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Executive Summary Incent is an engagement platform that employs its own cryptocurrency token, Incent (INCNT), to reward any digitally-trackable action. 

Since its ICO in 2016, Incent has spent 3 years and more than US$4M building, testing and refining digital marketing technologies which allow both publishers and advertisers to more effectively attract, engage and retain audiences: particularly Millenials and Gen Z: by rewarding every stakeholder in this value chain for their engagement. Moreover, since 01 Dec 2019, Incent has gained viral traction with its Ingage product, which is targeted at streamers and video content creators. Ingage uses ‘drop codes’ – short strings of characters – displayed at intervals within the video stream. Audiences redeem these for INCNT, which is instantly credited to their account on the Incent platform. They can hold these on the platform, transfer them to another user, withdraw them to an external blockchain wallet, or trade them on supporting exchanges. 

Incent is committed to the principle of Open Value, and does not control the reward token or restrict what users can do with it. Because blockchain is global and borderless, no banking infrastructure is required to distribute rewards. The token has programmatically finite supply, and is purchased off the market at the point of issuance.

Ingage has demonstrated a significant impact on increasing engagement, representing an attractive tool for advertisers, publishers and audiences alike. With this platform, digital advertisers can access the burgeoning influencer market, and increasingly saturated attention economy; content creators can monetise their work, increase engagement and reward their viewers; and audiences can generate income and give back to their favourite content creators.

This synergy enables Incent to fuel rewards that align interests between all stakeholders of the platform whilst channelling advertising revenues into the INCNT currency.

Incent is now targeting an equity and token raise to scale globally, enhancing its platform and establishing partnerships with advertisers and streamers while maintaining compliance in key jurisdictions.

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Contents

Executive Summary 2 Contents 3

Background 5 Traditional Marketing and the Attention Economy 5 Mission / Vision 5 Global Context 6 The aftermath of the global financial crisis 6 The erosion of trust 6 Digital advertising in the Attention Economy 7 Influencer marketing 8 Larger influencers: 9 Smaller influencers: 10 Incent technology 10 Company background 11 Blockchain 11 Incent token 12 The Incent platform 12 Ingage 13 Insync 14 API 16 Security and compliance 16 Ingage: pilot results 16 Content creator growth 17 User Growth 17 Page hits on get.incent.com 17 Addressing real pain points 18 Influencers 18 Audiences 18 Advertisers 18 The opportunity for Ingage 18 Ambassador streamers 19 Donations 20

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Growth model and insights 21 Monetisation and growth strategy 22 Financial assumptions 22 Drivers for growth 22 Market size and KPIs 23 Incent’s roadmap, 2017-2022 23 The story so far: 24 2017-2018: foundations and the Incent cryptocurrency 24 2019-2020: platforms and partnerships 24 2020: Scaling 24 2021-2022: Growth focus 24 Investment pitch 25 Team 25 Core team 25 Advisory Team 26 Brand Ambassadors 26 Discord Community Manager 26 Conclusion 26 Disclaimer 26 Links and further resources 27

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Background ‘Nothing is more powerful than an idea whose time has come.’ 

– Victor Hugo

Incent is very much a product of its time. It is a result of, and response to, the technological, economic and cultural developments of its circumstances and the immediate needs that arise from these.

Several realities and trends come together to create the context for Incent: a mosaic of factors that make a on-demand digital rewards currency such a powerful proposition right now. These factors include the failure of conventional loyalty programmes either to reward consumers or drive repeat commerce for businesses; the direction of travel for the global economy; growing skepticism of brands, organisations and institutions of all kinds; the fast-evolving landscape of internet use and online activity; and the implications of these changes for digital marketing.

Traditional Marketing and the Attention Economy

Traditional marketing is becoming less and less effective at attracting, engaging and retaining audiences. The “attention economy” is saturated with few solutions able to cut through the noise. Moreover, with Gen Z emerging as a substantial digital market, there are few solutions that target them effectively. Furthermore, while influencer marketing has proven effective and is growing rapidly, the market is largely restricted to mega influencers. This leaves 96%* of the influencer market under-penetrated, even though marketeers globally agree that mid, micro and nano tier influencers drive greater ROI, because they are more creative, more accessible, and have more loyal and focused audiences (*Hootsuite Digital 2019 Report).

Incent’s aim is to build solutions that more effectively penetrate the mid, micro and nano influencer segments, as this will provide access to a vast collective audience, and demographic that is coveted by music, fashion, sports, entertainment, finance and lifestyle industries. All whilst simultaneously delivering brand endorsements to a network of micro influencer.

Mission / Vision

Incent’s motto is ‘Stay True’. Our mission is to re-capitalise the masses by re-energising the relationship between advertisers, publishers and their audiences. Our vision is to make it possible for anyone, anywhere, anytime to reward anyone for behaviour they want to drive instantly, with real value. Essentially, we aspire to be the “Stripe” of reward marketing.

