Production Fees, Taxes & USDC Film Profit Distribution

Everything you need to know about fees and USDC profits.

Purchasing Fees

When purchasing a STUDIO, the fees will be split as follows:

• 80% goes to the rewards pool

• 15% goes to the LP

• 5% goes to the treasury

Claim Tax

When claiming FILM from your STUDIOs, you will be taxed at a fixed rate of 10%. We never double tax. There is 0% sell tax from the protocol. However, platforms like TraderJoeXYZ may have their own fees apart from us.

Sell Tax

0% forever. After the 30 day post-launch tax. This helps prevent whales and bots from taking advantage of Hollywood Land.

At launch, a sell tax will be set to 50% to discourage botting activity, and this slowly drops to 0% over the following 30 days.

Production Fees

The backbone of Hollywood Land are production fees. It's how STUDIOs and PRODUCERS make real movies.

From time to time, Hollywood Land will issue calls for Production Fees, paid from STUDIOs via USDC. These production fees go to the treasury which are used to fund real world movies.

Production fees are mandatory in Hollywood Land.

PRODUCERs live in Hollywood Land to make movies!

We encourage those who do not want to make movies to sell their NFT's on the marketplace to a PRODUCER that wants to participate in the magic of filmmaking.

Production fees are paid per STUDIO NODE.

Ex. If we are making a film with a budget of $1,000,000 and Hollywood Land has 10,000 active STUDIOs, each NODE will receive a production call for $100 USDC.

From the time a Production Fee is announced, PRODUCERs will have 90 days to pay their production fees & stake their STUDIOs.

STUDIOs that choose to not pay production fees will stop producing FILM until that NODE has paid a recent production fee call. Participants can sell their NFT and the new owner can activate it again by paying the production fee.

Proceed Distributions & Film Profit Buy-Backs

Each film Hollywood Land Produces will likely generate revenue from distribution through its theatrical & online partners.

All net gains from the sale or revenue of the real world movies will be distributed in the following manner back to all participating STUDIO owners:

1. 25% net proceeds used for token buy-back of FILM to assist in a strong underpinning token price.

2. 75% net film proceeds converted to USDC and auto-deposited back, pro-rated to each participating STUDIO NODE.

Preferred return to presale participants from real world film profits, paid via USDC.

All Net film proceeds will first go toward reimbursing presale participants until all presale USDC has been reimbursed. Thereafter, all proceeds will be split pro-rata based on STUDIO participation.

If a Real World film is successful, all net proceeds from Distribution will go back to participating STUDIOs via USDC and into the protocol via buy-backs, ensuring a strong token price & protocol revenue stream.

Rental Fees in Hollywood Land

Each node has a monthly maintenance fee of $5 USDC. Fees can be paid monthly, quarterly, or annually. Fees go to the artists/designers & developers to continuously grow Hollywood Land.