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Token Stars, the new way to finance Hollywood movies through a blockchain

The Hollywood film production company, Mogul Productions, announced on February 18 the launch of a platform of the same name, which will allow filmmakers and film fans to choose which films will obtain financing with the new Stars token.

The experts behind the production company, assure that it is a decentralized financing platform of films that “will give everyone a voice in the creative process.”

In this sense, Mogul will put into operation a platform where filmmakers and film fans can register to create an account that will allow them to enter the white list and in the future access the native token of the platform called Stars. Then they can watch movies at a showcase and use the Stars to vote for the film projects to be financed.

Fans bet Stars tokens to vote on which movies they want to get funding. Mogul uses a quadratic voting system to make each vote cast by the same user exponentially more expensive to prevent users rich in STARS from having undue influence over the process.

Gagan Grewal, CEO of Mogul Productions.

The Mogul platform will also feature a non-custodial purse and is designed so that users can manage Stars tokens, once the main network is operational.

According to Grewal’s statements to the press, in the film industry there is no transparency about the origin of the financing, and it is not even often known how the profits are distributed. For this reason, they chose quadratic voting, which is a voting method that allows people to rate on the strength of their opinion on company projects.

In case a project is approved, the filmmakers will be supervised by the Mogul team, as well as by a fan base that guarantees, according to the production company, the success of the film after its distribution.

Grewal also explained how complex it can be for independent artists to finance film projects.

Mogul Productions’ “blockchain-based” platform seeks to support independent film projects. Source: bissartig / pixabay.com

Faced with this reality, Grewal and the production company he runs consider that “there is an almost insatiable demand for excellent content, and yet it is incredibly difficult for independent creators to get their stories financed and made into films.

The main streaming platforms have experienced global audience peaks in 2020, reaching a generation of USD 50 billion and it is a sector that is forecasting a compound annual growth rate of 21% from 2021 to 2028, according to Grand View Research.

On February 11, Mogul Productions announced that it will be integrated into the Chainlink blockchain network. The goal of the alliance is “to provide more transparency and accessibility to film production and financing,” says a statement from the production company.

Mogul wants to “bring off-chain film budget and profitability data to the blockchain, enabling the disbursement of a fair market profit share, audited with investors in a more efficient, transparent and accurate way.”

Likewise, the producer informed that they will make use of a decentralized price feed and the oracles of Chainlink ether / USDC, to guarantee that users receive “fair market exchange rates” on all ether (ETH) earnings derived from calculated budgets. in dollars.

It is not the first time that technologies of this type have been applied in the film industry. In fact, CriptoNoticias reported a couple of years ago that actor Johnny Depp signed an agreement with the entertainment startup TaTaTu, with the purpose of developing concepts and producing digital content based on crypto-asset technology. However, the Tatatu token has been abandoned since 2019, according to information from CoinMarketCap.