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Global Context

The aftermath of the global financial crisis 

The financial crisis that began in 2007 has had long-lasting impacts on the global economy. Some of the immediate and ongoing results of the crisis include:

• Taxpayer-funded bank bailouts and huge resulting public debt • Austerity and deep cuts to public services • Historically low (zero or even sub-zero) interest rates  • Quantitative Easing and soaring prices across all asset classes • Economic stagnation across major economies • Significantly worse employment prospects

These outcomes disproportionately impacted Millennials (roughly those born in the 1980s and 1990s), despite the fact that this generation played no part in causing the financial crisis. Millennials have been priced out of the housing markets, are less likely to hold secure jobs or establish stable careers, are often burdened with tens of thousands of dollars of debt before they even start employment, and lack the opportunities for saving and return-on-investment enjoyed by their parents’ generations. 

Incent is a form of digital wealth that should revalue with growing adoption and that offers the tech-savvy Millennial generation near-frictionless entry into an attractive new asset class.

The erosion of trust

The failure of central and commercial banks to either anticipate the crisis or address it effectively has prompted widespread dismay and loss of confidence in the financial sector. The combination of inadequate political response; regulators reluctance to fix the underlying causes; years of austerity; and, the failure to convict wrongdoers or hold irresponsible bankers to account, have all led to anger at the political classes and ‘the establishment’, which has in turn opened the door to extremist politics.

Furthermore, over the past few years a series of scandals has undermined trust in almost every area of public life: drug scandals in sport; the emissions scandals in the automotive industry; manipulation and corruption in the financial sector; the #MeToo movement in the entertainment industry and beyond; wide scale data harvesting by the tech industry, facilitating suspected vote rigging; and the reluctance of major economies to engage with climate change – to name just a few examples.

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There is a widespread cynicism towards institutions and corporations, and ‘values’ are now viewed as either out of touch or opposed to the interests of ordinary people. Big Tech is one of the targets of public concern.

This is further compounded with the advent of COVID 19 and major governments' inadequate response. With uncertainly of what the future holds when ‘in is the new out’; working from home is now normalised through on-demand employment, and more and more time is spent online.

As a cryptocurrency, Incent offers a transparent, verifiable and trustworthy source of digital value that lies outside of existing institutional structures and is not owned or controlled by a single entity – including Incent Holdings Pty Ltd.

Digital advertising in the Attention Economy

With the combined rise of the internet, and the ubiquity of smartphones and portable devices for consuming web content, the world is spending an increasing proportion of its time online. Indeed, in 2019, the average global user spent 6 hours and 42 minutes online each day.

This figure is higher among ‘digital natives’ (those who have grown up with the internet and mobile connectivity). We are living an increasingly larger proportion of our lives online, often within diverse virtual communities, whilst consuming myriad forms of media. Indeed GlobalWebIndex’s latest data show that nearly 3 in every 10 internet users now watch live streams of other people playing video games, equating to a global audience of close to 1.25 billion people.

This has engendered a substantial shift for commerce and the advertising industry – both of which have similarly moved an increasing proportion of their efforts and investment to the online sphere. 

Digital advertising is a $385 billion, high-growth industry. Google’s digital ad revenue for 2019 was $130 billion. Global digital ad spending rose 30% in 2019, and mobile accounts for more than half the total. Of particular relevance for Incent is the fast-growing gaming sector, which saw $152 billion in revenues for 2019.

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However, the existing models of advertising did not translate well to the web. Today’s web users are less likely to tolerate features they consider annoying or intrusive, knowing they can often simply go elsewhere if a company or product does not deliver the experience they want. For example, users quickly became tired of the banner ads that were such a common feature of the early web, and are increasingly skeptical about the collection of personal information that has become so widespread in monetising web services. They have become adept at avoiding adverts, either by habitually ignoring them (‘Ad blindness’) or by deliberately preventing them from being downloaded at all (30% of internet users now use ad blockers).

User attention is become ing a scarce resource with increasing value to commerce. Businesses compete for this attention, using a range of strategies. The smartest of these flip older models of advertising on their head. Originally, users were treated as passive consumers of content who could be expected to click on adverts placed in front of them, due to the attractiveness of the brands represented. But today’s consumers are far more active and discerning than this. In the face of mistrust around corporations’ motives and intense competition from other businesses, they are less likely to bother. Thus the ‘What you can do for us’ model of advertising is slowly giving way to a ‘What we can do for you’ model. After all, attention is valuable, and the more quickly, easily and enjoyably a business can deliver a required service, the more attention they will receive. Among other trends, this has led to the ‘gamification’ of different services: the principles of video-gaming have been incorporated in products to make them more compelling for the user to engage with.

Incent enables businesses to capture audience attention across a wide range of online channels by incentivising any digitally trackable activity.

Influencer marketing

While the increasing digital advertising spend reflects the growing proportion of commerce – and life – that take place online, advertisers face difficulties in reaching their target demographics. This is especially true of younger generations. This is largely down to the erosion of trust in big businesses.

• 65% of people do not trust adverts – and 71% do not trust sponsored social media ads.

• 65% of people do not trust company press releases • Overall, 55% do not trust the companies they buy from as much as they used to

However, 81% of people trust the advice of friends and family over advice from businesses.

