LBRYPLN

ByJeremyKauffman,Founder,LBRY
July2016

TableofContents

TableofContents
AboutThisDocument
Vision
Mission
Opportunity
TheLBRYNetwork
Parties
Example
KeyInnovations
Economics
Notes
ModelandProjections
Exit
Liquidation
Sale
Team
CoreTeam
JeremyKauffman,ChiefExecutiveOfficer,Founder
MichaelZargham,ChiefTechnicalOfficer,Founder
JoshFiner,ChiefOperations&GrowthOfficer,Founder
MikeVine,ChiefMarketingOfficer,Founder
AlexGrintsvayg,ChiefInfrastructureOfficer,Founder
JimmyKiselak,CoreDeveloper,Founder
JackRobison,CoreDeveloper,Founder
JobEversMeltzer,ProjectEngineer
ReillySmith,Curator
AlexLiebowitz,AppDeveloper
AdvisoryTeam
StephanKinsella,LegalAdvisor
AlexTabarrok,EconomicAdvisor
MichaelHuemer,EthicalAdvisor
Objectives
Priority#1:Grow+PolishLBRYBeta
Priority#2:ContinuetoRaiseFunds
Priority#3:ExpandRelationships
Conclusion
Questions?

AboutThisDocument
Usingthemostliteralofdefinitions,thisdocumentisabusinessplan.Formally,if:

A:LBRYisabusinessthatprovidesaccesstoinformation
B:Thisdocumentoutlinesourvision,mission,strategy,team,status,andobjectives

Then,

A+Bthisisabusinessplan

Underamoreconventionalparlance,thisdocumentisnotabusinessplan.Itdoesnotadhereto
allstandardconventions.Itissimplyanattempttoexplainwhatweredoinginawaythats
frank,clear,andjustasmidgenpersuasive.

Vision
Everyfactateveryfingertip.

Aconsequenceoftechnologyevolvingfasterthanculturalnormsisthatasinnovationhappens,
existinggenerationsattempttoadaptnewtechnologytoexistingnorms,whilenewgenerations
revisetheoldergenerationsnormsbasedonthetechnologybeingstatusquo.

Whencameratechnologybecameavailabletothemasses,therewasa
seriousdebateovertakingpicturesinpublic.

Wheredowemakethismistaketoday?Oneareaisinthesystemsweusetohandlethe
distributionofknowledge,art,culture,andinformation.Accustomedtoaworldinwhichan
instanceofknowledgeormediawasstronglycoupledtoaparticularmedium,wevebuiltdigital
systemsunderthesameassumptions.

Digitaldataisinfinitelyeasytoreproduce,store,andcopy,yetweattempttoregulate,police,
andprovisionitinwaysthatfeelmorelikeaphysicalgood.Corporationscompeteoverwhocan
keepthemostdatalockedaway.

LBRYisanattempttoupendthatdynamic.Itsays:

Letsbuildasystemthatencouragessharedparticipationratherthanmutualexclusion.
Letsmakethatsystemaseasy,cheap,andsecureaspossible.
Letstieourownhandsinthedesignofoursystemsothatthesystemistrustworthyand
transparenttoitsusers.Leavethecreatorsandconsumersincharge,notus.
Letsarchitecturethesystemandincentivestructurethatencouragesrightsholder
participation,payment,andattributionratherthantotalchaos.

LBRYisasystemofdigitaldistributionforthenormsofthenextgeneration.

Mission
Createamarketforaccessingandpublishinginformation1thatis
global2,decentralized3,robust4,optimal5andcomplete6.

Intheinformationtheorysense,i.e.anydata.LBRYfacilitatesdistributionofalldata,whetheritbeavideoora
spreadsheet.Thewordinformationisusedinthiswaythroughout.Ifthenumber0111011110...11101displaysthe
filmItsaWonderfulLifewheninputtoVLC,thisisafactinthesamewaythatafootequalstwelveinches.

Accessibleanywhereintheworldonanyinternetconnecteddevice.

Notcontrollablebyanyoneperson,partyorauthority.

Resistanttocensorshiporattemptstocontrolimpervioustoattacksordisruptions.

