D00016 - Approve Collaboration w/ Azerion to bring Onchain Tools & Collectibles to T1 Football Clubs

Authors: Colby-GET

Summary Today we’re happy to present a new DAO proposal which would see the OPEN Ticketing Ecosystem partner with Azerion, a digital solutions provider that facilitates native mobile applications for football clubs around the world.

After a number of months aligning with Azerion and showcasing to them the possibilities of onchain infrastructure for their clients, they’re very enthusiastic about the possibilities of extending their ticketing and user profile functionality within Azerion’s mobile apps.

As such, we’ve come to a tentative agreement pending DAO approval that would see the incentivized usage of OPEN’s ticket linked collectibles and collectible packs that would be rolled out on a per club basis to over 15+ club apps through Azerion for two years.

This would provide the opportunity not only to natively put onchain ticket linked collectibles and user wallets into the hands of football attendees, but open up the door to onboarding users frictionlessly into onchain experiences.

Once integration is completed for all clubs, this will consist of over 1.5 million ticket linked collectibles being issued for the 24/25 season, plus additional optional mints of ‘Collectible Packs’ that would be upsold to attendees by Azerion, with the DAO receiving royalties for each pack sold.

Specification & Implementation

Azerion will implement through OPEN:

• NFT issuances + embeddable user wallets for all tickets
• A digital collectible experience + season collectible book in-app
• Token gated authentication in-app
• Collectible packs for sale per club to attendees

In order to incentivize both the development efforts of integration and to educate and onboard clubs into offering these benefits in their mobile app flow, they have proposed a two year partnership deal in which the DAO would subsidize and incentivize integration and usage across all of Azerion’s football club partners in return for a revenue share specified below.

The DAO’s offering:

• The DAO initially covers the base 0,03ct fee for any issuances via Azerion usage over the course of 2 years, which will flow back into the DAO upon usage (incurring no net loss)
• The DAO pays 0,02ct in OPN per NFT issued as a fixed revenue fee to Azerion over the course of 2 years. Assuming the rough estimate of 1,5M collectibles issued, the total cost would come down to roughly $30,000 per year, totalling $60,000 over the full term.

In return, Azerion proposes a revenue sharing agreement with the DAO as following:

The DAO would receive:

5% of all revenue made from:

• Collectible packs sold by Azerion to attendees.
• Sponsorship income received from advertisements placed on collectible designs
• Onboarding income received from Web3 parties using the NFTs as a user acquisition tool (chains, onchain apps, onchain sponsorship campaigns)
• And any other revenue model through the NFT’s clubs come up with

At the end of each quarter, starting Q3 of 2024, balances are calculated taking into consideration any fixed costs and revenue generated by Azerion and the OPEN team. Should revenue be generated, the OPEN team will collect FIAT and on-ramp this into ETH which will then be distributed directly to the DAO treasury or alternatively to OPN stakers, pending further DAO discussions and a later vote.

In summary: This unlocks an opportunity to develop onchain fan engagement business cases that add value to Azerion’s users & deliver new revenue streams. Towards the end of the year, a review will take place with Azerion & the OPEN team, to assess potential continuation.

The User Experience

Azerion are building out a fully fledged feature within the app for the ticket linked collectibles and collectible packs, which they’re pitching as a ‘Season Collectible Book’. This book shows all games in the season as collectible outlines which can then be filled by purchasing a ticket and attending or purchasing a pack within the Azerion app. The more games attended or packs purchased, the fuller the book becomes.

Each collectible will show players from the team, blending both player cards with game information such as the score, opponent, date and location. Collectibles will also come complete with different rarities, adding scarcity to the cards collected by users.

The Business Case for Collectibles

For Azerion this is a novel feature that helps them add new value to their application offering. The two primary areas that collectibles assist with are New User Acquisition and Customer Retention. Azerion looks to get each user back into their application multiple times during a game week, with collectibles they can open up a few new ways to retain customers and increase dwell time in the football app, by revealing their collectible, seeing their collection, buying new packs and looking at their completed book.

On the other hand, collectibles incentivize new user downloads and profile creations through those attendees buying tickets direct through the ticketeer. With the structure of this deal, all tickets for home games are minted onchain, which then allows ticket buyers to download the Azerion app to view their collectibles which is the only way for fans to see their collection. Any fan that already has the Azerion app can also invite their friends to reveal their collectibles.

This is a future proofed way of increasing engagement, activity and dwell time that opens up new possibilities down the line, such as onboarding users into onchain experiences that could be paid for by dapps - such as onchain betting, onchain merchandise and more.

For OPEN, this not only cements us within the sporting world, offering a real world business usecase that we can present to other sports teams and organizations - but also is a foot in the door to offering other onchain financial services to Azerion and their Sports Teams as more functionality comes online for the DT.

Proposed sports teams as part of the deal:

Azerion will work directly with each club to pitch and integrate the collectible book experience and should each club integrate, an estimated 1.5 million ticket linked collectibles will be generated over a year, combined across the following teams:

• Fortuna Sittard
• Vitesse
• FC Volendam
• RKC Waalwijk
• Roda JC
• Dordrecht
• Graafschap
• MVV
• Helmond
• Den Bosch
• Westerlo
• Lommel
• Samsung
• Estoril Praia
• Courage
• NC FC
• Flatirons FC

Conclusion

This proposal is not only a significant maturing moment in the Ticketing Revolution DAO’s history, but marks the largest sports related DAO business deal to date and will onboard millions of sports attendees directly onchain all through their ticket.

We’re incredibly excited to be able to take this step with the DAO and community and look forward to the discussion generated and the conclusion of the DAO vote which will be open for 10 days until August 2nd at 5pm CET due to the complexity of the deal.

Should the proposal pass, then Azerion will implement functionality in time for the following season which begins this September 2024. The OPEN team will align with Azerion post-approval to cement the deal and begin implementation steps.

Voting Options For - If For is chosen as the successful outcome, the OPEN team will formalize and continue with the deal and integration, leading to an ideal outcome of integration in time for the 24/25 season.

Against - If Against is chosen as the successful outcome, the OPEN team will look to renegotiate with Azerion to look for a favourable outcome that could lead to the continuation of the deal or decline in outright is no such terms can be met.

Voting on this proposal concludes at August 2nd at 5pm CET