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This loss of trust in business in favour of word-of-mouth recommendations from those with real experience has driven a seismic shift in digital advertising, away from conventional strategies to a grass-roots approach of Influencer marketing.  Influencers are (mostly) individuals who have built a social media community around specific themes or interests, comprised of people who have chosen to follow them. Influencers claim particular expertise in their subject matter, and have therefore established credibility among their followers. They may attract communities of anything from a few hundred or a few thousand followers, up to many millions for the largest celebrity influencers.

Many consumers trust the personal and independent opinions of influencers far more than the self-interested advice of brands themselves. Therefore, endorsement by a large influencer is extremely valuable to commerce. So long as it is genuine, audiences will trust such an endorsement as much as they trust a recommendation by friends or family (influencers who ‘sell out’ can quickly lose credibility and followings). As a result, almost half of digital marketers believe that influencer marketing is either better (34%) or much better (14%) than other digital channels.

Of course, there are challenges involved in influencer marketing. Partnerships with the largest influencers are extremely valuable, but competition is fierce and they are hard to establish; the most lucrative names are managed by agencies and there is little to no prospect of ordinary businesses contacting them at all. While smaller influencers are more accessible, more effort is required to organise partnerships with enough names. 96% of all influencers have fewer than 500,000 followers.

While there are a handful of very large influencers, the vast majority fall into the mid-to-micro categories, with between 1,000-5,000 followers (nano) up to 100,000 followers (micro) or up to 100,000-500,000 followers (mid). Smaller micro and nano influencers are considered almost a friend by their following - this gives a huge advantage — your product will get an endorsement from an audience because of an established trust towards the influencer

There are tradeoffs in dealing with any specific segment of the influencer market.

Larger influencers:

• Huge audiences (millions) • Generally more professional • Lower engagement rates • Harder to secure partnerships • Potentially seen as more ‘corporate’ • Less targeted

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Smaller influencers:

• Easy to access through Ingage • Greater authenticity • Higher specificity (more narrowly focused) • Higher engagement rates • More genuine but typically less professional • Smaller audiences

Research demonstrates that live streaming and video content are the most engaging and credible medium for influencer marketing: particularly for the tech savvy millennial and gen Z demographic.

This is the segment that Incent has targeted – with very encouraging results. In fact, the success of the early trials is due to the way Incent has leveraged influencer marketing to spread awareness of its own product.

Incent enables businesses to partner with smaller influencers effectively, accessing highly granular audiences for lower cost and with greater engagement than any other method. The beauty of integrating with Incent’s network of micro and nano influencers is that it allows brands to ultilise multiple influencers and their audiences simultaneously.

Incent technology Incent allows any organisation to incentivise any digitally trackable action on any online platform, seamlessly, cost-effectively and scalably.

The Incent platform is built on several key pieces of technology. These include both open source software and patent-pending technology developed in-house.

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Company background

Incent grew out of an earlier project, BitScan, an initiative launched to enable retailers to access the benefits of bitcoin and cryptocurrency payments. BitScan was founded in 2013 and grew to become the largest directory of crypto-accepting businesses in the world, offering tools that merchants could plug into their websites to process crypto payments.

By 2016, the landscape for cryptocurrency use and adoption had become clearer. Retailers were reluctant to take a chance on a new technology en masse; while merchants in certain sectors benefited disproportionately, the payments system worked well enough in most cases that inertia and the perceived risks of moving to crypto outweighed the advantages. 

However, it became clear that small retailers were struggling to compete against large stores, and that conventional loyalty programmes were costly and offered poor value for money. There was room for a cryptocurrency-powered reward solution that would address the major shortcomings of existing loyalty.

Towards the end of 2016, BitScan crowdfunded Incent, raising $1.1 million in cryptocurrency. Incent was incorporated early in 2017 and the company secured office space in Sydney and began hiring developers.

Incent’s first proof-of-concept product was the Incent Toolbar, a browser plug-in that rewarded users for surfing the web. This was ultimately developed into Ingage, the company’s on-demand rewards system (see further below). Alongside this, Insync, a patent-pending solution for delivering rewards frictionlessly against card or bank account spends, was developed.

Incent has always placed a high priority on compliance, working closely with regulators as the legislation for crypto and blockchain companies evolved. Its team includes talented frontend and backend developers with in-depth knowledge of blockchain, marketing professional and compliance experts.

Blockchain

Incent’s internal economy is underpinned by an open, transparent blockchain network. This both forms a critical element of the platform’s infrastructure and guarantees confidence in the Incent reward currency. 

Blockchain technology has only existed since 2009, when Satoshi Nakamoto launched the Bitcoin protocol. Bitcoin was the first true example of a trustless online currency. Nakamoto’s genius lay in designing a system that enabled users to transact peer-to-peer, without the need for a trusted intermediary to keep accounts.

All transactions on the blockchain are immutable (i.e. permanent), and cannot be reversed by a third party. The validity of any transaction can be checked by anyone, and the ledger of balances is maintained by a large network of computers that does not have a single point of failure.

