A Novel DeFi&Web3 Organization Last
Update: June 13,2022*
DZ LABS is a novel DeFi organization that uses the Web3.0 organizational structure to operate. The novels presented through the DZ LABS DAO will receive the platform's robust operation, allowing excellent works to be sold directly to users and expanding the economic benefits of novels. DZ LABS DAO is motivated by Token $16DAO. Token holders can participate in the governance of DZ LABS and receive dividends from the operation of DZ LABS' novels, including the total revenue obtained from novel-related IP licensing, NFT sales, and movie box office, GameFi, etc.
When looking at China's online literature market, the China Audio-Video Copyright Association released the Development of China's Online Copyright Industries(2018) report, stating that China's online literature reached 24.42 million online literary works in 2018. The latest statistics from data agencies show that the compound growth rate of the number of novels reached 34% from 2016 to 2021.
China has over 17.55 million online literature writers and a rich reserve of works, driving trillion-dollar market growth in IP adaptations for film and television works alone. In February 2021, data from the 2019-2020 Annual Online Literature IP Film and TV Drama Adaptation Potential Assessment Report showed that the total output value of the cultural industry driven by online literature IP in the previous two years exceeded $1 trillion.
2.2.1 Inequality in income distribution
According to the 12th Writers' Income List of China Audio and Video Digital Publishing Association, the income of online authors shows a pyramid structure. A small number of writers at the top of the pyramid received the most revenue in the entire online ecology. The 610,000 writers in the middle earned a few hundred RMB guaranteed income. The remaining 16.94 million writers had no income. In other words, 96.5% of the writers have no income in the Chinese online ecology.
2.2.2 Few opportunities for adaptation to film and television
According to data agency Yien Data, only 30 online literature were adapted into TV series in 2018, and only 35 would be adjusted in 2019. Although the number of users on video streaming sites has been increasing, there are few opportunities for online literature to be adapted for film and television.
2.2.3 Loss of copyright by the author
The Chinese online platform is in a monopoly status. The platform always requires exclusive authorization for online authors who want to publish their works on the forum. The minimum duration authorization is five years, the lengthiest term at 50 years after the author's death. Moreover, during the authorization period, the platform has the right to modify the work at will, distribute, sublicense and sell the copyright according to commercial demands. Authors have no rights in the decision-making processes.
2.3.1 Significant amount of users
In February 2022, the 49th Statistical Report on the Development of China's Internet showed that by the end of December 2021, the total scale of Chinese online literature users reached 502 million, accounting for nearly 50% of the number of Chinese Internet users. According to the data of China's largest online literature platform, Yuewen Group, Over 60% of qidian.com users are comprised of Generation Z, which refers to users born after 1995. Generation Z is the main force of the new consumption pattern and the advocates of the crypto economy.
In October 2021, the Chinese Writers' Association released the report on the Development of International Dissemination of Chinese Internet Literature in Wuzhen, Zhejiang Province. The report shows that more than 10,000 works of Chinese Internet literature have been distributed overseas, with more than 100 million users reading through foreign websites and APPs, covering most countries and regions in the world.
2.3.2 Business opportunities
Solving operational efficiency
The number of completed novels in the Chinese market alone exceeds 24 million. While the number of books is growing, there is no organization to commercialize them and no such service in the market. DZ LABS has no clear competitors in this field and benefits from the development of web3. DZ LABS adopts the DAO method, which will significantly improve the efficiency of novel operations and help more writers monetize.
China's online literature consumption users exceed 500 million people, and overseas consumption of Chinese online literature users exceeds 100 million. Given users' massive demand, more than 96.5% of writers have no income. Their novels have barely had chances to be adapted into movies and receive commercial payments. Online literature platform unfair terms make writers lose the copyright of their works. The platform monopolizes novel copyright for at least five years, at most 50 years after the author's death.
DZ LABS returns the choice of online literary works to 600 million users, who can choose what to read based on their preferences rather than relying on the platform recommendations that come from their streaming algorithm.
DZ LABS returns the copyright to the writers, allowing them to become DAO members and letting them drive the DAO organization to grow.
DAO's mission is to drive the growth of DZ LABS, to absorb more excellent novels into the ecosystem, and to make these novels continue to generate cash value and cultural value.
