FAQ
  • Sponsy is a decentralized platform that makes use of modern technologies, including blockchain, to organize sponsorship deals of all kinds. By automating majority of operational processes with smart contracts and making communications between sponsors and sponsees as easy as possible, Sponsy drastically reduces transactional costs, saving customers money and time. Sponsy will be released in the form of several products designed for different types of Sponsy network members: sponsors that want to sponsor, sponsees that want to get sponsored and experts that perform all the work.
  • Sponsy solves key problems of today's sponsorship industry, such as maximum centralization of the market in the hands of large intermediary agencies, non-transparent transactions and unequal conditions that market participants are subject to. The widespread use of blockchain not only allows Sponsy clients to carry out safe transactions within our platform, but also guarantees utmost transparency of financial flows and partners. Sponsy does not discriminate clients on size or turnover basis. Instead, Sponsy is ready to work with any kind of brand or event, no matter whether it’s a small local family business or a large multinational corporation. Thus, we make the sponsorship market equally available to everyone.
  • As a brand or an event, you will rely heavily on the services rendered by a wide range of experts. Given the large amount of work carried out inside our network, we are obliged to present an automatic mechanism that guarantees quality of performed work. This mechanism is called proof-of-work-quality. According to this mechanism, all the information that is related to concerned piece of work gets directly linked to that work and appends itself to the Sponsy blockchain. As the work progresses, all new information related to its progress automatically adds itself to a blockchain. Once the work is completed, the customer must accept it. However, he is unable to do so before an independent group of randomly selected experts skilled in similar professional spheres – we call them arbitrators – evaluates the quality of the work done. The work is accepted if the arbitrators reach a consensus. Otherwise, the dispute resolution process may take place.
  • Traditional centralized sponsorship brokers rely on obsolete and non-optimized methods of work. In particular, they hire full-time employees who manually perform routine work on processing thousands of similar contracts. We, in turn, maximally automate the processes of concluding agreements within our network. Because of implementing a kind of freelance exchange right inside our network, we guarantee the optimal utilization of labor resources. By substantially reducing the amount of routine work performed by our experts and shifting decision-making on future sponsorship deals to our tokenholders, we are able to get rid of a whole lot of redundant employees, while providing a higher quality of services, comparing with those available on the market today.
  • The experts’ services marketplace, present in Sponsy, resembles a typical freelance exchange. As you know, exchanges impose a large markup on prices charged by freelancers, usually about 20%. Also there are transaction costs. We do not plan to profit from the services rendered by experts within our network. This allows our experts to set prices 20-25% lower when comparing to other freelance platforms. By charging such low prices for high quality services, we expect to receive heightened attention from companies interested in sponsorships.
  • Our team developed the Sponsy Safe Deal algorithm, which guarantees the security and transparency of all transaction conducted within the Sponsy network. The key advantage of Sponsy Safe Deal lies in the distributed ledger, which stores all the information related to the transaction: the time when contract enters into force, details of the parties to the transaction and other auxiliary materials. As the deal progresses, additional details are added to the blockchain. No data can be modified or removed. In case of controversial situation emergence, independent arbitrators will be able to instantly see the whole picture of a transaction, track the sequence of actions undertaken and ultimately find the guilty party. It is important to note that each transaction that is carried out within Sponsy network automatically relies on Sponsy Safe Deal mechanism.
  • As mentioned above, the use of smart contracts gives Sponsy an opportunity to get rid of redundant monotonous work. We created clear mechanism for solving every possible kind of issue that may arise during sponsorship deal. By abandoning fixed full-time staff involved in the resolution of sponsorship issues in favor of a decentralized network of experts, we get a possibility to respond dynamically to sponsorships services’ demand fluctuations by regulating the price of expert services.
  • Despite the fact that Sponsy constitutes an infrastructure solution, generally designed for parties interested in sponsorship activity, any owner of SPS tokens can make profit using the Sponsy Token Lending mechanism, which we are going to implement within our platform. This mechanism allows you to lend tokens to other members of the Sponsy network though a convenient online interface and to make money by splitting the compensation, received for experts’ services, between the creditor and the debtor. In addition, SPS tokens entitle an owner to participate in a variety of branded events and VIP services, information about which will appear later. Also, as a Sponsy tokenholder, one can vote on a multitude of issues.