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For Incent, this functionality is vital, since it proves that Incent is not controlled by a single entity – including Incent Holdings Pty Ltd. Unlike conventional, centralised reward programmes, the Incent currency exists and has value outside of the company and any partnerships it builds. Incent can be sent to anyone, used by anyone, and integrated by any developer into their own products. Incent Holdings cannot – and does not want to – limit or prevent this.

We call this ‘Open Value’. Once users withdraw their Incent, it is theirs to use however they wish, without restriction. Tokens have real financial value and can be freely held, transferred, spent and traded outside of the Incent platform.

Incent token

As a blockchain token, Incent’s supply and specifications can be verified by anyone, using only an internet browser.

• Token supply: 46,016,531.00000000  • Non-reissuable • Divisible to eight decimal places • Token symbol: INCNT

Incent tokens are distributed to users in reponse to any online activity defined by the advertiser. (For example, with Ingage allows streamers, to display ‘drop codes’ in the live streams, which viewers can use to claim INCNT tokens on the Incent platform.)

The economics of the Incent ecosystem are driven by the effect of constant demand by advertisers on the open market for a digital token with in-built scarcity, purchased to fuel audience attention. 

The Incent platform

The core functionality for the Incent ecosystem is accessed through a web-based interface, similar to other online services such as exchanges and social media platforms. This is designed to be as user-friendly as possible, with a familiar UX and username/password login. No blockchain download or knowledge of cryptocurrency is necessary.

Incent has spent considerable time building a secure vault for storage and transfer of Incent tokens. Users’ holdings are dealt with in a similar way to crypto exchanges and brokerages such as Coinbase, with a hot wallet for day-to-day withdrawals and a cold wallet for the bulk of the reserves (around 98%), in line with best practice in the industry.

Users who earn Incent in the course of different online activities have their accounts credited on the Incent platform. Because this is a centralised platform, they can transfer Incent to other users instantly at with zero cost (in the same way that services such as Uphold offer similar functionality), since this is an operation on the internal ledger of balances and does not require interaction with the blockchain and the associated transaction fees.

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Users can view their balances, in Incent and fiat equivalent, and track the value of their holdings over time. They can transfer Incent to other users, or withdraw it to an exchange or third-party wallet. (A small charge is levied for this activity.)

Ingage

Incent’s core technology at this point is Ingage: an on-demand rewards system that can be used to incentivise any digitally trackable activity for anyone, anywhere in the world. With this problem in mind, Incent entered the live-streaming market with our groundbreaking Ingage app in December 2019. With Ingage, live-streamers earn instantly for rewarding their viewers with micro-payments of crypto-currency. This process is simple, free, and agnostic of their chosen streaming platform(s). Streamers love Ingage as a frictionless and unrestricted means of generating additional revenue while building audience engagement and loyalty. Their collective audiences love Ingage because they get to earn for doing what they enjoy. 

In this sense Ingage represents a shift from the outdated pay per view model to ‘Paid to view and Do’ (PVD). Indeed, without a competing solution in the market, growth has been viral. At our current trajectory our community of streamers is projected to grow to over 20,000 with more than 800,000 viewers by the end of 2020.

Ingage enables businesses to integrate their advertising with content creators, accessing the powerful influencer market. Moreover, it does so in a fun and gamified way that operates seamlessly for the user and across any platform. It is designed to be deployed across any marketing channel, making it a versatile and cost-effective solution.

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Ingage operates as a layer over a stream (live or otherwise), integrated with any major platform (YouTube, Twitch, DLive, etc). At intervals throughout the stream, time-sensitive ‘drop codes’ are displayed. These are simply short strings of characters that act as vouchers for a certain amount of Incent. The number and value of each reward can be configured for each campaign. To ensure increased engagement, codes have a time limit so they must be claimed quickly after display.

Users claim drop codes, and are immediately credited with the INCNT tokens. At the time of redemption, they are presented with an offer that exposes them to partnering brands’ adverts. Incent is currently in dialogue with multiple Brands to Pilot the system to achieve commercial validation.

100% of funds earned by Incent through users’ engagement with the combination of brand exposure and offers are deployed to purchase Incent off the open market, facilitated by the trading team. The Incent tokens acquired in this way are distributed between the user, the streamer and Incent itself. Thus Ingage is able to align interests between all stakeholders in the ecosystem, rewarding the streamer for facilitating user interaction with the brand, and building Incent’s strategic reserve to enable further expansion and ongoing operation. 

Real-time statistics for campaigns and engagement are available, enabling valuable analytics and the opportunity for businesses to fine-tune their strategy for maximum engagement. For purposes of transparency, global statistics are aggregated and can be viewed by anyone at https://incnt.me/transparency.   Insync

Incent was born out of the recognition that traditional loyalty is a poor proposition for retailers and customers alike. The costs of running a programme are high, and the impact in terms of repeat custom is generally low. Meanwhile the points themselves are worthless outside of the

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immediate business or network, cannot be transferred and may expire or have other conditions around their redemption.

