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 Utilities.
While the Issuer has the option to define an initial Star Token Utility 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 Utilities 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 Utilities 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 Utilities selected by the Issuer will fall into one of the pre-defined Utilities Groups and be compliant with the following restrictions as defined in the Fyooz Issuer Terms:
Whenever an Issuer wishes to add a new Star Token Utilities 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 Utilities from a list that is provided by the Company or propose a new Star Token Utilities. The Company will then decide whether the selected Star Token Utilities meets the legal and regulatory requirements defined in the Fyooz Issuer Terms.
What kind of Utilities come with Tokens?
According to the Fyooz Issuer Terms, the Star Token Utilities can be broadly divided into three groups which are pre-defined by the Company. All of these Utilities 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 Utilities Groups, it is important to point out that Star Tokens are not transferred to another address when a specific Star Token Utilities are accessed. In contrast to digital vouchers, Star Tokens are not consumed or "used up" when a Star Token holder accesses a Star Token Utilities. 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 Utilities.
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:
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:
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:
While all Star Token Utilities fall into one of the three Utility Groups described above, their exact configuration will be different in every situation. In some cases, the Star Token Utility may be used only once per User. In other cases, the Star Token Utility 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 Utility is dependent on a defined number of Star Tokens owned by the owner.
The following table provides an overview of possible configurations of Star Token Utilities:
Possible configurations of Star Token Utilities. Source: Fyooz internal Legal Document, signed MME