4.1 Phase One

Fan Points and Oxygen Credits

Fan points are a metric that measures engagement. Users receive them as they interact with posts and content in an athlete’s community. All users have a total amount of fan points earned associated with their account that’s an aggregate of their fan points across all the athlete communities they’re a part of. When you leave an athlete community, you lose the fan points you accumulated within that community.

Users acquire fan points by:

• Participating in polls

• Liking Huddle Posts

• Commenting on Huddle posts

• Marketplace purchases

These are the base fan points earned for various forms of engagement in an athlete community. We then use a proprietary algorithm on top of the base fan points. In summary, the algorithm increases the fan point payout to users who engage more relative to their peers and decreases the fan point payout to users who have been in the community longer relative to their peers. This ensures that longtime members of an athlete community have to engage relatively more to earn fan points, making fan point collection more fair for new members.

Fan points are tracked in a leaderboard that shows which users have the most fan points in a specific athlete community. Note, the fan points shown on the leaderboard in an athlete community represent the fan points earned from within that community, not a user’s total aggregate of fan points.

Fan Points to Oxygen Credits

All athletes have a reward pool that fans can earn from. When an athlete wins a game, some of the reward pool is distributed back to all token-holding fans proportionate to how many fan points they have. This means that fans at the top of the leaderboard who have more fan points will earn more rewards than other fans in the community when the athlete wins.

These rewards are distributed as Oxygen Credits. They are denominated in U.S. dollars and are only redeemable on the VO2 platform. Oxygen Credits can be redeemed for exclusive merchandise, experiences, and other offerings in athlete marketplaces (but only for athlete communities that a user is a token-holder for). No fan points are lost when a user redeems Oxygen Credits.

In a nutshell, fans can earn fan points by engaging with an athlete in their community. As the athlete wins games, fans are rewarded with Oxygen Credits for being committed token-holders. Fans who engage more and have more fan points receive more Oxygen Credits. Finally, fans can redeem these Oxygen Credits for real merchandise and experiences from their favorite athletes.