BitDAO Funding Proposal Annex

Funding Proposal

This document explores the engagement challenges faced by football fans in accessing memorabilia and decision-making power, the mass adoption opportunity for Web3 in football, and how the GOLball disruption can solidify the ecosystem's hold on the new football memorabilia market. The funding structure for a strategic partnership between GOLball and BitDAO is also detailed in this annex.

Fanbase Problem

Football reflects global socioeconomic disparities, with the top five European leagues dominating the industry's economic engagement and value. This inequality results from excessive event and product valuations and limited accessible experiences. Fan engagement is mainly passive, relying on paid TV subscriptions and open national team coverage.

Current technologies struggle to connect real events and assets with virtual deliverables, creating parallel events that fail to unlock fan base potential. The gap between physical and digital affects monetization, with fan potential lost due to a lack of digital asset-backed products, excessive focus on social media exposure, limited content, match day interaction only, and poor understanding of fans' digital behavior. Football fans in emerging economies face budget constraints and accessibility issues, limiting their ability to monetize football experiences. Bridging the gap between football and fans is essential for capitalizing on millions of engaged fans worldwide.

Over the past decade, centralized finance and investment organizations have increasingly become involved in the top five European leagues, leading to a more business-oriented approach and reprioritizing fan engagement. GOLball's strength lies in its ability to decentralize decision-making over assets and funds through membership tokens, fostering Web3 engagement in the football community and expanding into other sports.

The growing focus on monetization in football has left countless fans feeling marginalized. By integrating blockchain technology and adopting Web3 principles, GOLball bridges existing commercial and geographical barriers, enabling fans to own valuable memorabilia and determine the allocation of priceless assets. This decentralized structure empowers the global football community.

Adoption Opportunity

GOLball recognizes the importance of leveraging existing user engagement platforms to nurture user bases and promote the adoption of Web3 principles and technology, extending the reach and influence of the entire ecosystem.

With a global digital fan base of 3 billion, football is the world's most popular professional sport. By targeting football fans and partnering with LaLiga Santander, GOLball has created over 20,000 blockchain wallets in under three months. This strategy aims to integrate blockchain technology and decentralized structures into football-related assets, becoming a promising onboarding platform for the Web3 ecosystem.

An ongoing reputation crisis in the decentralized ecosystem affects trust in NFTs and decentralized assets. Providing tangible, consistent, and appreciable underlying value to digital assets is crucial for overcoming this issue.

The GOLball Disruption

GOLball's vision and strategy focus on democratizing fan engagement for fans marginalized by the high cost of football events and products and bridging physical and digital experiences. GOLball's inclusive ecosystem delivers fan identity through ownership and decision-making.

GOLball's patent-pending processes identifies, captures, certifies, and converts goal-scored balls into NFTs, and deliver their physical and digital representations. The GOLball process serves as a starting point for a comprehensive monetization strategy, creating engaging moments and additional monetization opportunities from the Phygital goal ball.

GOLball's ecosystem provides a competitive advantage, monetizing where others struggle and creating long-term value for stakeholders. Low-income and low-engaged participants can receive benefits well above the average commercial value and priceless experiences that may exponentially gain value over time.

GOLball launched LaLiga's Gol-Ball Membership, a fan community with voting rights over an asset pool, including physical GOLballs, VIP experiences, and exclusive memorabilia. Membership was granted through the sale of select NFTs on OpenSea. With over 300 members in just a few days, the community will decide the fate of invaluable football memorabilia and experiences in one of the world's most-watched sports competitions.

"Piercing the Armor"

The global market potential of football and related products is well-known, with valuable assets like image and broadcasting rights held by legacy media institutions through multimillion-dollar contracts. GOLball's patent-pending processes create a new product-oriented market around game-scored balls, memorabilia, and unique match day experiences.

To strengthen the decentralized ecosystem's hold on this market, comprehensive capitalization on fan engagement and additional monetization opportunities must be pursued. This requires an integrated approach, including a unique football product (goal-scoring ball), exclusive rights, proprietary methodology, a Phygital Network, and a Phygital monetization strategy. These components operate on a technical layer of data analytics, smart contracts, digital collectibles, machine learning automation, and decentralized governance memberships.

GOLball's key elements include:

• Goal-scoring Ball: The physical ball scored during an official football game, decommissioned by an authorized GOLball representative.

• Contracts: Long-term agreements granting GOLball exclusive ownership of balls used during official games, including goal-scoring balls.

• Patents:US and European patent pending applications protecting GOLball's unique vision and processes.

• Trademarks: 22 trademark applications filed in 10 different countries.

