Abstract
This proposal explains the funding needed and the revenue opportunities available through Crypto Unicorns (CU) and Shadowcorns (SC) product licensing and entertainment projects.
Motivation
Securing product licensing deals and negotiating shows (Streaming/TV/Digital) can take time. However, there is a lot of interest from toy companies, apparel brands, studios, and production companies in Crypto Unicorns (CU). If we are successful, these deals could make money for the community through royalties or revenue sharing. Half of this income will buy back and burn $CU tokens, making them more valuable. The other half will go to the CU treasury.
Currently, this is the only proposal that has a real chance to bring value to $CU token holders in the near future. That is why these product licensing and entertainment deals are so important for the Crypto Unicorns community. By creating new ways to make money through products and entertainment, we can increase the value of $CU tokens and make sure token holders see real benefits. This also helps make Crypto Unicorns a well-known and liked brand. If we do not go after these opportunities, we might miss one of the best ways we have to grow and make money in both the Web3 space and traditional consumer markets. Gaming didn’t work but perhaps like other projects (e.g., Pudgy Penguins) we can see success here.
Details
Steve Silverstein has been working to secure product licensing and negotiate a deal for an animated show. So far, 13 toy companies and 15 studios have shown interest in working with CU and SC IP. An existing licensing agreement is already in place with Neonific, a lifestyle products company specializing in LED neon items, guaranteeing $1,000 per year plus a 12% royalty on sales.
Completing these licensing deals could lead to retail distribution and shows with a global audience, creating ongoing revenue. As these products come to market or shows are produced, individual NFT holders may also have the opportunity to license their unicorns, earning additional royalties along with the DAO.
To expedite the chances of securing toy licensing deals, a self-produced limited run of toys is planned. Successful sales as a proof of concept could help close larger toy deals sooner. This could place products in retail stores by the 2025 holiday season. There is also growing interest from derivative licensing agencies focused on Web3 IP, which creates further opportunities in games, products, comics, books, and media.
Revenue Opportunities The following are some of the revenue streams we are working towards from product and entertainment licensing. This process starts with the small runs of self-produced pop vinyl and blind box toys and parlaying the sales into the larger licensing deals, including:
- Product Licensing
- Walmart US Toy Assortment Distribution: 200 units/store (figurines/plush/collectibles) across 2,000 stores (assuming distribution to half of Walmart’s 4,000+ stores), priced at $25 each, yields an estimated $500,000 net revenue per inventory turnover (toys at Walmart typically turn over 3-4 times per year).
- Hot Topic Vinyl Pop Assortment: 20 units/store to 675 stores at an average price of $29.99, with a 50% sell-through rate = $20,000 net revenue.
- Five Below Blind Box Toys: 20 units/store to 1,700 stores at an average price of $5.99, with a 50% sell-through rate = $50,000 net revenue.
- Entertainment Licensing
- Streaming Platform License: Upfront licensing fees for an unknown IP animated show typically start at $50,000 per episode. Assuming $25,000 per episode for a 10-episode series, this could yield $250,000.
- YouTube Digital Series: After achieving 1,000 subscribers, potential ad revenue = $25,000 per year.
- Cross-Promotion: Show distribution could substantially increase product licensing revenue.
Timelines
In November and December 2024, we will finish and ship vinyl toy production to be ready for Amazon sales by January 2025. Revenue from these vinyl toys will be used to fund the production of blind box toys in Q1 2025. During Q1 2024, we will also work on expanding the Neonific product assortment. From November 2024 to March 2025, we aim to complete studio pitches to secure show deals or derivative licensing deals, including shows, comics, books, and games. The blind box toys will also be shipped during this time. Between November 2024 and December 2025, we plan to close product licensing deals for online distribution by Q4 2025 or Q1 2026, with retail distribution targeted for the 2026 holiday season.
Budget Requested
- Steve Silverstein’s Time: @$75/hr for 20 hours/week (≈ $75,000/year, though costs may vary based on actual hours).
- Nov 2024: $20,000 for vinyl toy production for Amazon sale, plus $39/month for Amazon shop. Estimated net revenue to DAO at full sell-through: $15,000.
- Q1 2025: Conditional on vinyl toy sales performance: $25,000 for blind box production.
- Feb 2025: $2,500 for attending Kidscreen Summit in San Diego (Feb 9-12, 2025). Attendance is not required but could facilitate valuable in-person studio and producer meetings to accelerate discussions.
Total Budget: $125,000 (including toy production); $78,000 (excluding toy production).
Conclusion
There is strong interest in CU products and entertainment, which could create a steady revenue stream for the DAO treasury and CU holders. Achieving even one or two substantial deals could result in meaningful revenue. As a new IP, cultivating interest takes time, but we are reaching a point where major licensees are aware of the brand, and conversations are advancing. Despite the crowded landscape of unicorn-themed IPs, Crypto Unicorns stands out for its unique appeal, particularly in creating unicorns that resonate with boys and girls.