  • No, there are no restrictions! Any company can apply to become a Sponsy member. Candidate companies may receive dedicated recommendations based on the result of evaluation of their financial and public information.
  • Yes. Non-profits are charged a flat 5% fee when sponsored. The fee is usually sufficient to pay for services rendered by experts. It is important to note that exclusively 501 (c) (3) corporations are eligible for such conditions. Other types of nonprofits are also charged with smaller fees. For more details, please refer to Section 7 in Sponsy WP.
  • Sponsy business is directly connected with processing and storage of large volumes of personal information of Sponsy network’s members for extended periods of time. For obvious reasons, we cannot place such information in a public blockchain in an open readable format. We only store encrypted information and provide owners and concerned parties with private key to access it. Concerned parties may include arbitrators during the resolution of dispute. We guarantee the use of the highest standards of security in the centralized storage of personal information.
  • Experts play significantly important role in Sponsy network, because they are responsible for doing all sponsorships-related work. All types of experts that may be required during the sponsorship transaction are available for hire across Sponsy network: software developers, designers, architects, engineers, audio and video production specialists, translators, lawyers of all spheres, researchers, scientists, advertising specialists, accountants and others. A dynamic discount is applicable on experts’ services. The size of discount depends on type of expert. Detailed information about Sponsy experts is available in Appendix A in Sponsy WP.
  • At first, we would like to focus on music and sports events, as well as conferences and exhibitions of all sizes. Later, after having accumulated some experience, we will start working with every sort of event that requires sponsorships.
  • Our competitors are traditional sponsoring agencies, such as CAA, Wasserman Media Group, Boras Corp. and others, since an impressive market share is concentrated in their hands. In addition, we closely follow the development of other modern online solution, such as SponsorMyEvent, GetSponsoredFast, PearUp and others.
  • TokenStars has a fundamentally different business model and target audience. It works exclusively with sports celebrities. Sponsy offers sponsorship of athletes as well, but is certainly not limited to only such kind of deals.
  • Sponsy is an infrastructure solution that is widely demanded in today's world full of sponsorships. The sponsorships market is huge – according to some estimates, it is forecasted to exceed $90 billion of annual investments by the year of 2019. Despite its size, the sponsorships industry has many problems, which mostly arise from inability to adapt to new technologies. We offer a solution that will not only simplify, speed up and reduce the costs of implementing today's sponsorship deals, but will also support new markets of small and medium-sized businesses that are well aware of all the benefits sponsorships bring, but are not able to engage in sponsorships due to inconvenient conditions on the market today. Moreover, Sponsy network strongly relies on its SPS token, which guarantees its ever-increasing liquidity and demand. Thus, the growth of marketing services and deep utilization of SPS token are key factors that ensure the prosperity of Sponsy platform.
  • As soon as we start our business, we will start working with brands and events across US, EU countries and the UK. After accumulating enough experience, we plan to expand operations to Australia, Canada and countries of Asia-Pacific region.
  • According to numerous consultations conducted in different jurisdictions, we declare with confidence that the SPS token is an utilitarian token and is not a security. The SPS token does not generate passive income and is not intended to generate profit at all. The SPS Token carries voting function, acts as a payment instrument and represents a kind of ticket that opens access to exclusive events and opportunities. Thus, SPS token is implemented as a combination of a token-as-currency, token-as-discount and token-as-membership.
  • Nothing happens. Voting does not imply any SPS withdrawal.
  • Anyone skilled in spheres that are of demand across Sponsy network may join it as an expert. One must provide documents confirming one’s identity to apply for an expert position. Then, candidate must provide various materials and links proving his professional experience and skills. These can be examples of previous work performed or personal portfolio. Designers, for instance, may show off their skills in form of Behance or Dribbble profile. Other experts of similar professional skills will analyze the candidacy and decide on whether the candidate would join Sponsy. Sponsy allows experts with no sufficient previous experience to get in. These candidates have to perform several test challenges.
