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Patreon is based on percentages. It never changes. Sorry but, that's not accurate
Yes, Patreon was charging him 200,000 a year.

That's because his page was generating 2 million a year at one point.

It's percentages, they scale the bigger the number is.
That's how just about all services work, they take a percentage, which means more profit to them based on success.

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AH I see. Bit of miss info, Looked it back up. What is was that they(patreon) kept updating their policies, and eventually targeted Red because of the game. 

saying that, the money issue(s) from patreon is known problem as well. 

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I doubt he was targeted, per say.
It seems unlikely. As I mentioned, at some point they were getting 20,000 a month in income from his page. They really wouldn't want to target someone under those circumstances. They did update their TOS and do so often, but I've been on Patreon for years and it's never been anything excessive that they require or ask of Patrons. The main reason they update their TOS is because some developers try to skirt the rules by bending them. Those rules need to be amended once people find out about it.

Naturally, it's up to the developer whether they want to adhere or decline. It seems this dev did, for whatever reason.

I don't think this game will ever be finished, but I do come and check on it from time to time. Just to see if I'm wrong. ^_^

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He wasn't targeted, as he was quite the cash cow, as you said.

What happened, on the Patreon side of things, is that Red released the Halloween build for his Patrons, which includes two female characters getting intimate, not only with the MC, but also with another.

Those two characters, Ara and Faranne, for those who are familiar with the cast, refer to each other as "siblings" because the former was quasi-adopted by the latter. Patreon temporarily disabled Red's page and asked him to change the game, since they don't allow incest. Since the characters in question were of completely different species and the game is very clear about them not actually being related (well, and because Red was stupid rich anyway), the creator said "fuck off, I'll quit Patreon then", and decided to not release any more updates until either the game or the fifth chapter of the game was finished.

He was considering switching to a newer version of the engine after releasing the first half, i.e. Prologue + chapters 1-5, and then work on turning what was supposed to be the second half (chapters 6-9 + epilogue, iirc) into a sequel.

Apparently, that is now no longer the plan...

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For projects of this scale they should've just gone to platforms like kickstarter. The problem with Patreon as a longer-term fund-as-you-develop platform is that none of the parties gets any guarantee.

Patreon is meant for regular content delivery like podcasts, video clips or illustrations. If your game is not able to deliver substantial updates at least on a quarterly basis then Patreon is a really bad idea for raising funds.

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Back then kickstarter didn't allow adult content games to be funded or placed on their platform. This is something they only recently began to do.
More importantly, 95% of kickstarters never get funded. Patreon is vastly better for funding what you enjoy doing.