IntheParetosense,andwithregardstotheproductionanddistributionofinformation(i.e.digitalinformationisboth
createdanddistributedinawaythatcouldnotbeanymoreefficientfromtheperspectivesofinformationproducers
andconsumers).

Alltheworldsbooks,films,art,games,etc.shouldbeavailableviaLBRY.

Opportunity
LBRYaimstorevolutionizethewaythatallpackagedorstreameddataisconsumed(i.e.data
thatisnotdynamicallygenerated).Butthisisratherabstract,andstoriesaremoreconvincing.
Soletslookatoneofthelargestopportunities:videoinformation.

Annualinternetvideotrafficisapproximately500exabytes(500,000,000,000GB).Every
second,over10,000hoursofvideoarestreamed.Thetechnicaltermforthequantityofvideos
peoplewatcheveryyearisamillionjillion.Iprobablydontneedtoconvinceyouofthis.

HereswhatImayneedtoconvinceyou:thatmostvideodistributionisdonethrough
fundamentallyflawedsystems.

Theineluctablefailureofexistingsystemsistheircentralized,topdowndesign.Takingdirect
controlfromcreatorsandconsumershasthefollowingconsequences:

1. Increasescoststoconsumers
a. Providersmustcoversignificantinfrastructurecosts.
b. Providersmustinparallelcreatecomplexwaysforaccessingsomething
fundamentallysimple(anumber).
c. Providersbearsignificantcompliancecosts.
2. Degradesconsumerexperience
a. Providersmustnegotiatewithmanydifferentcreators,nosinglenetwork.
b. Consumersmustselectbetweenmanyincompleteproviders.
3. Degradespublisher(creator)experience
a. Providersfrequentlydemandcontrolofcontent.
b. Publishersloseprofittoproviders.

Similarissuesofeconomicsandexperienceexistforconsumersandproducersofinformationof
allkinds(e.g.news,facts),notjustvideos.

LBRYsolvestheseproblemsandthrowsinsomeothersweetinnovationsjustforfunsies.

Webelievethevalueofresolvingtheseproblemstobeworthratherabsurdsumsofmoney.
MoredetailsareavailableunderEconomics.

TheLBRYNetwork
LBRYisaprotocolprovidingafullydecentralizedmarketforpublishingoraccessinganypiece
ofinformation.Inahighlevelway,itcanbethoughtofasacombinationofdecentralizedfile
publishing(e.g.BitTorrent)andacryptocurrency(e.g.Bitcoin).

Parties
InLBRYworld,therearefourpartieswithdifferingrolesandincentives:

1. Hosts.HostsprovidebandwidthanddiskspacetotheLBRYnetwork.Theyearn
cryptocurrencyinexchange.
2. Miners.Minersmaintainthestateofcryptocurrencybalancesaswellasinformational
metadata(e.g.afullnameordescription).Theycontributehashingpowerandsome
bandwidthinexchangeforcryptocurrency.
3. Publishers.PublisherspushinformationtotheLBRYnetwork,whichisstoredbyhosts
inanencryptedform.Theyearncryptocurrencyforprovidingcontent.
4. Patrons.Patronsconsumeinformation,payingcryptocurrencytobothhostsand
publishers.

Example

1. Ernest,apublisher,wantstoreleasehiscomedyhorrorfilm,"ErnieRunsForPresident".
2. Ernestreserveslbry://ernieruns ,anamepointingtohiscontent.Hecanalso
providemetadata,suchasadescriptionorphoto.Minerskeeptrackofthisinthe
blockchain.
3. Thefilmisencryptedandslicedintomanypieces.Thesepiecesaredistributedtohosts.
4. Hillary,apatron,wantstowatchthemovie.HerLBRYclientseamlesslystreamsthefilm
bycollectingthepiecesfromthehostsandreassemblingthem.
5. HillarypaysErnestforthedecryptionkey,allowinghertowatchthefilm.

