ECSTASY

Abstract

Ecstasy is a decentralized platform for trading 18+ rated tokenized model photography. The platform leverages blockchain technology to guarantee fair compensation for models who want to sell their photographs in transparent and reliable payment criteria and rules. The platform is built on the Binance network and is powered by its native cryptocurrency, XTC. The coin will facilitate payments and revenue management for photographers, rights holders (models), and buyers. The coin gives users new possibilities in the business of digital photography because owners or copyright holders will be able to split revenues between themselves based on what is based on the smart contract. Users can create and trade their tokenized model photos (NFTs) in a secure and decentralized manner. With the ability to take full control of your photography copyrights, you can generate more royalty revenues through split copyrighting a m o n g other methods. To protect the users, the platform has ensured only existing content creators can invite new content creators. Each content creator receives 5 invitesin total.

This whitepaperisto present Ecstasy Decentralized Exchange and its native cryptocurrency, XTC. The information herein should not be construed to represent a conclusive or exhaustive representation of the project or to imply any element of a contractual relationship between the project and potential investors. The sole purpose of this whitepaper is to provide relevant and reasonable information to potential investors of Ecstasy Exchange or XTC coin holders to enable them to make a reasonable decision before they undertake a thorough analysis of the company with the intent of participating or investing in the project. The content of the whitepaper does not contain anything that should be deemed as a prospectus soliciting for investment, nor interpreted to mean a sale or issuance of interests, digital assets, orsecurities. The document has been composed in accordance with, but not subject to, laws or regulations of any jurisdiction designed to protect investors, projects, and joint ventures; (iv) execution of the Company's vision and growth strategy, including with respect to future M&A activity and global

growth; (v) sources and availability of third-party financing for the Company's projects; (vi) completion of the Company's projects that are currently underway, in development or otherwise under consideration; (vi) renewal of the Company's current agreements; and (vii) future liquidity, working capital, and capital requirements. Every forward looking statement is to ensure potential investors understand the management’s beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating aninvestment. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicablesecuritieslaws. The reader is cautioned not to place undue reliance on forward-looking statements. This whitepaper may be updated, from time to time, whenever there is a strategic change of business model or strategy without prior notice to readers. Every updated version of the whitepaper will be made available on our website immediately after its issuance.

The storage of products moved online a few yearsago. However, owners of these digital assets have struggled to manage or control the use of their assets due to theft, copyright issues, and counterfeits. Some users willing to buy or get the license to use these digital assets have also struggledto get access to the original copies as counterfeits fill the market. In many cases, a unique image is posted online and the next moment everyone can access and download and use it as their own. Moreover, each platform would use its system and owners to register their ownership in multiple incompatible proprietary databases with a different user interface.

1.1. The callenges of photography theft

Reports indicate that approximately 65% of professional photographers have had their work stolen over 200 times1 . Even amateur photographers are not spared, as 44% of them have reported havinghad their photos stolen. Most of those doing the stealing are bloggers and social media users, with the majority of them being ignorant that they are committing a crime. But shockingly, 28% of those thefts are committed by commercial entities, who often editthose imagesfor advertising.2 1United Nations Conference on Trade

and Development (UNCTAD) Report With these challenges, the need for a simple solution allowing photographers to securely store their products’ proof of ownership, authenticity, and other documentation, like warranties, in one place, can never be overstated. They can also retain complete control over how, when, and by whomthisinformation can be accessed.

The concept of digital engagement has been a challenge too. Due to the fragmented nature of thecurrent networks, user/customer records are often unreliable and even, in some cases, non-existent.

Even as digital asset (photograph) owners desireto maintain close relationships with their fans in a platform that can securely record interactions between them, they are not easily reachable. In other words, the original owners of digital products (photographs) are not easily traceable by people who want to use their works. This often leads to disjointed communication. The ability to maintain direct contact with the digital asset owner, without an intermediary, is a great way of rewarding creators.Indeed, the ultimate benefit of reaching the true owner of a digital work is to allow users to access theassets without involving fraudulent actors.

