Independent film producers are showing interest in cryptocurrency ICOs, which might change traditional ways of money attraction and replace crowdfunding platforms.
Usually crowdfunding participants receive bonuses in return for their donations, such as dinners with actors and film crew, film copies or merchandise. With blockchain-based ICOs appearance, here comes a new model of crowdfunding campaigns, when donating people get their share in future film earnings. This model allows small investors and ordinary non-professionals to enter the filmmaking industry. The first independent film to use ICO for fund raising is Braid, a psychological thriller and horror story, “a female version of A Clockwork Orange, Mulholland Drive meets Heavenly Creatures meets Funny Games, with The Others twist at the end,” as it is described by its creators. The crowdfunding campaign will be conducted on the Ethereum-based portal WeiFund. Filmmakers hope to attract about $1.4 million during the ICO that is scheduled for 7 June. 62.7% of proceeds from the crowd sale campaign will be allocated for production costs, 17% will be given to pay for writer/director/producer/talent fees, 10.6% will be addressed to post production. Unlike a traditional crowdfunding campaign, the ICO participants will receive 100% of adjusted gross proceeds until they recover their initial investment, plus 15% interest. After that, token holders will receive 30% of profits. “Meanwhile, independent filmmakers are struggling to get funds because all they can really use is Indiegogo and Kickstarter but they’re a donation site, it’s like charity. I wouldn’t invest into one of those movies because it could go on to make millions [of dollars] and I wouldn’t see a return,” Mitzi Peirone, the writer and director of Braid, said to The Huffington Post. “It’s definitely been interesting going this road of essentially breaking ground, and breaking the studio system by putting more power into the audience themselves. Giving them a choice to be able to participate and be involved in the process as a whole. It’s like uncharted territory,” Logan Steinhardt and Arielle Elwes, film’s producers, added. The Shooting process is scheduled for June and July of 2017, and in 2018 Braid is expected to take part in the Sundance Film Festival.