======= INTRODUCTION

This fall, Degen Toonz enters the physical world by launching a series of 3 collectible figurines and a series of collectible trading cards in partnership with a multinational online retailer.

As you may have heard (and seen through sneak peeks), this initiative is well-advanced; design, manufacturing and shipping logistics are secured and we are moving along on schedule with the production timeline.

This initiative allows the Toonz brand to expand well beyond the borders of web3 reaching a global audience in an accelerated way that is consistent with our day 1 objective of bridging the worlds of web2 and web3.

In keeping with the commitment to include our holders in our growth, we propose a revenue-sharing partnership with ToonzDao. The proposal allows us to have a symbiotic relationship that directly benefits the community through substantial profit and continued brand expansion.

======= FUNDING AND POTENTIAL RETURNS

This proposal is a one-time request of 54.5E ($100,000 USD) from the ToonzDao community wallet. This will be used for production costs of a run of 3,000 figurines (3 designs, 1000 units per) and 4,000 sets of accompanying trading cards.

The projected return for this funding would be 37E ($68,400) in profit - fully realized when all 3,000 figurines have sold. This would be the ToonzDao’s share of overall profits.

Break-even occurs at 1,570 units sold.

Profit sharing: The split of profits is GMGN 70% and ToonzDao 30%

Full details of production costs are available by written request.

======= Repayment of Funding

Retail sales revenue will be distributed in this order:

1. Manufacturer, Platform, Development, and Tax entities

2. ToonzDao repayment of funding

3. GMGN repayment of funding

4. Profit split per this proposal.

Reports detailing the revenue and payouts to the ToonzDao will be published regularly and available for verification via blockchain records.

======= PARTNERSHIP DETAILS

This proposal is designed as a single occurrence arrangement, specifically for this first run of products, but leaves room for future collaborations dependent on the performance of this first run.

======= CONCLUSION

This project is an exciting evolution of the Degen Toonz as we venture into the real world by launching a series of collectible figurines and trading cards. This strategic move to an online retail platform represents a meaningful expansion beyond the boundaries of web3, allowing us to engage with a broader global audience and further establish the Toonz brand.

The proposed initiative presents a significant opportunity to grow the community wallet that begins an attractive and viable business model where ToonzDao as a partner can gain substantial profit with reasonable levels of risk.

Our projections indicate that ToonzDao could earn up to $68,400 from figurine sales alone, with the breakeven point at 1,570 units sold. In addition, the sale of trading cards will contribute to further revenue.

Importantly, this initiative also offers potential for recurrent returns, given that successful sales could lead to additional opportunities through multiple avenues.

Aside from the financial aspect, this initiative aligns perfectly with our ethos of community involvement and shared success. By participating, ToonzDao doesn't merely become a financial partner; it becomes a critical part of our growth story. It also reinforces our commitment to the community, allowing us to share our success directly with our holders.

Finally, we are fully committed to maintaining transparency throughout this journey. Sales revenues and funds transferred to the ToonzDao will be provided on a regular basis, keeping the community informed and involved every step of the way.

We believe this opportunity will be a key driver of growth and prosperity for our community and look forward to the potential of this partnership.

=======

VOTE:

Please note: Voting results of this proposal will be tallied on a 1 wallet = 1 vote basis, and NOT weighted for the amount of assets each wallet holds.

---

Do you agree to allocate 54.5E of the ToonzDao funds for this proposal?