The team at SpankChain is looking to address issues faced currently by the adult entertainment industry, such as the lack of mainstream financial service provision and the fact that entertainment performers are being charged high fees by middle men (e.g. on cam site operators) due to lack of competition.
SpankChain is building a blockchain-based framework to enable performers to earn fees directly and return self-sovereignty.
The SpankChain platform will consist of three layers: Core, Services and Applications.
The Core layer at the bottom will include a Performer Registry, Payment Channels and a Vynos wallet interface. The Services layer in the middle will consist of functionality for indexing, payment channel hubs, age verification, advertising and an interface builder. The Applications layer at the top will consist of partner sites, a camsite (including one run by SpankChain themselves) and a content marketplace.
The core layer is where the smart contracts and infrastructure for the ecosystem reside. It will consist of an Ethereum-based performer registry which can be linked up to IPFS for additional data. It will furthermore have a payment channel contract, using the Machinomy payment channel library and an Ethereum wallet that supports payment channels, Vynos. The infrastructure at this level will be open source and free.
In contrast, the Services layer will offer paid services. This layer includes the Payment Channel Hub, which is the main economic driver of the platform. It allows for grouped payments to be processed and settled on the blockchain at the end instead of each individual transaction being posted to the blockchain. Other services at this level include age verification, live video streaming infrastructure, an advertising network, affiliate network for the creation of an open market for promotional revenue sharing, an index/search API and an interface builder.
The Applications layer sits at the top and will consists of user interfaces. An adult content market place is being developed in collaboration with district0x, called The Red Light District and the intention is for third party developers to build apps on the platform. SpankChain will be launching its own cam site as well.
The SpankChain platform uses two tokens: SPANK and BOOTY. The SPANK token is used for staking and governance. By staking SPANK in the SpankBank staking contract the BOOTY token is earned. This BOOTY token can be used by performers and platform businesses to pay their fees. Users can pay (tip) performers with BOOTY, although it will also be possible to pay in ETH or any other ERC20 token.
The amount of BOOTY generated and distributed to stakers by the smart contract is dependent and automatically adjusted based on the amount of BOOTY being used in the system. The amount of BOOTY earned by stakers is dependent on the duration of staking.
SpankChain will also introduce Proof-of-Spank. This is a new verification game used to verify that performers are indeed who they are, in order to ensure that they comply with age verification. Every ten minutes a performer is selected at random and has to spank themselves a specific number of times. SPANK stakers can then vote whether the performer indeed matches their profile. In order to continue receiving BOOTY for their staked SPANK, stakers will have to participate in a certain number of votes per month.