Vezt FAQ

Everything You’ve Always Wanted to Know About Vezt

Vision and Mission Questions

What is Vezt?
Vezt lets music fans share ownership with artists in their favorite songs.

It is a revolutionary new platform that gives artists and rights holders control over their new or existing songs and allows them to easily capitalize on their work by choosing portions of their songs to offer for sale to fans, friends, rights-buyers and brands.

The Vezt platform employs blockchain technology to track and collect royalty income transparently. Vezt offers a true marketplace for songs and gives artists the opportunity to make a living and continue doing what they love most — make music.

Enjoy a First Look at Vezt

What is Vezt’s mission?
We believe that music is one of the few mediums that can literally transform life. It can provide solace and comfort to those hurting or in need, joy and excitement to an experience or event, and even has the ability to transcend time and space with the emotional nostalgia that hearing a favorite song can trigger in one’s mind. It’s powerful and magic and we think it’s worthy of our efforts to provide its creators with the ability to be fairly and transparently compensated for their work and talent.

Our mission:

  • To provide artists with an equitable and transparent platform to easily and quickly monetize new or existing songs
  • To allow fans, friends, rights-buyers and brands to partner with artists on a song-by-song basis, sharing directly in whole or fractional IP ownership
  • To create a true marketplace for songs, where tracking and collection of royalties and licensing income is transparent and in real time
  • To deliver to artists the opportunity to make a living from the fruits of their work, without unnecessary impediments that keep them from focusing on what truly matters — their music
  • To strengthen the relationship between artists and those that appreciate their music, in a meaningful way, where a true partnership can be formed and mutual benefits derived

What are the problems Vezt aims to solve?

  1. Today’s music industry is fragmented, leaving most artists with few options to generate real income growth.
  2. Record labels and music publishers are only focused on a few blockbuster releases.
  3. Both developing artists and successful, established artists alike are constrained to heavily unbalanced deals that rely on antiquated protocols which lack transparency.
  4. Individual songwriters often have copyrights in numerous compositions, but have no way to directly monetize their rights, or to develop new income streams outside the traditional publishing model.

Vezt aims to provide a solution for all of this.

How does Vezt help solve these problems?
Vezt lets artists choose which portions of their songs to offer for sale to fans, friends, rights-buyers and brands in a monetization process called an Initial Song Offering™ (ISO). On the back-end, Vezt provides tracking and royalty collection on ownership interests through its blockchain-based smart contract technology. Earnings can be received quickly and transparently. (See this post for more details on the ISO.)

Who does Vezt primarily benefit?
Vezt primarily benefits three groups:

  • ARTISTS: Any artist can benefit from Vezt. With the ability to finance music creation and collect royalties without unnecessary intermediaries, music creation can become a profitable business again for the artists.
  • RIGHTS-BUYERS: Savvy music professionals (producers, A&R, promoters, managers, etc.), institutional rights-buyers (pension funds, mutual funds, etc.), and brands can benefit from a robust song marketplace, where tracking and collection of royalties and licensing income is transparent and in real time.
  • MUSIC FANS: United in their love for music on a meaningful level, music fans now can translate their passion into true partnership with artists on a song-by-song basis. Music fans can share ownership with the artists on great songs and make money when they become popular.

What is the Vezt’s development roadmap and timeline?
We expect to have a demonstrable prototype in September of 2017, and a fully-functional MVP by the end of Q4 2017.

  • Q3 2017 — Complete back-end and blockchain development and integration
  • Q4 2017 — Onboard and white-glove 3 artists through the platform, complete MVP
  • Q1 2018 — Beta launch, add selected artists and rights-buyers, product testing and improvements
  • Q2 2018 — Release platform to all artists and rights-buyers

Where can I get the latest updates on Vezt?

Where can I share some of those amazing animated GIFs?
We’re proud of our GIF game, so check out this fan art page on GIPHY.


Business Questions

What is the barrier to someone else attempting this kind of project?
There are two answers to this:

  1. We are getting as many patents as we can in terms of process names, rights and structure.
  2. Our connections through our team and advisory board. We have a wealth of experience operating in the music industry

What happens if an artist misrepresents themselves?
We are a platform just like Amazon or eBay. We vet to the best of our ability, but the legality of a suit is on the individual that misrepresented their rights in the marketplace. We have very strong legal verbiage that will state this along with a similar legal structure as a crowdfunding platform.