Insync is a patent-pending technology designed to reward consumers frictionlessly, in real-time, with a token of actual digital value, for any commercial activity a business or organisation may want to incentivise. 

Insync is designed to address two major problems in the loyalty industry. Its key features are:

Open Value. The nature of IOU-style reward points and restrictions around their redemption, which make them poor value for consumers and retailers alike. Incent addresses this with points that take the form of a digital token of programmatic scarcity, purchased off the open market at the point of issuance. In the spirit of Open Value, these can be freely transferred and traded within and outside of the Incent ecosystem.

Seamless delivery mechanism. Conventional loyalty schemes typically run on 20th century technology, or even 19th century technology – plastic cards or stamped paper tickets (The typical US household is enrolled in between 19 and 29 loyalty programmes, but is active in only five to 12 of these). Insync enables retailers to distribute points to customers with no cards, and with no additional training or friction at the checkout.

Insync uses open banking APIs to link a user’s bank account to the Incent platform. This operates in a similar way, and using similar security, to mobile banking apps and popular accounting software. Once the consumer’s account is linked, the platform can read (read access only) every transaction on the synced account. Incent points can then be distributed automatically against qualifying spends from partnering retailers. 

For example, a supermarket might agree to credit customers with $1 of Incent for every $500 spent in-store. Once they have signed up and synced their bank account, the customer does not need to do anything else. (They may not even realise that a given store is issuing them with rewards when they shop there.)

Aside from the repeat custom generated by consumers seeking rewards that are designed to increase in value over time, retailers also gain insights from highly granular data (aggregated and anonymised to protect users’ privacy). This approach may be used in conjunction with a subscription model, in which a user pays a monthly fee to access higher reward levels. As with Ingage, all funds are channeled into the Incent market.

While Insync has been trialled, it requires a higher profile and user numbers to be viable. The priority at this stage is to build Incent’s user base with Ingage, which has been virally successful within the streaming community. Once this strand of the business has been adequately monetised and matured, it will be possible to introduce Insync to an order-of-magnitude larger user base and attract retail partnerships. The rest of this white paper will therefore focus on the opportunity for Ingage.

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API Incent is developing open APIs to enable anyone to access the ecosystem. This is part of the company’s vision of Open Value: developers and businesses can use Incent for their own applications, without permission from Incent itself (or even, necessarily, their knowledge). 

Any organisation that integrates Incent within their own business model will drive demand into the market, benefiting anyone who holds Incent and further raising awareness of the project. This is reason enough to open our APIs to anyone. As a blockchain token, Incent does not ‘belong’ to the company. Neither can Incent control its use, and trying to do so would in any case be counterproductive. It is, in any case, possible to build applications that use Incent with or without Incent’s consent or APIs. 

Security and compliance

Incent employs multiple strategies to protect users’ digital funds and personal information. These include military grade AES-256 bit data encryption, transport layer security (TLS), regular security audits and best practice organisational security – placing the company on a level with the requirements for Australia’s banking sector.

Incent is registered with AUSTRAC, Australia’s financial intelligence agency, and complies with Australian Government AML/CTF obligations. The company is PCI, GDPR & CCPA compliant. 

To avoid the distribution of Incent tokens being ‘gamed’ by streamers/audiences and prevent financial fraud, Incent employs advanced machine learning techniques to recognise unusual activity, suspicious logins and account takeovers. It is against the company’s terms and conditions for streamers to claim their own drop codes.

Additionally, there are intrinsic benefits of Incent’s architecture and business model in terms of user privacy. Personal information need only be given to one company, Incent, for users to receive rewards from any participating businesses. It is not necessary to sign up with each business separately, and retailers do not need to know customers’ details. Incent does not share this information with its partners without permission, so users retain control of their private data. It is impossible for Incent’s merchant partners to resell customers’ data to third parties, because they do not have it.

Incent’s Privacy Policy is written in clear, accessible language.

Ingage: pilot results

Incent’s trials of Ingage with the streaming and video gaming community have clearly proven the use case for an on-demand digital rewards currency. Indeed, the headline results of Ingage’s ongoing operations are compelling:

• 27% increase in average audience view time during broadcasts • 80% secondary action engagements • 56% average returning viewers, week-on-week

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Content creator growth

User Growth

Page hits on get.incent.com

Full aggregated statistics for Ingage can be found at https://incnt.me/transparency.

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Addressing real pain points

Ingage works due to a combination of pain points for different stakeholders and the Incent-specific features designed expressly to address these. 

Influencers

Streamers and video content creators are keen to grow their audiences and enhance the duration and quality of engagement with existing followers. Streamers may also struggle to monetise their content and audiences.

Audiences

In the Attention Economy, there is a high degree of competition for viewers – and viewers recognise this. If they do not feel they are getting value from content, they will leave. This applies to both their long-term interest in a given streamer, and their attention in a specific stream. They lack tangible rewards for their engagement with a streamer and the time they commit to viewing someone they follow.

