Sizing Potential Harem Staking Rewards

Harem’s staking model is straightforward enough that with some simple calculations we can predict, roughly, how much the average NFT staker will earn from their Harem given a small set of variables. Of course the NF in NFT stands for Non-Fungible, and this is important to remember. No two girls who are immortalized in NFTs are the same. Some like our ever popular Claressa Biggens may receive an outsized portion of traffic, while others such as the highly collectible but unfortunately ugly Eve may never be tapped for video creation even once. In all competitive fields Pareto distributions are a real thing, and adult content creation is no exception. However, for the purposes of projecting the potential value of Harem token in the future, it helps us to go through the thought exercise of seeing what average earnings for a staked NFT might look like all else being equal.

A Brief Summary of How Harem’s Technology Works

For those of who you haven’t read the relevant documents from our DYOR page, Harem’s technology is used in the following fashion:

  1. You go to our website.
  2. You upload a video.
  3. We provide you with a “Public Harem” of potential actresses. This Harem consists of girls created by our AI.
  4. You select which girl you would like to have deepfaked into your video.
  5. You pay a “per minute” video creation charge, which you will receive a discount on if you hold our tokens. The goal is to get this cost down as low as possible, but it will start off somewhere closer to $5 a minute.

A Brief Summary of How Harem’s Staking Works

For those of you who haven’t read the relevant documents from our DYOR page, Harem’s staking works in the following fashion;

  1. You buy $HAREM.
  2. You stake it in the official Uniswap LP.
  3. You receive LP tokens.
  4. You use lock.finance to lock those tokens for a certain period of time.
  5. You receive an NFT containing one or more girls who can be used with Harem’s API to be deepfaked into videos (adult or otherwise).
  6. You can then stake your NFT girl on the Harem web platform, allowing users to insert her into videos using the Harem API, and taking 50% of the profits Harem makes from that API call for yourself.
  7. You can also sell your NFT if you want, or keep it to use for your own video creation efforts or personal use, that’s your business. But that’s not really relevant to the subject of this article.

How Much Money Will a Staked NFT Make? Some Scenarios.

The inherent non-fungibility of NFTs aside, on a large enough scale this should boil down to a rough average of earnings per NFT. Note that these scenarios are entirely arbitrary, and more of a thought experiment than anything else.

Some of these scenarios reference Harem creating a certain percentage of Pornhub’s traffic. In the interest of full disclosure, I want to state that it is not my goal to take some of Pornhub’s Traffic. I want to replace Pornhub and do to them what Netflix did to Blockbuster. We can create better content than their performers can, we can create it cheaper than they can, we can create more content than they (or any group of humans) ever could, and we can create it faster than they can. I think on a long enough timeline, we will eat their lunch. However, for the purpose of being more conservative than my own personal outlook, I am instead limiting us to a small portion of their TAC or “Total Addressable Content” for several of the scenarios outlined below.

Assumptions:

  1. Harem’s goal is to have in excess of 10,000 fully deepfakable actresses in the Public Harem by the end of 2021. We are currently on track to achieve that goal, let us assume for these models that we achieve it and there are exactly 10,000 girls available in the Public Harem.
  2. Harem has a further goal of having 90% or more of its available girls in the Public Harem be owned and staked by $HAREM holders. Let us assume for the ease of calculation that Harem’s Public Harem is 100% owned by $HAREM holders, and run through a few scenarios.
  3. Currently when Harem creates an average minute of video it costs us somewhere between $2-$2.50 in server costs, and we are charging about $4 per minute. Let us assume an average of $1.50 per minute of profit to be split between Harem and the NFT owner, when charging consumers who do not own enough $HAREM to get a significant discount on server usage.