Who are your main competitors?
There really is no one else attempting this right now. This is the reason we are able to file patents for many of the terms that will soon become commonplace.

Why do you need to use a token? Can’t this be done without it?
It could be attempted without it but we realized that without blockchain, we would be obsolete within a few years. We came across blockchain when looking for a solution for rights tracking and it fits our needs perfectly.

How will artists learn about Vezt and it’s possibilities?
We are close to signing a deal with an A-level artist but like all industries, the first deal is the hardest. Getting deals in the music industry is difficult, but our team is making it happen

Do you see Vezt as a platform for established artists or for newer unknown artists?
Both. Our model has obvious benefits to the artist just starting off but you can also see that established artists have been forced to branch out of music to make money (e.g., clothing lines, commercials, etc.) due to very high agency and intermediary fees. Ask any musician what he wants to do and he will want to make music. Vezt will let them focus on that.

Who are your main target audience?
The main target is fans. All around the world people have a passionate relationship with the artists they love and Vezt will allow them to build an even closer relationship.

Are you focussed on the US first and plan to expand worldwide later?
We will build the app in the US but we have some investors who will help us break into the Asian market. We want to hit the two largest markets in the world quickly and after that it will be easier for the rest of the world to follow suit.

Did you raise money through VC? Why isn’t that enough to launch the business?
We did raise some investment from VC. Binary Capital chose to invest $250,000 in Vezt as their only pre-product investment.

The key to success for any app is the acquisition of users. Music is a global product, and launching the business in Asia and Europe will require additional capital. We intend to grow and become the standard in the space; the one to beat.

Long term, how does Vezt profit from the platform?
Vezt takes 5% fee of investor royalties

For your app, will you focus on Android or Apple?
The goal is to launch both simultaneously. For the US, Apple is obviously critical, but the rest of the world is largely running on Android

Will we be able to do everything through the website that we can do through the app?
Yes. Users will be able to log into a web portal, but the best experience is going to be on the app.

Will big labels see this as a threat? Are you anti-label?
Not at all. We are very open to working with both labels and publishers. Prior to launch, we held multiple conversations and discussions with senior music industry executives. The reaction was enthusiastic, and all of them told us they saw Vezt as a positive addition to their existing systems. In fact, several told us they saw labels utilizing Vezt as a “farm team” for new artists while others told us they realized they could re-market their masters to his artists’ own fanbase.

What would a song investor actually get when they buy rights using Vezt?They have an opportunity to buy the rights that are offered by the artist. They actually are buying a fraction of the IP itself. We will also offer “certificates of ownership” to show that you own X% of a particular song.

Can I trade or sell my rights whenever I please?
The rights you own are yours to re-monetize or collect royalties from

As a hypothetical example, let’s say you have 10-year reversions, and after five years, you decide you would like to sell the balance of that term. You will have the ability to place the rights you own on the platform for sale. This will be especially advantageous when a song is featured in a movie or TV show and goes from zero play to instantly being played everywhere. You will be able to re-sell those rights back into the fanbase.

How does someone actually purchase the rights via the app?
Once the platform launches, all you will have to do is download the Vezt app, create your user profile, and choose how you would like to fund your wallet. Then you can start buying the rights to your favorite songs!

How can I deposit funds in my Vezt wallet to start buying song rights?Vezt is an app made for the real world. You will be able to fund your wallet with fiat currencies (USD, EUR, YEN) or major cryptocurrencies (BTC and ETH). These wil be converted at market price to Vezt tokens in the Vezt app. Once converted to Vezt tokens, these tokens will then be the utility token within the app.

Of course, you can also fund your Vezt app directly with VZT token. In fact, we’ve dropped the fees if you are a VZT token holder. (Learn more)

How can I withdraw funds in my Vezt wallet?
Withdrawing funds works in the same way as depositing. You can withdraw any of your preferred fiat or crypto currencies. VZT tokens will then be converted at market price to your chosen currency (fiat or crypto).