KeyInnovations
ThereareseveralkeyinnovationsthatwillallowLBRYtodisruptbothexistingcontentnetworks
(likeNetflix)andexistingdecentralizedinformationalaccesssystems(likeBitTorrent):

1. Fullymarketizedinformation.BecauseLBRYisbothcompletelydecentralizedand
fullymarketized,itwillbeimpossibleforanyonetochargeanypriceforinformationother
thanthemarketclearingprice.Itwillalsocreatestrongincentiveforcontenttoremain
availablethatmightdisappearinanetworklikeBitTorrent.

2. Monetizationofunusedbandwidthanddiskspace.Atremendousamountof
bandwidthanddiskspacegoesunusedoncomputerseverywhere.LBRYallowshoststo
profitforcontributingtheseresourcestothenetwork.

3. Biddablenames.Unlikeanyotherdomainsystem,namesinLBRYarereserved,not
owned.Anypartymaycommitorremovecoinstowardsaname.Thenameiscontrolled
bythepartycommittingthemostcoins,withawindowtopreventbouncing.Becausea
nameshouldalwaysbringthemostvaluetothelegitimatecontentcreator,theCoase
theoreminformsusthatthisdesignshouldensureoptimalandlegitimatename
distribution.Italsocreatesincentiveforcontentcreatorstojointhenetwork.

4. Protocol,notproprietary.BecauseLBRYisamethodofdoingthings,itiseasily
extendedandbuiltuponbyothers.Thisalsoreducesourliabilityandcompliancecosts
forillicitusage.

5. Metadatainblockchain.Inotherdecentralizedinformationsystems,metadatastorage
canberiskyorexpensive.InLBRY,thismetadataisrequiredtominethe
cryptocurrency.

6. Improvedprivacy.Hostsonlystoretinyportionsofencryptedfiles,meaningtheyhave
noknowledgeorwayofdiscoveringwhatinformationtheyprovide.

7. Assurancecontracts.Publisherscanpromiseadecryptionkeyforapieceofcontent
onlyonceacertainamountofcryptocurrencyhasbeenpaid.Jimmytellsmeyoure
supposedtolabelthisaKickstarterforinformationbecausethephraseassurance
contractisscary.

8. Memorablenames.LBRYallowsyoutoaccessthingsathumanfriendly,logical
resourceindicatorslikelbry://itsawonderfullife .Italsosupportsversioning.

Economics
Notes

Thenextsentencewillinstilleitherdreadordelightdependingonyourpredilections:

LBRYisnotatraditionalbusiness.

Asaprotocol,LBRYisnotaspecificservice,application,orprogram.Thereisnothing
proprietaryaboutit.OnceLBRYisreleased,ourabilitiestocontrolitwillbenodifferentthanour
users.Anyproofofconceptapplicationswecreatewillbeopensourced.

Instead,thevaluethatLBRYcreatesisinthecryptocurrencyitselfandintheservicesit
provides.Eachpercentageofthecurrencycanbethoughtofashavingavalueproportionalto
thesumofallinformationtransactedthroughthenetwork.

Giventhissituation,themostreasonablepathtoprofitistopremineaportionofthe
cryptocurrency.EarlyadoptersofLBRYandLBRYitselfdeservemorecompensationto
compensatefortheircommensuraterisk.Therefore,webelievethefollowingissensible:

20%toincentiveadoption(extraearlyrewardsforcontentcreatorsandhosts)
10%fororganizations,charities,orotherentitiesalignedwithLBRYobjectives
10%forus(foroperationalcosts/profit)
Remaindermined

ModelandProjections

IfLBRYreplacesexistingcontentdistributionsystemstoanymeasurabledegree,this
representsludicrousvalue.

Beforesharingourmodel,wemustnoteherethatwearegenerallyskepticalofmodeling,
especiallyofthistype.Weprefertheprimafacieargumentthatifanysignificantportionofthe
$2trillionmediamarkethappensthroughtheLBRYnetworkthatthecreditswillholdsignificant
value.

However,forthemodelloversoutthere,hereyougo:

https://docs.google.com/spreadsheets/d/1yxntcrQQabd8SK3qbxZIvV6EzbKsKh7qQh3W1dR1Z
3c/edit#gid=43543292

Exit

LBRYmaynotbeatraditionalbusiness,butthisdoesntmeanitsexitcantbe.WhileLBRY
generatesvalueinasomewhatobliqueways,recognizingthatvalueisstraightforward.LBRY
exitsinoneoftwoways.