Scenario 1: Harem Gets to 1,000 DAU

For the first scenario imagine that Harem manages to achieve 1,000 daily active users, each creating on average 5 minutes of video a day. This would equate to 5,000 minutes of video being created a day, or 1,825,000 minutes of video a year. If this seems like an excessively large number, I promise by the time you finish reading the Pornhub link below you will realize it is a drop in the bucket. With each of those minutes generating $0.75 of profit for NFT holders that ends up with $1,368,750 in annual profits for NFT holders. Split among 10,000 NFTs that is an annual profit of $138.67 per NFT all else being equal.

Scenario 2: Harem Creates 5% of the New Content Uploaded to Pornhub

For the second scenario imagine that Harem becomes popular enough to create 5% of the new content uploaded to Pornhub. Based on Pornhub’s 2019 year in review, we know that in 2019 Pornhub had 1,360,000 new hours or 81,600,000 minutes of porn. For this scenario let’s assume that number remains wholly static. At 5% of that minute figure, Harem would be creating 4,080,000 minutes of video annually. At the $0.75 profit rate that ends up with $3,060,000 generated annually for NFT holders. Split among 10,000 NFTs that is an annual profit of $306 per NFT all else being equal.

Scenario 3: Harem Creates 1% of the Content Watched on Pornhub with a 99% Rewatch Rate

Based on the 2019 year in review we know that every minute on Pornhub, there are 11,802 hours of porn being watched. This equates to 708,120 minutes of porn being watched every minute, which is in turn 42,487,200 minutes of porn being watched every hour, which is in turn a whopping 1,019,692,800 minutes of porn being watched every day. This brings us to our final, colossal figure of 372,187,872,000 minutes of porn being watched every year on Pornhub alone.

Assume that its technology enables Harem to create 1% of the content that is watched on Pornhub every year. Further assume that 99% of this watching is content being rewatched. In other words, users are watching their favorite videos over and over again, so only 1/100 minutes being watched actually involves the Harem API call being pinged to create new content.

Well, 1% of the annual-minutes-watched porn figure for Pornhub brings us to 3,721,878,720. Discounting that by 99% brings us to a total of 37,218,787 minutes of porn newly created by the Harem API being watched on Pornhub. At the $0.75 rate that brings us to $27,914,090 in profit for NFT holders. Split among 10,000 of them that equates to yearly profit per NFT of $2,791.40.

Scenario 4: Harem Creates 1% of the Porn Watched Online with a 99% Rewatch Rate

Pornhub is the largest player in the market, and given how notoriously opaque the online porn industry is it’s impossible to know what percentage of the market they control. Let’s assume that approximately 25% of all internet porn is watched through Pornhub. For this scenario let’s assume Harem’s reach goes beyond just Pornhub’s web platform, and represents 1% of all porn watched online in general. No fancy minute by minute breakdowns needed, for this scenario we can simply multiply the previous number from before by 4 and end up with a very comfy $11,165.60 profit per NFT per year.

One of the cardinal sins in the startup world is saying “This market is $X billion large, if we can just get Y% of it we’ll all make millions!” It is the hallmark of an inexperienced entrepreneur. Ideas are shit, execution is everything. The question inevitably follows, “How do you get that Y% and keep it? Can you prove you can make that plan happen?”

Our answer is simple, and it’s the same one I gave before. We have better technology. Even right now we can turn every minute of video into a dozen, a hundred, a thousand, or ten thousand minutes of video each starring different actresses. We can do that with the click of a button. By this time next year we won’t just be replacing the faces in videos, but likely entire bodies.

One day not too long after that, we won’t need a source video to work with. Our customers will send in some Ethereum and an order for 500 hours of cowgirl POV Latinas with green eyes being creampied, and have it in a Dropbox fold by the end of the day.

This may seem like science fiction, but if you look back at the blurry assembly of pixels that was our output in 2019 you will understand how quickly this technology can develop. AI’s takeover of this market, and all content markets, is inevitable. We are first movers and we are strong movers in a field of content with no other competitors working to automate its creation. And that is how we’ll get our Y%, by having the best tech and automating the competition out of business.