If I invested in a song which turned out to be a copy of another song, am I also liable?
Our Terms of Service will specify a hold-harmless clause and a reimbursement clause for any discrepancies that occur down the line. Disputes are inevitable, but we do our best to keep things smooth on the platform. eBay, Amazon, and others deal with this every day, and we are building internal systems like theirs.

Does participating in an ISO give any ownership in performances or licensing on the song in case it got picked up?
You would collect on anything that your ownership stake includes. If it’s collected from PROs and publishers and you own writer’s or publisher’s shares, you would get that. If you own masters, you would collect on any royalties coming from those.

Questions from the Artists

How and when do artists get paid?
Artists place their rights on the platform and are paid as soon as the ISO is completed. We allow the artist to choose how they are paid: Fiat, BTC, ETH, or VZT.

Can anyone list their music in Vezt? Is there some criteria that an artist must meet?
We’re currently looking at having an artist’s song being on Spotify or iTunes as a prerequisite for listing on Vezt. This has two major benefits:

  1. Song investors will be able to preview the songs before they purchase.
  2. In terms of approval and quality checking, Spotify and iTunes would take a good portion of work off our plate.

We will also verify ISRC (International Standard Recording Code). In some cases, we may register ISRC on a new song.

Isn’t a Spotify/iTiunes requirement a deterrent to new/unsigned/undiscovered artists publishing their work on Vezt?
We want to be accessible to ALL artists.There are a number of services (e.g., TuneCore, DistroKid, etc.) that make it relatively easy to post your music on the music streaming services

Ultimately, we have to balance security with access. We feel a robust third-party is probably the most efficient and seamless way to do this at this point.

As an unknown/unsigned artist, why should I list my song on your platform?
For an unknown or unsigned artist, listing on Vezt is the best way to directly monetize your music. It also creates a strong bond with your fans, as they are doing more than just “liking” you — they’re actually putting up cash (or tokens!). You’ll also get visibility with music professionals that may invest in your song.

How would an established artist benefit from listing on Vezt?
Many times, established artists cannot tour or get another record deal. They are basically stuck with a flat income stream. Vezt allows them to go back into their catalog, pick a song, and put up 10% of their rights for $100K. The platform allows them to control their rights and raise money from them immediately.

Established artists can also use the platform to raise money for their favorite causes without taking it out of their own pocket. They can put up a new song (or an older song), raise $100K, and then donate that directly to the charity of their choice.

For an established artist with a back catalog, what are the benefits of Vezt over a traditional publishing deal?
The benefit is that we do not take 25% of the revenue. Additionally, very few publishers actually push the music in the way that people believe.

Vezt could also be viewed as a micro-publisher. To the established artist, the freedom and control that comes with setting your value and going direct to the fanbase can be very rewarding. Our fee is 5% from the financing side.

Is the artist selling Vezt the rights, and then in turn selling the rights to investors?
The artist is selling the rights directly to investors. Vezt is administering the royalty income because PROs and publishers are not set up to handle small fractions of shares.

Will you be adding additional features to the platform in the future, such as allowing tv shows, movies, commercials an easy way to purchase rights to use in their projects, or letting users invest in other IP outside of music?
Yes. The project was originally called Music Market, but we quickly realized the real scope of what we could do.

I have a terrible singing voice. Will you invest in my ISO?
Probably not, sorry.


Token-Generating Event (TGE) Questions

Please see our TGE Participation Guide for further details on purchasing VZT during the token sale.

When does the TGE begin and end?

  • Begins: November 3, 2017 at 04:00 UTC
  • Ends: December 1, 2017 at 04:00 UTC

What countries can participate in the TGE?
All countries can participate in the TGE except the US.

Why is the TGE only open to non-US purchasers?
Even though we do not believe the VZT token is a security, our legal team has recommended this TGE structure as an abundance of caution to comply with US securities laws.

What crypto-currencies are accepted in the sale?
ETH only.

What will the funds raised during the Token Generating Event be used for?
Funds will be used to further software development (including back-end API and blockchain development and integration, node development and integration), international expansion, marketing and business development, legal and accounting, operational expenses and customer service costs

Is there a whitelist or KYC process?
There is no KYC or whitelist.

What is the maximum contribution limit?
$500,000 USD worth of ETH per transaction.