Liquidation
Evenamodestcaptureofthemarketrepresentstremendousvalue.SinceLBRYsmost
significantassetwillbeitscredits,itcouldsimplyliquifythesecreditsatareturnof1010,000x
onanyinvestment.Werecommendgivinganyinvestorsclausesthatallowthemtoconvert
equityinLBRYtoaproportionalshareofcreditsattheirdiscretion.

Sale
Beyondcredits,LBRYwillhavevalueinbrand,reputation,andhumancapital.AsLBRYcould
crediblythreatenanumberofestablishedcompanies,itispossiblethatalargedataormedia
company,suchasAmazon,Netflix,Google,wouldchoosetoacquireLBRY.Inthiscase,LBRY
couldbeanticipatedtobringinthevalueofitscreditsoutlinedinthemodelaboveplusadecent
premium.

Team
CoreTeam
JeremyKauffman,ChiefExecutiveOfficer,Founder
Jeremyknowshowtobuildandscaleastartupstartingfromdayone.Heknowshowtodeliver
usableproductsandgetthoseproductsinfrontoftherightpeople.

Jeremyisresponsibleforthepacking,presentation,andstrategyofLBRY,aswellassome
designaspects.Heisalongtimesupporterofdecentralizedtechnologyandfreedomof
information.

JeremyfoundedTopScore,astartupthatprocessesmillionsofdollarsmonthlyineventand
activityregistrations.HealsoattendedRensselaerPolytechnicInstitute,wherehereceived
degreesinphysicsandcomputerscience.

MichaelZargham,ChiefTechnicalOfficer,Founder
Michaelhasspentyearsmanaging,designing,andoverseeingadatascienceteamand
frameworkusedtomakemultimilliondollarpurchasingdecisionsforalargemediacompany.
Hebringsknowledgeofthemediadistributionbusiness,softwaredevelopmentexpertise,
businessdevelopmentexperience,technicalskillandanetworkofcorporatecontacts.

Michaelsabilitytorapidlyadaptnewskillsetsmakeshimatechnicalandbusinesspocketknife
ofourstartupteam.HehasaPhDinsystemsengineeringfromtheUniversityofPennsylvania,
withafocusondistributedsystems.

JoshFiner,ChiefOperations&GrowthOfficer,Founder
Josh'scombinationofanMBA,stronganalyticalskills,programmingskills,advertisingexpertise,
andaperceptiveinsighttofinancialmarketsleadhimtofrequentlybeartheoneofthemore
contentioustitlesinthebusiness:growthhacker.

Joshhasfoundedinnovativefinancialcompanies(lateracquired),runmillionsofdollarsin
Adwordscampaigns,andbeenanearlyactorinothercryptoprojects.Joshsmotorand
fastestwayfromAtoBtypeofthinkingaresuretotoLBRYwillbeasdiverseashis
background.

MikeVine,ChiefMarketingOfficer,Founder
WithahumbleBAinPhilosophyfromTulaneUniversity,Mikehasbuiltasuccessfulfinancial
servicesmarketingcompany,CentinelConsulting.Centinelhashelpedclientsgrowfromclose
tonothingtohundredsofthousandsofvisitors.Hemanagesemailmarketinglistsandsocial
mediaaccountsofthesamesize.

MikehasbeeninvolvedwiththeBitcoincommunitysincetheearlydays.Hisfriendshave
launchedcompanieslikeLamassuBTM,Coinapult,Shapeshift.Now,hewantsaturntohelp
changetheworldbyharnessingblockchaintechnology.MikeheadsupLBRYsmarketing
effortsandservesasanambassadorforourplatformtomedia,investors,andthepublic.|

AlexGrintsvayg,ChiefInfrastructureOfficer,Founder
OneofAlex'sjobtitlesisWizard,sonamedbecausehecanseeminglyunderstandandutilize
newtechnologiesfasterthantheycanbecreated.

