Music Protocol represents the future of
music industry infrastructure, secured by
$RECORD. As a tailored blockchain
solution, it redefines how music IP is
managed across the industry value
chain. Music Protocol incentivises artists
and developers by facilitating direct
interactions between $RECORD holders
and the ecosystem through governance
mechanisms; the network's staking
mechanisms then reinforce these.
Music Protocol represents the future of music industry infrastructure,
secured by $RECORD. As a tailored blockchain solution, it redefines
how music IP is managed across the industry value chain. Music
Protocol incentivises artists and developers by facilitating direct
interactions between $RECORD holders and the ecosystem through
governance mechanisms; the network's staking mechanisms then
reinforce these.
Music Protocol is a specialised proof-of
-stake model that economically motivates
node managers and stakeholders to
preserve the integrity of the network.
Stakeholders actively participate in the
ecosystem by supporting node managers
with $RECORD, directly influencing their
financial outcomes through operational
efficiency. This model ensures a stable
and secure platform, rewarding those
contributing to its upkeep and success.
Music Protocol is a specialised proof-of-stake
model that economically motivates node
managers and stakeholders to preserve the
integrity of the network. Stakeholders actively
participate in the ecosystem by supporting
node managers with $RECORD, directly
influencing their financial outcomes through
operational efficiency. This model ensures a
stable and secure platform, rewarding those
contributing to its upkeep and success.
Transaction Fees Structure
Unlike traditional systems, Music Protocol's transaction fees are determined not by the transaction's nature but by the data size and the computational resources required. This approach ensures fairness and scalability, accommodating the diverse needs of the music industry within the blockchain environment.
Intellectual Property Object (IPO) and Attribute Standard Templates (SATs)
At the core of Music Protocol is the Intellectual Property Object (IPO) concept, comprising an IP Core and attributes critical for crafting comprehensive IP and licensing frameworks. The ecosystem encourages the creation of Standard Attribute Templates (SATs), facilitating the development of IP objects. Utilising specific SATs in transactions incurs a fee, thus rewarding the creators of these standards and cultivating a collaborative and thriving environment for IP development.
The unique $RECORD token system is
designed to unify the ecosystem and
extend beyond traditional reward
mechanisms. By staking tokens,
stakeholders earn rewards and play a key
role in supporting artists and expanding
the ecosystem.
The unique $RECORD token system is
designed to unify the ecosystem and
extend beyond traditional reward
mechanisms. By staking tokens,
stakeholders earn rewards and play a key
role in supporting artists and expanding
the ecosystem.
$RECORD Token utility
The $RECORD token model has two features: locking for engagement and governance. These features ensure widespread token distribution and foster active participation, fulfilling the Association's role as a trustworthy orchestrator in the complex music ecosystem.
Token staking: $RECORD token locking by stakeholders signifies dedication to the ecosystem. This locking allows stakeholders to seamlessly distribute tokens to artists and musicians, facilitating their smooth onboarding. Additionally, token locking empowers artists with governance abilities and ensures their participation in the W3M ecosystem.
Governance: $RECORD's token-locking mechanism provides stakeholders with voting power in return for locking tokens, allowing participation in governance decisions. It lays the groundwork for complete decentralization and serves as a foundation for Blockchain Governance.
$RECORD Token FINMA classification
Enquiry: Web3 Music Association requested the Swiss Financial Market Supervisory Authority (FINMA) on 20 February 2023, 3 July 2023 and 29 September 2023 to assess the Web3 Music Protocol (Protocol) and the related $RECORD token under Swiss financial market laws.
Classification: Based on the governance and staking token features FINMA qualified the $RECORD Token as a utility token and not as a security or payment token. As a consequence, the issuance of $RECORD Token by the Association is not subject to the Anti- Money Laundering Act and does not require a prospectus under the Financial Services Act.
Further considerations: FINMA further confirmed that the issuance of $RECORD Token is not subject to the Banking Act since the $RECORD Token does not confer on the acquirer a repayment claim against the Association as the issuer of the $RECORD Tokens. Since the funds received from the token issuance are not to be managed by third parties, the applicability of the Collective Investment Schemes Act is also excluded. FINMA confirmed that no other financial market laws in Switzerland, including the Financial Market Infrastructure Act are applicable to the $RECORD Token.
$RECORD Token upgrade and compliance commitment
Transition to Gas Token: As we progress in our blockchain development journey, the existing $RECORD token will undergo an essential transformation to become the token of a Sovereign Layer 1 blockchain network. This progression signifies not just a technical upgrade, but the integration of a robust incentive system tailored for blockchain validators and collators.
Added features: The $RECORD token will be the primary gas token of the Music Protocol Blockchain. It will drive all actions, from simple transactions to complex smart contract executions. Its role will be pivotal in covering operational costs, validating actions, and ensuring the network's smooth operation. Beyond its utility, the token will play an integral role in the network's incentive framework, offering rewards to validators and collators who fortify and optimise the network.
Continue regulatory approval: In tandem with this evolution, Web3 Music Association will be engaging in a comprehensive regulatory approval process. The objective is to ensure that the renewed $RECORD token retains its status as a utility token. This will encompass rigorous legal and compliance evaluations, ensuring the alignment with existing regulatory benchmarks, offering protection and clarity to all our stakeholders.