  • Not really. You must use SPS to take full advantage of Sponsy features. Of course, you are always free to pay Sponsy members outside the network using any other currency. However, in this case you will lose the ability to initiate a safe deal and, consequently, to resolve dispute automatically and quickly in case of conflict. Also, you will not be entitled to receive discounts on experts’ services. That’s why we believe that Sponsy clients will mostly rely on SPS to carry out transactions that would create liquidity.
  • No. SPS tokens are only required during operations within Sponsy, such as voting, sponsoring and others.
  • Four products will be released as part of Sponsy. Three of them represent consoles intended for sponsors, sponsees and experts. They can discover new partners, collaborate with experts and conclude deals inside these consoles. The fourth product is an interface that can be accessed by any person in order to discover companies represented in Sponsy and learn more about their requests and characteristics. All the above products will have a convenient and beautiful interface, available both as an online application and as native clients for computers and smartphones.
  • According to our business plan, we need about $ 14M to finance our operations over the next 4 years. This amount includes employees’ salaries, expert drawing, marketing and other expenses. Based on these calculations, we set the goal to collect up to $40M during the ICO. We are placing a hard cap of $40M.
  • Unlike typical sponsorships intermediaries, we do not charge multiple commissions for different types of services and do not demand a fixed upfront fee before starting to work with some company. Our business model is primarily based on charging commissions from the sponsored amounts. The exact commission size varies depending on the type of event or business being sponsored and cannot exceed 15%. Commission charged already includes the costs of experts’ services. We also make profit by offering instant conversion of SPS tokens to other currencies and vice versa. We provide services for lending SPS tokens and charge flat 15% fee of loan interest.
  • SPS tokens will become tradeable on various exchanges. We also offer a mechanism of Sponsy Instant Conversion that is intended for clients who are too busy to participate in exchange trades. This mechanism enables anyone to instantly buy or sell SPS tokens at an exchange rate that will differ from current market rate by 3% in our favor.
  • No. Each user of Sponsy will receive an automatically generated wallet after registration in the system.
  • They get burnt in accordance with smart contract, creating even bigger deficit across SPS market.
  • Yes.
  • SPS tokens are deeply woven into the structure of Sponsy network. They are used to carry out almost every transaction within it. Users rely on SPS to pay for experts’ services and to sponsor events globally. Using SPS as a payment instrument entitles you to get a discount of up to 25% on experts’ services.
  • We cannot guarantee the growth of SPS price. However, given the fundamental role that SPS token occupies inside Sponsy network and the prospects for Sponsy to become a one-stop solution for handling sponsorships transactions globally, we believe that demand for SPS will grow steadily.
  • The solution we are building does not identify making profits as the most important goal. Our goal is to provide all market participants with equally great opportunities for engaging into sponsoring deals. Traditional funds tend not to pay attention to such projects. We believe that ICO is an excellent tool that makes it possible to bring ambitious projects, like ours, to life. The funds collected during ICO will be used to finish the development of the platform, to find new partners and build the necessary infrastructure.
  • We make every possible effort to protect our product from problems caused by internal difficulties and external general crypto-currency troubles. For these purposes, we are creating a special purpose fund called the Sponsy Sustainability Fund. Voting among tokenholder will be conducted before withdrawing money from this fund. The fund will serve as a kind of airbag guaranteeing the stable development of Sponsy. In particular, the fund can be used to support SPS market during so-called pump & dump schemes, which many crypto-currencies fall victim to. Sponsy may decide to sell SPS at low prices in the event of excessive SPS inflation or, conversely, to buy back some SPS from the market in case of SPS deflation.
  • The exact date and time of Token Sale period will be announced later.
  • Yes. The beginning of the presale will be announced later. Purchasers can expect bonuses when buying SPS tokens during pre-sale. To participate, you must get whitelisted.
  • A total of 80,000,000 SPS tokens will go on sale.
  • We are negotiating the inclusion of SPS tokens in some leading cryptocurrency exchanges. Tokens will be listed within 21 days after the token distribution.
  • During the presale, the minimal required purchase amount is 400 SPS. During the main Token Sale, the minimal required purchase will be reduced to 10 SPS. The maximum purchase amount is not limited.
  • The price of SPS will vary depending on the date of its acquisition and depending on the amount of SPS purchased. The sooner and the more tokens you buy, the less SPS price is going to be. Information on the current SPS price will be published at https://sponsy.org.