Meanwhile, audiences are constantly bombarded with adverts and offers in an attempt to monetise their attention. They are also aware of this, and suffer from ‘offer fatigue’ – meaning they are less likely to engage with ads, and more likely to become bored or resent the effort. In this respect, their interests are not aligned with those of the influencer.

Advertisers

Lastly, advertisers are struggling to adapt to the rise of the Attention Economy and increasingly tech-savvy audiences who will block or ignore conventional adverts. These factors mean ROI for advertisers can be low or unpredictable. They lack easy access to data and insights that could power their campaigns and enable them to engage successfully with their target demographics. While influencer marketing is gaining traction, connecting with the right influencers can be difficult or time-consuming.

The opportunity for Ingage

Incent’s Ingage technology offers solutions to the pain points experienced by Influencers, Audiences and Advertisers alike, aligning interests and moving from an outdated and unsuccessful ‘pay-to-view’ model to a ‘paid-to-view-and-do’ (PVD) approach. In this model, audience attention is treated as the scarce and valuable resource it is, and rewarded appropriately with a token of real digital value; at the same time, this is deployed to reward streamers with increased engagement. For advertisers, the benefits are considerable:

• High ROI with improved attribution. In a climate of cynicism towards advertising, marketing campaigns struggle to attract, engage and retain audiences. Ingage drives a higher return on marketing spend and, critically, provides a detailed picture of the consumer’s journey and activity to the point of conversion.

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• Cut through the noise. In an environment saturated with marketing products, all competing for attention, brands can deploy a solution that rewards everyone in the value chain and delivers a high-impact, differentiated value proposition.

• Access the fastest-growing influencer segment. Marketing is concentrated around celebrities and mega influencers (1 million followers upwards). Yet micro- and mid-influencers (fewer than 500,000 followers) have greater proportional impact, and there is less competition to secure partnerships with them.

• Millennial and Gen Z-friendly. Few solutions are specifically targeted to digital natives, yet this demographic is a huge market. Tech-savvy younger web users who have also missed out on the historic appreciation of other asset classes (stocks, property, etc) are particularly attracted to cryptocurrency ownership.

• Highly granular, segmented market. While larger influencers are typically inaccessible and are managed by agencies, micro and mid-level influencers are not only easier to contact but are more creative, authentic and focused around more targeted and niche audiences – who will be more motivated to engage with relevant brands on an influencer’s tacit or overt recommendation.

• Access the long tail. A high proportion of digital marketing is concentrated around large corporations/brands. Incent offers an opportunity for small- to mid-size local/regional brands to participate more efficiently and effectively via programmatic and native advertising, leveraging smaller influencer channels.

Several factors make Incent unique in the current digital advertising space:

• Incent is platform and environment agnostic, making it seamless and highly accessible to anyone.

• It is universally available and applicable, regardless of audience size or infrastructure – meaning it is extremely scalable.

• It is fuelled by a scarce digital asset, the Incent token, which revalues as a result of platform adoption – implicitly incentivising recommendations and the viral growth of the community.

Ambassador streamers

Incent has used its own product to bootstrap the community and gain its first users. ‘Dogfooding’ the product in this way not only builds the user base, but constitutes a useful case study in its own right.

Incent’s first major streamer partner was Luke Taylor, known online as @LTZonda, one of the UK’s biggest gaming names with almost 80,000 YouTube subscribers nearly 400,000 Twitch followers.

Like many other streamers, Luke was excited at the idea of being able to thank his audience for their commitment and participation. He had also experimented with reward systems on

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streaming platforms in the past, and been dissatisfied with the results, especially when the terms were changed:

“I used to use the original DLive treasure chest mechanic. It used to give viewers 1-5 cents every 10-20 minutes based on engagement. Unfortunately no algorithm they could come up with would stop farming, so it wasn't sustainable. They changed it to a giveaway mechanic in the end where streamers fund the majority of its value themselves.”

Moreover, Luke was concerned that there was nothing backing the value of the tokens.:

“This was all funded by a 5% allocation to viewers on the blockchain via the inflation pool. So had no real value backing it except the hope the link system would work.”

This is one of the features of Incent that attracted him, with actual value coming into the currency from advertising, surveys and other sources of revenue.

Luke raised awareness online, within his streams and in frequent tweets about using Incent to his 150,000 followers:

“My first stream today rewarding my viewers with crypto currency via @IncentLoyalty was awesome!”

“With some viewers earning $4+ in INCNT today, simply keep an eye out for a banner at the top of my stream with different codes throughout the day!”

By onboarding Luke as an Incent Ambassador, the company was able to do two things:

1. Refine the product, consulting with a successful streamer to find out what both streamers and audiences wanted – thereby enabling rapid improvement to the platform and the rollout and scheduling of new features that would increase market fit.

2. Engaging with the wider streaming community as an Influencer, using Incent to market the product itself and encourage more streamers on board.

This process is being repeated with partner streamers in key locations, with the aim of building a global presence. Since Ingage requires no interaction with the banking system for users, it can be used anywhere in the world and there are no geographical or regulatory restrictions. As of mid-August 2020, Ingage has 10,000+ Streamers, and 72,000 users.

