In the previous 3 parts of this PPP topic we analysed why Musicoin needs a long term sustainable economic model :
- Part 1 Introduction : Introduce NFT and Defi into Pay Per Play smartcontract
- Part 2 Sharism : Shared PPP ownership, where value is distributed throughout the network through the contributions of everyone involved
- Part 3 IDO - Music goes to Binance Smart Chain : A real use case to start on BSC and pump the price. PPP could be a great NFT aggregators.
Do not forget to take a look to Musicoin White Paper, to have a whole knowledge from the beginning of Musicoin. After
While waiting for the $MUSIC ERC20/BEP20 Bridge, the IDO and the Skale migration we can move forward with a general and immediate approach to the PPP economic model to other currencies, other blockchains, other platforms.
Stream Stamped Pay Per Play dynamically change. Participate to the music economy
After long debates with our community on differents Tgram channels, with devs, with other devs from Uniswap, after several weeks analysing Defi, NFT and all other music blockchain platforms, calibrating it with the reality of Musicoin, I have the pleasure to introduce you the PPP variable rate. This follow solution seems to be the easyest to be deployed starting from the actual Musicoin state of the app and state of dev resources. This new PPP funding asset economic model can be run together with the old #UBI one. Starting from the original PPP smart contract we only need to modify "how fund it" and "how split it".
How fund it?
By providing $MUSIC directly inside each song and starting receiving royalties.
The $MUSIC generated from each Play will be a fonction of the Liquidity Pool provided to each PPP smart contract. Each streams will be always fund by the Liquidity Pool created on that song. And as also David advice PPP will dynamically change stream after stream following this formula :
PPP stream value = PPP Liquidity Pool / K
K = to be set between 10 and 100. We can call it the Smoother, the Sharer, the Spreader or even the Diluator. It represent the diluation effect on the royalties
How split it ?
Each Liquidity Provider will receive a % of royalties equivalent of the % of liquidity pool provided.
Artist earning = PPP stream value * artist fees
Each fans will receive a royalties from each stream in fonction of the share of the LP
Fan earning = ( PPP stream value - Artist earning ) * fan % share pool
Take a look to this spreadsheets:
* This model doesn't yet consider the reward provided by the Musicoin Foundation to each PPP LP as a function of time, to entice $MUSIC staking
** Each Liquidity Provider could receive a NFTs indicating the $MUSIC provided, the stream stamped and other specific artist features
*** This model doesn't yet included the possibility to leave the LP