpret related behaviors of this document. Those who have the intention to participate, invest, and cooperate in this project must clearly understand the full risks of this project. Participants shall enter into a written cooperation agreement for participation in this project. The cooperation agreement shall clearly and completely indicate the cooperation, participation or investment. Participants should indicate in written or verbal form that they have fully understood and accepted all the risks that the project has generated or may have, and take corresponding responsibility. mogul mogulstudios.com | 3 Mogul Studios | White Paper V0.9 Mogul will also help optimize the film funding and production process Executive by enhancing financial transparency at every level. No longer will it be possible for filmmakers to hide exorbitant expenses behind the black Summary box of “Hollywood accounting.” Now, investors can ensure things are The movie business has always been done right, with their interests as about making dreams come true -- investors and film fans are always not just the dreams of viewers in considered first. search of action and romance, but the dreams of the people creating those Mogul is powered by a revolutionary adventures as well. The movie business new Token Model that makes us the is supposed to be a place where a world’s first company to provide a dreamer can find success at any moment, plausible path to profitable film and where inspiration can collide with production in perpetuity. opportunity to bring incredible ideas Under our model, there’s no end to life. to the amazing films we could make. Mogul Studios is a democratized Together. film investment platform designed to make movie-making exciting and creative once again. It will open the movie business to a wider array of people than ever, and put that collective passion to use improving the selection of films for funding and production. With Mogul, any investor can participate in and recoup profit from Hollywood-scale filmmaking without the need for Hollywood connections to get a foot in the door. And since Mogul is committed to making the movie business fun and rewarding again, investors will also have access to exclusive perks and incentives such as production updates, behind-the-scenes set visits, memorabilia, minor on- screen roles, and more. mogul mogulstudios.com | 4 Mogul Studios | White Paper V0.9 Furthermore, Hollywood studios have significant advantage over typical The Villain investors due to having access to large and cheap sources of capital, the ability to spread risk over a diversified and vertically integrated The Old Guard platform. Producers have an incentive “Where did all the money go?” to work with the studio system, regardless of whether it is the best It’s a common question among early fit for the project. film investors, but one they quickly learn to stop asking. Though it’s As a result, investors that do reasonable to wonder what happened to manage to get access into Hollywood millions in gross income, traditional film finance are left with poor film funding and production processes transparency and a misalignment with have never seemed to produce a truly their interests. The system is then satisfying answer given the weak defined by a lack of artistic control regulatory framework. as well as poor financial returns. Investors and content consumers with an eye for quality should to be able to make a killing in an industry that regularly rakes in dozens of times the budget of a particular film, and they ought to be able to have fun while doing it. Instead, the scourge of “Hollywood accounting” often leads to large sums of money being either squandered away or misappropriated by the select few with insider access and control. Behind this barrier, film production and distribution have become seemingly bottomless money-pits riddled with horror stories of how investors left poorer than they should have. mogul mogulstudios.com | 5 Mogul Studios | White Paper V0.9 Mogul also democratizes the film selection process, helping to stave The Hero off overly conservative or self-same choices by insulated studio executives and putting artists and film fans first. Screenwriters can receive multiple The Power of the times the industry-standard share of profits in exchange for their hard Crowd work, helping to bring in better quality scripts. And with our Panel of Mogul is a platform created industry experts vetting all proposals specifically to fix the film industry. before voting begins, investors can Its combination of democratic input be sure that any film they select for from investors, unprecedented artistic merit always also has a access to film productions, and a realistic path to profit. revolutionary new token model make it uniquely well suited to achieve that It’s time for something that gives goal. By investing in Mogul Studios, the people who love film investors not only recoup significant more control over the profits, they also help reclaim companies that make the dream that once was the movie films -- and that business. solution begins with an understanding of Mogul uses an industry-first the larger film business- and token model to power ecosystem its blockchain-based platform, that is allowing investors to retain the set to be liquidity of their investment, check upended by on a production’s spending as it Mogul. progresses, and receive ongoing dividend payments from films already released. Mogul is the first film funding platform to introduce real accountability for a production’s spending -- and thus, the first to incentivize lowered overall spending, in the long term. mogul mogulstudios.com | 6 Mogul Studios | White Paper V0.9 Transparency: Artists can be fickle, leaving it to the production company Why to ensure that a project will actually get finished. With the Mogul model, investors have the ability to check up on how a project’s spending actually Blockchain went, and to avoid repeating financial mistakes that unnecessarily drain The beauty of blockchain tech in budgets. Mogul allows investors to the context of film is that the most better curate teams than prior models, important strengths of blockchain are slowly reforming the industry toward also the most important weaknesses frugality over the traditional excess. of legacy movie funding. The movie When profits come in, investors can industry needs specifically the view their income within their Mogul abilities blockchain can provide, and dashboard, and decide what to do with with Mogul’s revolutionary Continuous it from there.. Organization model (detailed below), Mogul can continue to raise funds and Liquidity: The MOGL Token is a produce new films on an ongoing basis. liquid asset that allows investors both direct redemption and trading via Democratization: With Mogul, any secondary markets. This gives Mogul accredited investor can invest in investors more freedom and security in both “indie” and Hollywood-level film their investment. production. There are no gatekeepers, nobody to have known since childhood, and nobody to have met at an Ivy League university. Our diverse base of investors will also make a real contribution to the future of film by helping to decide which films receive funding through the Mogul platform. mogul mogulstudios.com | 7 Mogul Studios | White Paper V0.9 The Token Model What Makes Mogul’s revolutionary new token model makes us the world’s first Continuous Organization, meaning that Mogul is the first tokenized film studio Mogul with a clear vision of how to make film production profitable for everyone involved while still generating Different the funds for film production in perpetuity. Our token model allows us to provide total liquidity to investors without endangering Mogul’s Financial Returns solvency as a fund or a production company. Additional details below. Investment in the Mogul film fund entitles the investor to dividend payments as Mogul-funded films earn Rewards and Incentives a profit and capital appreciation as Mogul tokens become more valuable. Mogul will offer a selection of Mogul investors will have access to rewards for investors, including on- liquidity through redemptions and set tours and more. Additional details trading on secondary marketplaces. below. Additional details on the Mogul business model are below. The Mogul Showcase Mogul will provide a Showcase where any Mogul investor may use non- fungible MOVIE Tokens to cast votes in favor of funding a particular project. At the end of the voting round, the film proposal with the most support receives the funding it requires, and a new round of voting can begin. Additional details on film selection and the investor voting process can be found below. mogul mogulstudios.com | 8 Mogul Studios | White Paper V0.9 then choose without stress from within this selection of possible The Voting investments. A prospectus with financial planning will be available for all films under consideration for funding, along with a concept Process trailer designed to give investors a more qualitative understanding of a Investors may expend single-use, project. non-fungible MOVIE Tokens within the Mogul Studios platform that signify a Once the Panel has approved a vote for the film to be funded through selection of 3-5 films, investors Mogul.