AlexdesignsandmanagesscalableinfrastructuresolutionsforSaaSfirms,andisleveraging
thatexperiencetoensureLBRY'sarchitectureisrocksolid.

AlexisoneofthreedualdegreegraduatefromRPIonthisteam,receivingdegreesinComputer
ScienceandPsychology.HeisalsoanalumniofStuyvesantHighSchool.

JimmyKiselak,CoreDeveloper,Founder
JimmyisthesecondmemberofteamLBRYtograduatefromRensselaerwithdegreesin
computerscienceandphysics.After,hefoundhimselfmiredingovernmentbureaucracy,
spendingtoomuchtimetogettoolittledone.

Readytoworkonaprojecthebelievedin,Jimmyleftanationalsecurityprogrammingjobto
startLBRY.JimmycreatedtheLBRYprotocolandthefirstLBRYapplication.

JimmyisaBitcoinfanaticandhasbeensinceitsearlydays.Hehaslongbeeninterestedinthe
benefitsofdecentralization.

JackRobison,CoreDeveloper,Founder
Jack'spathtodeveloperwithLBRYisfairlytypical:facesixtyyearsinprisonforinnocent
chemistryexperimentsloseinterestinchemistryprograminsaneelectricguitarsforKiss
decidetorevolutionizetheinternet.

JackwasoneofthefirstpeopletodiscoverLBRYandtooktoitsofasthemayunderstand

moreaboutitthananyone.

JackhasAsperger'sSyndromeandisactivelyinvolvedintheautismcommunity.Hewasa
regularonWrongPlanet'sAutismTalkTV,hasappearedonNationalPublicRadio,theNew
YorkTimes,andpresentsaroundthecountry.

JobEversMeltzer,ProjectEngineer
JobwasearlytodiscoverLBRYandmadehimselfindispensablealmostimmediately.Job
handlesLBRYbuilds,analytics,anassortmentofadhocprojects,aswellasenforcing
engineeringstandardsandbestpractices.

CurrentlyobtainingamastersincomputerscienceatGeorgiaInstituteofTechnology,Jobalso
attendedtheMassachusettsInstituteofTechnology,whereheobtainedadegreein
mathematics.Jobhasexperienceinquantitativefinance,analyticaldevelopment,anddata
engineering.

ReillySmith,Curator
ReillySmithservesastheinhouseCuratorandcontentliaisonforLBRY.Hehasworkedinthe
entertainmentindustrysince2010,havingproducedtwoindiefeaturefilmsandvariousshort
content.HisfilmshaveshownatSundance,SXSW,DallasIFF,andLAFilmFestandhehas
producedseriesforZeroDayFoxandDisney.

ReillyholdsaBAinFilmandMediaStudiesfromtheUniversityofOklahoma.

AlexLiebowitz,AppDeveloper
AlexisresponsiblefortheLBRYbrowsingapplication.Aneconomistturnedwebdeveloper,
AlexjoinsanassortmentofpolymathsatLBRY.

PriortojoiningLBRY,Alexhelpedbuildwebandmobileappsforlargenationalcorporations.
Alexalsohelpsrunalargepodcastingnetworkandbringsknowledgeandexperienceofthe
publishingindustry.

AdvisoryTeam
StephanKinsella,LegalAdvisor
StephanisaregisteredpatentattorneyinHoustonandaformerpartnerintheIntellectual
PropertyPracticeGroupofDuaneMorrisLLPandGeneralCounselforAppliedOptoelectronics,

Inc.HeisaMisesScholarandthefounderanddirectoroftheCenterfortheStudyofInnovative
Freedom.StephanhaspublishednumerousarticlesandbooksonIPlawandlegaltopics
includingInternationalInvestment,PoliticalRisk,andDisputeResolution:APractitionersGuide
(OxfordUniversityPress,2005)andAgainstIntellectualProperty(MisesInstitute,2008).

StephanreceivedanLL.M.ininternationalbusinesslawfromKingsCollegeLondon,aJDfrom
thePaulM.HebertLawCenteratLSU,andBSEEandMSEEdegreesfromLSU.Hiswebsites
arestephankinsella.comandkinsellalaw.com.