Is there a minimum raise?
There is no minimum.

What will you do with the unsold tokens?
Unsold tokens will be burned.

How do I buy VZT in the TGE?
To buy VZT you will need to send a desired amount of ETH to the Ethereum smart contract address published on the token sale page of our website (https://vezt.co) . You will need to acquire ETH ahead of time in preparation for the VZT sale.
 
The token sale process will immediately stop at 04:00 UTC on 1st December 2017 or once all VZT have been sold out. Any ETH sent to the contract address after the sale has been stopped will be returned automatically to the buyer. Do not send ETH to our address after the sale has stopped, as you will incur gas costs during the return of ETH to you.
 
Never send ETH to any address other than what we publish on the token sale page of our website (https://vezt.co) . We will never publish an Ethereum smart contract address on social media outlets such as Telegram, Slack, Twitter, Redddit etc., or send you an email with an alternative Ethereum address.

What is the price of VZT in the TGE?
VZT will be allocated to buyers on a first-come, first-served basis.

  • 11,000,000 VZT @ $0.35
  • 6,750,000 VZT @ $0.45
  • 3,500,000 VZT @ $0.55
  • 2,250,000 VZT @ $0.65
  • 1,000,000 VZT @ $0.75
  • 500,000 VZT @ $0.85

Each buyer will automatically receive an amount of VZT corresponding to the amount of ETH transferred to our Ethereum contract address divided by the ETH sale price.

Please note that Vezt Inc. reserves the right to amend, at any time, the sales price, number of VZT tokens for sale, and the timing of the sale. Any changes will be announced on our website and official Telegram and Twitter channels.

Are any of the founder/advisor tokens locked?
Team tokens are locked (staggered) based on achievements.

When is the token distribution?
Tokens will be distributed by smart contract after the TGE ends.

What exchanges will VZT be listed on?
We have been advised by our legal team not to discuss anything about exchanges.

Why was the TGE delayed?
The team received a lot of feedback and decided to take extra time to ramp up public relations. Some results of this decision were enlisting more moderators in the telegram and bringing more advisors into the project with deep roots in the crypto community.

Was there a pre-sale? What price were those tokens?
We had a private sale via SAFT and PPM for accredited investors.
We closed the SAFT round at around $3.5 million for equity and accredited investors.The earlier investors (equity investors and accredited investors) got a blend of 10, 20, 25c+ tiers. Equity being the lowest as they are owners in the company and are a blend of venture capitalists and hedge fund investors. A lot of material information and business decisions were not available yet, which meant higher risk for early backers which was rewarded with higher discounts. These investors helped fund the Vezt team to hire more team members and developers, as wellas cover the marketing and legal costs for setting up the TGE.


Token Mechanics Questions

What it the utility of the VZT token and how is it necessary for the platform?
The Vezt platform allows the transfer of fiat, ETH, and BTC into the VZT token. Our token takes the monetary value of that purchase to the rights ledger. The ledger collects from PRO’s, Stem, and eventually, other Blockchains (in the near future). The only way to access the rights ledger is exclusively via the VZT token.

Who will audit the code?
Our CTO and two other Blockchain developers on the team.

Who has written the token issuance contracts and related software?
Our CTO and other members of the team.

What incentive will users/artists have to keep their VZT instead of converting it to another currency?
We’ve heard a lot of feedback from our community recently about this issue. After listening to every comment, we’ve decided to take action based on the community’s recommendations. When the platform launches in 2018:

  • There will be no fee on VZT tokens when used to purchase song rights.
  • There will be no fee on royalties paid and held in VZT tokens.
  • Our standard 5% transaction fee will not apply to VZT token holders.

How will Vezt track the music revenue across multiple platforms?
Royalties are collected from both Performing Rights Organizations (“PROs”) in 137 countries around the world and STEM, a service which aggregates digital performance royalties from streaming services such as Spotify, iTunes, YouTube, Pandora, etc. Vezt registers the rights with PROs and digital platforms, and pays them through to artists and rights-buyers.

Will song investors be able to see the royalties and revenue streams for a song before they invest?
Yes, we are building transparency into the platform with a dashboard for showing the fees intermediaries are charging.