• Phygital Network: Infrastructure to track, capture, certify, and deliver goal balls and create digital representations on the blockchain for unique ownership.

• Monetization: Using goal-scoring and game balls to create derivative products and experiences for various target users and markets based on memorabilia, merchandising, venues, and priceless experiences.

Decentralization Roadmap

GOLball's scalability corresponds to its ability to introduce products in the most-watched football leagues and tournaments. With decentralized ecosystem support, GOLball can reach competitions that collectively represent a 90% market share in football revenue, driving profitability, influence, and asset availability for decentralized communities.

Following the "LaLiga's Gol-Ball Membership '' model, the vision is to implement fan-governed asset pools backed by GOLballs, memorabilia, experiences, and tickets in all football competitions offering these products.

The goal is to build a network of independent fan communities that can individually increase in value by reinvesting funds from membership token trading into new assets, continuously enriching the asset pool's underlying value through membership voting procedures.

Funding Schedule

Gol-Ball Inc will purchase $BIT equivalent to 1% of its gross annual revenue for burning in accordance with the following schedule for the two funding installments of 12.5 Million USDC each, totaling 25 Million USDC in funding:

Installment #1 (Fixed non-contingent amount)

• 12.5 million USDC allocated to GOLball.

• $BIT equivalent to 1% of GOLball's gross monthly revenue purchased for burning monthly.

Installment #2 (Contingent on Registering 100,000 users)

• 12.5 million USDC allocated to GOLball by BitDAO within 45 days from milestone achievement. .

• An additional 1% of GOLball's gross monthly revenue allocated for purchasing and burning $BIT.

Total amount

• 25 million USDC in installment payments to GOLball.

• $BIT equivalent to 2% of GOLball's gross monthly revenue purchased for burning monthly.

• 10% of all GOLball's fan membership tokens for every decentralized community.

Other Deliverables to BitDAO

• DAO Memberships: As part of the fan engagement roadmap, GOLball aims to establish decentralized fan communities, with over 300 members in the first community, "LaLiga's Gol-Ball Membership." BitDAO will receive tokens equivalent to 10% of membership tokens in each decentralized community established through GOLball's NFT sales.

• Co-Branding Agreement: After receiving the first allocation, GOLball will grant co-branding rights to BitDAO, using "Gol-Ball Powered by BitDAO '' in branding, marketing, advertising, commercial, and merchandising activities. The BitDAO community will decide on the logo to be displayed alongside GOLball.

Terms of the Funding Schedule

If GOLball achieves the milestone set in the proposal (registering 100,000 total users to our platform) but does not receive the respective allocation within 45 days, BitDAO will be in breach of the Co-Branding agreement. GOLball will then have the right to exclude BitDAO from branding, marketing, advertising, commercial, and merchandising activities involving GOLball.

Monetization Strategy

GOLball's innovative monetization strategy aims to create revenue streams by focusing on Phygital fan engagement, digital asset pooling, and collaboration with third-party brands. By bridging physical and digital activities, GOLball works to generate multiple buying profiles with diverse price structures, ensuring products have target fits at all times. Recurrent transactions around games and tournaments are expected through Web2 platforms, which are more intuitive than Web3 applications.

The digital asset pool creates initial offerings of NFTs, providing direct selling income and valuing related assets. Furthermore, trading NFTs on secondary markets with royalty payments (5% per transaction) guarantees a permanent income source. Assets in the pool can generate income through trading or intrinsic valuation, increasing the price of NFTs.

GOLball's engagement and innovation within the football ecosystem provide a solid base for third-party brands to offer diversified products and services, resulting in additional payments, fees, and revenue-sharing income models.

Additional Value Creation

GOLball aims to create social value through integrating green initiatives, contributing to global Net-Zero balance objectives. By supporting initiatives that mitigate fans' carbon footprints, GOLball promotes environmental responsibility and fan engagement.

GOLball's positioning enables the implementation of a cross-service platform serving different brands and institutions, allowing investors to access the football industry and content platforms to have abundant, relevant content daily.

The Future Ahead

GOLball's future lies in expansion strategies, additional innovation, and alternative business models. Expansion includes acquiring rights and alliances in different sports, increasing the engagement platform for additional monetization. The digital asset pool diversifies by accumulating sports-related assets, increasing pool value and attracting members, resulting in market appreciation and long-term valuation.

A consolidated transactional platform and valuable digital asset pool provide GOLball with significant power to develop additional business models, from virtual reality spaces to co-branding and own-branding events and products. GOLball's future depends on constant innovation, integrating more fans and users, and incorporating non-traditional revenue streams, supported by committed stakeholders and evolving technology facilitating adoption and transactions over extended business cycles.