Purchase a Big3 team for $500k USDC

What is being requested?

• $500k USDC upfront for team purchase.

Why are funds needed?

To purchase a Big3 basketball team (specifically all 25 Fire NFTs to be sold for a single team).

Why would we buy this?

Krause House is currently in its’ “credibility” phase, which is to prove credibility in decentralized sports ownership. This process has predominately been to acquire minority positions in major leagues & majority positions in international or alternative professional basketball leagues.

The Big3 falls into the latter category and offers us an opportunity to provide legal, operational, & financial mechanisms to build out credibility of our approach. Additionally, the Big3 leadership is committed to working closely with us as a DAO partner.

Krause House will purchase all 25 of the Fire NFTs with the $500k USDC. There will be 975 Gold NFTs for our team, 500 of which we will control the whitelist for. The remaining 475 will be sold to the public / whitelists the Big3 will run. Gold NFTs will retail at $5k each, but for our whitelist they will be slightly discounted to $4,500 per Gold NFT. We are not required to purchase these, but our community will access if they choose to participate. Once the window closes, the remaining will be made publicly available.

What are the perks?

Fire NFTs each come with perks (like tickets to events and other access type perks). We’d also get royalty share (80%) on merchandise of the team. Governance would be limited, as Big3 prides themselves in being a player empowered league.

Additionally, the Big3 leadership team is committed to partnering with Krause House long term to scale their community building. KH would like to be involved as a DAO partner to assist with more DAO-oriented operations such as community, governance, & contributors.

How does this impact the average Jerry?

All details involving operations, access, & governance will still need to be determined. Generally speaking, we will build mechanisms to have Krause House Ticket Holders participate in aspects of the Big3 team purchased. Examples of this would be ways to engage our community & distribute free tickets to the games + other perks associated with the NFTs. Additionally, determining ways for us to bring helpful analytics and/or strategy to our team coach will need to be developed.

At a high level, this team will give us an experimental space to test components of our decentralized sports operations (more specifically merchandising & access).

We will create proposals for further distribution of access / perks to Krause House Ticket Holders.

How will I know this is executed properly?

KH will send $500k USDC to the Big3 in exchange for 25 Fire NFTs via their smart contract.

What happens if someone runs away with this budget?

We’ll be executing a smart contract with the Big3 to exchange $500k USDC for 25 Fire NFTs. Running away with the budget will not be possible if the smart contract is execute properly.

---

Ownership

---

Perks

BIG3 announced an innovative, new approach to team ownership in professional sports. The league will introduce decentralized team ownership, providing fans with the chance to own a stake in the 12 teams in the BIG3. Fans will have two ownership options comprised of 1,000 editions - 25 Fire and 975 Gold.

All editions include voting rights towards team actions, priceless gameday experiences and VIP tickets to all games, and limited-edition team, league, and championship merchandise and memorabilia. Fire editions also include exclusive intellectual property and licensing rights to team names, logos, and merchandise as well as additional gameday activations.

Additional Ownership Benefits Include (among others):

● First Rights to Expansion Teams ● Percentage of Future Team Sale ● Championship Game Perks for Owners of Participating Teams, including Receiving Championship Rings at Presentation Ceremony ● Player and Coach Meet-and-Greets ● Signed Fireball ● Access to Team Practices and After Parties ● Selection of Season Awards Such as Player of the Week, All-Star Teams, and Highlights ● Strategy Calls with Team Coach and Captains ● Weekly Referee Call ● Multiple Calls with Co-Founders Ice Cube and Jeff Kwatinetz and Commissioner Clyde Drexler ● BIG3 NFT’s

---

DAO Partners

Flex & Commodore have had lengthy conversations with the Big3 team (Jeff, Ice Cube, & Sean). They’re incredibly excited to work with Krause House & understand the importance of us partnering at a deeper level with scaling their community. We’re working on outlining a scope of what that looks like, but we may not have that completed before funds are due to close this deal. The Big3 is solely focused on successfully executing their NFT sale, so we will most likely need to take them at their word for this condition.