DAO members consist of people who hold 16 DAOToken. DAO members include fiction writers, product managers who drive the operation of DAO, and DZ LABS investors, and members can participate in all decisions regarding the development of DZ LABS.
DAO members are entitled to all of DZ LABS' revenue-sharing benefits, can include:
Governing Token Premiums
All members who join the DAO hold a 16DAO governance Token, which is issued by the DAO for free in the early stage and can be purchased by members at a low price after the Token is listed. As the DZ LABS ecology develops and the value storage capacity becomes more extensive, the premium of the 16DAOToken will increase, and DAO members who hold the Token in the early stage will be able to enjoy a higher premium.
When DAO promotes novels to make movies and do IP co-branding, these commercial activities cover a large amount of income from film and television box office, licensing transfer fees, advertising fees, etc. These revenues will be managed directly by DAO, which will give all members dividends in cash according to the then fiscal year.
Any element in the novel can be issued NFT, DAO members can enjoy the profit share of NFT sales or even get NFT airdrop for free, and when NFT is on the shelves of Opensea, DAO members can sell these NFT to earn revenue.
Science fiction novels work more smoothly on GameFi. They give the game its fundamental culture and complete worldview. When promoting these novels to GameFi, DAO members can enjoy the early Token airdrop, NFT airdrop, and even participate in the Token purchase allowlist at the earliest stage of these games. Their Token and NFT premiums will bring more revenue to DAO members when the games are launched.
The DZ LABS Treasury exists to incentivize DAO development and growth and ensure more significant business benefits for DAO members. The managing members of the TREASURY are elected by the DAO organization and re-elected each fiscal year.
There are three primary sources of income for the Treasury. The first is holding 52.6% of the original number of 16DAOToken. DAO can sell 16 DAOToken for cash without affecting the coin price band; the second is the return on investment obtained when DAO uses the funds to invest in other projects; the third is the external financing received by DZ LABS cash.
Treasury has the responsibility to ensure the healthy operation of the funds, promote the development and growth of DAO, invest a reasonable percentage of the funds in other projects, and support the development of projects in DAO.
Treasury is obliged to disclose details of all financial data on a monthly, quarterly, and fiscal year basis. When funds come in or go out, the Treasury is obliged to disclose their details to DAO members.
The primary role of the 16DAO Token is to promote the development and growth of the DAO, with the Token serving as the only pass for DAO governance (minting has been completed in Ether). Moreover, Treasury will take a portion of the revenue back to the market to buy back the 16DAOToken according to the operational demand so that the holders can enjoy the profit and expand the number of treasury Tokens at the same time.
Token circulation is divided into two stages. In the first stage, 8,000,000 pieces will be added to the liquidity pool and shelved in the exchange circulation, while Treasury will hold 8,888,888. The tokens will be used for project financing and DAO member recruitment incentives in the second stage.
DZ LABS guild in science fiction, action novels prioritize the GameFi direction. GameFi mainly has two ways to expand. The first is to license the novels to other game producers; the second is for DAO to attract talents to create games operated by subDAO.
The elements in the novel turn into NFT, shelves to Opensea, and other mainstream NFT trading markets for sale. One of the DZ LABS DAO books is being created into a series of NFT, and is expected to be fully released in 2022 Q3.
3.2.3 IP Licensing
The novels can be licensed to other streaming platforms and co-branded with physical non-label products.
DAO promotes licensing novels into online movies and the adaptation of feature films.
Among the two novels signed by DZ LABS in Q2 2022, the first novel, 《核桃记》, has been completed, with a total of 301,000 words, and its electronic version has been uploaded to ByteDance's fanqie novel platform. The female protagonist in the novel holds a painting named Catwomen, for which DZ LABS has created NFT according to the commercial plan. The first 6 NFT have been put on Opensea. The novel is in contact with presss and plans to publish physical books, which has strengthened DZ LABS 'continued influence in the market.
The second novel《星图绘制员》is planned to be three. The first novel has been finished, and members of DZ LABS DAO are checking the structure and content of the novel. It is expected that Q4 will be officially put on the domestic novel reading platform in 2022.
The first batch of NFT developed by DZ LABS DAO based on the novel《核桃记》has been online to Opensea. Artists in DZ LABS DAO plan to release 50 NFT in total in Q4 2022. This SERIES of NFT is a high-priced series of paintings Catwomen collected by the heroine in the novel 《核桃记》.
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