AlexTabarrok,EconomicAdvisor
AlexTabarrokisBartleyJ.MaddenChairinEconomicsattheMercatusCenterandaprofessor
ofeconomicsatGeorgeMasonUniversity.Hespecializesinintellectualpropertyreform,the
effectivenessofmarkets,andthejusticesystem.

Tabarrokisthecoauthor,withMercatuscolleagueTylerCowen,ofthepopulareconomicsblog
MarginalRevolutionandcofounderoftheonlineeducationalplatformMarginalRevolution
University.HeisthecoauthorofModernPrinciplesofEconomics,andauthoroftherecentbook
LaunchingtheInnovationRenaissance.HisarticleshaveappearedintheNewYorkTimes,the
WashingtonPost,theWallStreetJournal,andmanyotherprestigiouspublications.

TabarrokreceivedhisPhDineconomicsfromGeorgeMasonUniversity.

MichaelHuemer,EthicalAdvisor
MichaelHuemerisProfessorofPhilosophyandEthicsattheUniversityofColorado,wherehe
hastaughtsince1998.Hehaspublishedthreesingleauthorscholarlybooks(includingEthical
Intuitionism),oneeditedanthology,andmorethanfiftyacademicarticlesinepistemology,
ethics,politicalphilosophy,andmetaphysics.
Huemer'sarticleshaveappearedinsuchjournalsasthePhilosophicalReview,Mind,the
JournalofPhilosophy,Ethics,andothers.Hismaterialsareusedasreadingsinclassrooms
nationwide.HereceivedaB.A.fromUCBerkeleyandaPh.D.fromRutgersUniversity.

Objectives
Priority#1:Grow+PolishLBRYBeta
TheLBRYblockchainwentliveinlateJune2016.InearlyJuly,thefirst1,000userswereinvited
tousetheapplication.Withinaweek,over25,000peoplejoinedthewaitinglist.Wemust
continuetopushintesters,debugLBRY,andbuildmoreexcitementandinterest.

Wevedevelopedaseparatemediaplanaswellasatractiondashboardtocontinuetobuild
awareness,interest,andusageofLBRY.

Priority#2:ContinuetoRaiseFunds
LBRYraisedenoughseedfundstogrowitsteamandlaunchtheproject,butthesefundswill
notlastindefinitely.MorefundsshouldberaisedinQ2Q32016toensurethefinancialpicture
isstrongheadinginto2017.ItwouldalsobebeneficialforLBRYtofindaninvestorthatisa
biggernameininvestmentcircles.

LBRYhasalsopreparedapubliccampaigntosellcredits,butisstillexploringtheramifications
ofthisandiscurrentlyprioritizingtheinvestmentroute.

Priority#3:ExpandRelationships
OurteamandrelationshipsneedtogrowinordertocreateafullyfunctioningLBRYecosystem:

Collectproducercommitments.LBRYhasalreadyreceivedacommitmentfroma
majorHollywoodproductioncompanyaswellasindependentcontentandvideogame
producers.Wemustcontinuetoworkboththesupplyanddemandsideofthe
marketplace.

Addcommunitydevelopers.ThereistremendouscommunityinterestinLBRY,
especiallyamongtechnicalandearlyadoptertypes.TheLBRYecosystemcangrowa
lotfasterbyleveragingthisinterestintoproductivework.

Collectinfluencersandconnectors.LBRYbeinganamazingtechnologywillnot
intrinsicallyensuresuccess.Weneedtoidentifyandjoinforceswiththosewhocanbring
LBRYtolargeraudiences.

Conclusion

Thisdocumentattemptstodotwothings:outlinethevisionandlongtermaimsofLBRYaswell
astheshortterm,immediatenextstepsforaccomplishingthoseaims.Itismeanttoeducate
youaboutLBRYaswellasserveasaroadmapforyoutocompareourprogressagainst.

Indoingso,ourhopeisthisdocumenthasgivenyouapositiveimpressionofus,an
understandingofwhoweareandwhatwewanttodo,andfaithinourabilitytodoit.We
welcomeyourfeedback.

Questions?

ContactJeremyatjeremy@lbry.io.