Chapter 2:
Problems with the current digital assets records

Lack of Authenticity & counterfeiting

The global community hasstruggled with counterfeiting for many years. Fake or manipulated images propagated online, particularly through the Web and social media, can deceive, emotionally distress, and influence public opinions and actions. Yet, between 2008 and 2013, counterfeiting increasedfrom 1.9% of the total volume of international trade to 2.5%, a figure that represents more than $460 billion worth of transactions.3 The trend has led to the loss of millions of jobs, increased criminal activities, lost taxes, deaths, etc.

Proof of Ownership and privacy issues

Proving ownership is necessary for all users as it allows them to access such services as insurance or creator guarantees. It also protects them from theft. The need for proof of ownership should always be balanced against the need for the owner’s privacy, as any record of ownership could potentially identify them as targets for criminals.

While the current system may have seamless registration of works, their model puts owners/creators’ data privacy at riskbecause the latter has to submit personal details to have their works registered. Furthermore, customers are not in control of their data. These databases are usually the sole property ofthe platforms and do notallow customers to share access easily with a third party.

Proof of purchase

Claims of ownership are usually confirmed with proof of purchase such as an invoice or a receipt. These titles of ownership are easily lost, misplaced, or destroyed because they are either not digitized (paper receipt) or, if they are digitized, not safely secured (no backup). Moreover, these proofs of purchase can easily be altered or falsified. While an original creator can check his/her records, a third party (second buyer, insurance company, etc.) will suffer a high administrative burden and operationalcosts to verify any information provided by a claimant with the seller, particularly as retailers are generally not in a position to provide evidence of a purchase from a past customer

Authorized third parties

The current systems can easily be breached by unauthorized third parties, which can lead to serious consequences of damaged reputation and undermining other users’ experience.

Data Protection Regulation & cybercrime

The scale of data breaches is enormous. Every day, nearly five million sets of data are lost or stolen; this means that each second of every day, 57 records are affected.4 The increase in the number of data breachesover the past few years has raised greater concerns about who is responsible for taking care of the world’sdata. Individuals hear every week that their personal data have been compromised, while corporate entities and brands realize how vulnerable they are to hackers who would wish to cause them financial and reputational harm.

Even with the support of the most talented cyber-security specialists, committed black hats know how to exploit software breaches, and companies can onlytake action after these breaches have taken place.

Even with the support of the most talented cyber-security specialists, committed black hats know how to exploit software breaches, and companies can onlytake action after these breaches have taken place.

Ecstasy is an exclusive NFTs marketplace and ecosystem for selling and buying 18+ rated photography for models. Ecstasy is built on the Binance decentralized network, Binance Smart Chain (BSC). BSC was chosen for this project because of its speed and low transaction fees, which makes it highly attractive for us and our users. Users of the platform can create and trade their tokenized model photos in a secure and decentralized manner. The team behind Ecstasy noted that NFTs have a very specific and useful set of properties which make them well-suited to solve many of the current problems with digital photography ownership and trade. On the Ecstasy platform, yo u t ake full control of the creative copyrights of your adult photos and generate more revenue with ourseamless managementsystem.

To protect the users on the platform, we have created a system where a new content creator canonly join on invitation by another current contentcreator. Each content creator receives 5 invites in total.

3.1. Ecstasy Coin (XTC)

Ecstasy platform has been designed to work withits native cryptocurrency, XTC. The coin will be used to purchase NFTs, and sellers can also acceptit as a medium of exchange for their tokenized photography assets.

3.2. Benefits of Photography Tokenizationon Ecstasy

Create directNFT licensing

Ecstasy enables license holders to connect directly with other holders of NFTs’ property rights. Here you’re able to automatically create new NFT licensesusing smart contracts.

Decentralized file storage and sharing

Secure storage- your photos are securely stored inour cryptography backed decentralized cloud database.You take charge of everything, including controllingaccess, generate comprehensive reports on the trend of usage, and get insights into new methods of generating revenue with your licensed NFT copyright.