Donations

One of the new features implemented in response to feedback from Luke is Donations. This is a natural and logical extension of distributing rewards to audiences. Many streamers struggle to find ways to monetise their viewers’ engagement respectfully and effectively, since adverts or recommendations that are seen as intrusive or mercenary detract from the authentic nature of the influencer.

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Streamers are not allowed to claim their own codes, due to the scope for abuse (Incent has measures in place to prevent this occurring). The Donations function enables audiences who have received Incent to give back to streamers, providing tangible compensation for their efforts as well as better engagement. 

Trials have shown that periodic rewards of a few cents are effective in raising audience engagement. With tens or even hundreds of thousands of followers per stream, even a small proportion of the total value distributed to audiences, donated back to the streamer, can constitute significant additional income and engender goodwill within the community.

Growth model and insights

While there is tremendous variation in streamers’ audiences, for the purposes of this paper we can see content creators as mini-communities that bring an average of 20 new users to Incent. Since Incent is a highly scalable solution that can be used by micro to mega-influencers and celebrities, we do not need to focus on the larger segment in terms of building overall users.

Incent has devised a strategy to grow its userbase virally, aligning incentives between the company, streamers and audiences. Importantly, there is no cost to streamers. Research showed that subscriptions were not a viable way to scale. Instead, we split income from advertising revenues between the different stakeholders in the system, rewarding everybody. 

• Incent funds influencers to reward their audiences • Audience redemption of tokens leads to secondary engagements, earning

advertising revenues • All revenues are deployed to purchase INCNT from the open market, which are

distributed to different stakeholders in the value chain.

This provides a self-funding model for growing Ingage’s streamer and audience user base.

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Monetisation and growth strategy

Incent has proven market fit. It has created a technically strong product that appeals to streamers, audiences and advertisers, and that can scale quickly and without limit. The financial viability of the business has been proven via the use of offer walls with initial advertising partners. Income from these adverts is supplemented by secondary actions by the end user, such as filling out paid surveys. In every case, all revenues are channeled into the market for INCNT, with tokens being distributed to audiences and streamers, as well as funding further user acquisition and expansion by Incent.

Financial assumptions

By gauging market size for different platforms and estimating average Ingage redemptions per month, we can create a straightforward model that values the Gross and Net revenue potential of influencers as follows:

INCNT asset value growth. Incent’s business model requires that INCNT distributed as rewards is repurchased from the open market from Gross Revenue, in order to maintain our ledger commitments. Our projections indicate that the demand Incent would be generating for INCNT by the end of 2022 is indicative of a token market capitalisation of approximately US$1 Billion, with each INCNT token trading for around US$20. At this price point Incent’s strategic reserve (20m INCNT tokens) would be worth US$400 million.

Drivers for growth

Incent has a strong track record of delivering working software with market fit. The company has both the skills and specific plans to scale the platform globally. Incent’s growth strategy is focused around three main drivers.

1. Enhancing platform capabilities and compliance. Stream + native app. Persistent code. For 2022, we plan integration with Insync, enabling cross-marketing between the two platforms and bringing on board a critical mass of consumers for Insync – enabling us to secure meaningful partnerships in the commercial and loyalty space. Alongside this we will seek regulatory approval in key jurisdictions, including the US and UK, enabling us to access these strategic and fast-growing markets without impediment, and ensuring that users have full confidence that the solution is secure and compliant.

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2. Scale influencer partnerships. The remainder of 2020 will see Incent grow its existing partnerships within the live streaming community. We will then focus on persistent content and video broadcasters on major platforms including YouTube and Facebook. Having gained traction within the digital broadcasting world, there is considerable scope for expanding into traditional media (including radio, print and TV), since Incent is platform-agnostic and drop codes can be used in any form of media.

3. Increase advertiser participation. Incent has started with advertising networks, which are the fastest and easiest way to monetise Ingage. This will continue to be the focus through 2020. As we prove the success of this approach, we will shift towards programmatic advertising, taking an automated and market-based approach to selling the Attention engendered by Ingage and optimising revenues. Ultimately, the goal is to enter direct marketing partnerships with major global brands.

Market size and KPIs

Success across these three areas would see Incent grow into a multi-billion-dollar company with global reach and commanding a meaningful proportion of global digital advertising revenues. 

At the time of writing, Incent Holdings Pty Ltd is an unlisted company funded by its token sale in 2016. The INCNT token is trading at $0.09, giving the currency a nominal market cap of roughly $4 million. Even a moderate degree of success has the potential to change this dramatically. Our three-year targets include:

Incent’s roadmap, 2017-2022

Following its launch at the end of 2016, Incent has laid strong technical and personnel foundations and is now ready to scale rapidly and globally.

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The story so far:

2017-2018: foundations and the Incent cryptocurrency

• Launched the Incent cryptocurrency (INCNT) following a successful token sale in October-November 2016 that raised over $1 million in digital currencies at then market rates.

• Gained regulatory compliance within Australia, including AUSTRAC registration. • Built a credible management and execution team, with high-calibre software

developers, plus a strong business development and marketing team. • Became a member of the Australian Digital Commerce Association (Blockchain

Australia), the industry body representing blockchain-related businesses and promoting responsible adoption of the technology. 

2019-2020: platforms and partnerships

• Built ground-breaking on-demand rewards platform, with three solutions to acquire, retain and grow audiences.

• Tested solutions across the value chain. • Formed partnerships with Streamers Connected (9,000+ live streamer influencers)

and the Bomb Squad (900 members). • Formed advertiser partnerships with NativeAds, and exploring partnerships with

commerce and Crypto exchanges.

2020: Scaling

• Platform expansion & compliance ◦ Launch sustainable code for scaling  ◦ Oct 2020: Compliance focus in US & UK 

• Influencer expansion ◦ Aug 2020: Expand streamer partnerships, targeting 10,000 influencers ◦ March – Dec 2020: Expand to YouTube broadcasters and influencers ◦ Target: 20,000 influencers by end of 2020

• Advertisers expansion ◦ Pitches to key programmatic ad networks via Native Ads ◦ October 2020: Direct pitches to Advertisers

2021-2022: Growth focus

• Influencer expansion ◦ Target 400,000 Influencer partnerships across multiple platforms by end of

2021

• Advertisers expansion ◦ Continue pitches to ad networks via native ads

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◦ Direct pitches to key brands ◦ Target multiple partnerships with brands and ad networks

Investment pitch

Incent is targeting an eight-figure raise from venture capital, family offices, HNWIs and other strategic investment partners. Investment will be used to scale the platform rapidly across the world.

Team

Incent is being built by a team of talented software developers and experienced marketing professionals. The core Sydney team comprises 14 employees, working in the company’s Darlinghurst offices, with additional people dispersed around the world, including the US and UK.

Core team

Rob Wilson, Founder and CEO Rob Wilson spent 25 years in the Royal Navy, culminating in command of HMS Somerset. Following the 2008 economic crisis, he began to explore the global financial system and markets, and has taken an active interest in digital currencies since 2012. In 2013 Rob founded BitScan, a Bitcoin adoption hub that would grow into the largest directory of crypto-accepting businesses in the world. Incent Loyalty was born out of the insights gained from this project, and the struggles experienced by both small retailers and everyday consumers.

• Brian Steel, COO • Rowan Last, CFO • Sergey Ischenko, CTO • Jaxon Valentine, Commercial Director • Tara Kemp, Head of Marketing

Focus areas Details Investment proposal

Oct 2020 May 2021 Dec 2021

Solution and platform

enhancement

1. Building persistent code technology

2. Ongoing platform investment

$2 million $5 million $15 million

Ecosystem growth 1. Scale global office and people

2. Build partnerships and scale influencers

3. Build programmatic ad pilot

$7 million $23 million $70 million

Compliance 1. Compliance in US market

2. Compliance in UK market

3. Ongoing compliance costs

$1 million $2 million $5 million

Total $10 million $30 million $90 million

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• Eric Azizian, Growth Marketing • Matthew James, Senior Engineer • Ludmila Sinica, Engineer • Zac Powell, Customer Success

Advisory Team • Mark Edwards (MVP Capital) • Cory Williams (MVP Capital) • Jon Malach (CEO, NativeAds)

Brand Ambassadors • Luke Taylor (UK DLive Streamer – 400,000 followers) • Sam Driver (UK Twitch Streamer – 56,000 followers) • Mike Boom (US DLive Streamer – 10,000 followers) • Paulie Esther (US YouTuber – 47,500 subscribers) • Jefferson Dos Santos Fontan (BR Youtube Streamer - 85,700 followers)

Discord Community Manager • Kayla Adams (US DLive Streamer - 4k followers)

Conclusion

Incent is a blockchain-powered platform that addresses the shortcomings of conventional loyalty, using cryptocurrency rewards to enable anyone to incentivise anything, anywhere and at any time. The Ingage solution provides an effective way for advertisers to access influencer marketing and compete in the attention economy, and for streamers to increase engagement and monetise their audiences. Critically, Incent aligns interest between stakeholders, and treats consumers as active participants in a campaign. This has already proven highly successful in the millennial segment, but INCNT can be used to reward any digitally trackable action.

Incent is driven by the INCNT token, which is distributed to stakeholders in the value chain (including streamers and their audiences), and trades freely on the global open cryptocurrency market. As a token of fixed supply, Incent is a scarce resource that will revalue with the additional demand provided by advertising revenues and additional sources of income. 

After successfully trialling Ingage with the streaming community, Incent is now seeking further investment to scale its partnerships with advertisers and streamers.

Disclaimer

This paper does not constitute any general or personal financial product advice (as defined in Section 766B of the Corporations Act). It is meant to be informational and of a general nature only. You there need to carefully consider whether this information is relevant to you in light of your particular needs and circumstances. Please consider your finance carefully and spend responsibly.

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Links and further resources

• Incent website: www.Incent.com • Introduction to blockchain

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