More copyrighting and royalty revenues

Ecstasy employs the latest blockchain technologyto verify photos shared on its platform. This will guarantee the accuracy of the multiple split payments for a lifetime. The revolutionary approachto rights-holder payments will help you and everyone with the copyright of your NFT asset to claim their share, giving everyone a chance atearning deservedly. While it’s not easy to create multiple versions of a digital photo in the traditional photo markets,Ecstasy has made this possible, allowing users tocreate various copies and sell them based on the fractional ownership license. The net benefit is increased revenue earning for the photographers

The platform also gives you trouble-free royalty payments as a copyright owner. As a photographyrights-holder, you’ll not have to wait to receive payments because payments are set to work instantly. The platform is designed to manage micropayments through agreements of a smart contract.

Ensures authenticity

One of the biggest barriers to photography is to establish the authentic work from the copied or modified copy. It is this ease of modification of a photo that NFT istrying to eliminate with the help of blockchain technology. A tokenized photo will enable buyers to verify the authenticity of a picture and determine its value.

Eliminate fraud and theft of intellectual property

Fraud and theft of intellectual property and the world of photography are like Siamese twins in the old system. Stock photos are all over the place,whose original owners are not traceable. With Ecstasy, one will be able to tokenize their photo, claim intellectual property right for a lifetime, or sellitto another entity undertheirterms.

Higher transparency and better security

Blockchain technology is immutable, and any digital content stored in it cannot be altered or manipulated. The assurance ensures all the parties involves in the trade are fully aware of the state of the item being traded. This transparency helps boththe seller andthe buyer.

On the Ecstasy platform, traders are all protected from any fraudulent or scam activity. Blockchain enables users to trace the ownership, submit theirbid, or desire to buy under no threat of insecure transactions ever taking place. Investors on the photos can easily trust their money within the network.

Flexible and extendable NFT infrastructure

A tokenized photo will be directly sold between sellers and buyers on Ecstasy, allowing the partiesto decide on how the transaction will take place.

This freedom is not available with the traditional platforms, which do not give sellers and buyers theluxury of choosing how their photos can be shared.

Minimized cost oftrading

One of the biggest challenges facing the photography industry is the high transaction costs involved in the trading of photos. With tokenizationof photos, photographers will be able to overcome this challenge as the expensive commission is eliminated.

• 5% tax on each buy or sell of the coin
• 2.5% goes to a wallet as liquidity in the case of a drop in a price during a live auction to cover a dip in coin price. Example: Buyer bids $60 worth of XTC with five minutes left in an auction and his $60 worth of XTC drops to a value of $58.80. The liquidity pool covers the $5 loss that goes directly to the model to ensure that the model doesn’t lose money.
• 2.5% gets redistributed to holders to incentivize holding- We set a certain limit to the insurance fee. E.X (Only covers 2% if it drops more than 2% auction does not go through).
• We cover the loss only if the price of the bid in XTC drops below the minimum asking price the model auctioned. For example, she lists her photo at $100 worth of XTC someone bids $110 but by the end of the auction the XTC is now worth $90 and we have an insurance policy in place that covers a certain percentage of the loss.

• Beneficial to the all parties by ensuring the model is getting paid- It’s like a bank that insures up to $400,000 for account holders in case of bankruptcy Coin Stability
• Lock away some X% of the coin so as time goes on an X amount of coins are released to help the stability.
• As investors purchase the coin, their money is locked in for an 12 amount of time, avoiding pump and dump scenarios
• Anti-Whale- Limitations during presale to avoid the instability of the coin.
• Reselling of model content- Models can select what percent of royalties they get back. Additionally, 2.5% is sent to Ecstasy. Example: Content creator sets a 10% royalty, the full 10% is deducted and immediately sent to the creator, with an additional 2.5%. Total deduction from the resell would be 12.5%