NOTES tokens will now be unlocked December 1st, 2018
As many of you know, we had initially prepared to unlock our NOTES tokens on September 1st 2018, but, due to various factors detailed below, we have taken the decision to delay unlocking the token for an additional three months.
Your NOTES tokens will be unlocked on December 1st, 2018. Until then, you are free to withdraw your NOTES from your Choon account to an Ethereum wallet, but you may not transfer them further until then.
Since the Choon platform launched on May 1st, together we have achieved many milestones. We’ve already become the largest music platform on the blockchain by a long way despite only launching a few months ago. Recently, we topped 20,000 tracks with over 15,000 registered users. We’re seeing per-day uploads of 200–400 tracks, with all key metrics (streams, users, track uploads) on a steady incline.
We have also consistency launched new features, almost always in line with our projected roadmap. Since Monetized Playlists were launched, over 2,500 have been created, enabling a considerable economy to flourish between artists and playlist curators. Our more recent launch of tipping & comments has also greatly increased in-ecosystem NOTES spending, with over 100 tips being given out every day.
However, whilst we feel good about platform and community building achievements, there is no escaping the fact that we’re operating within some extreme adverse conditions in the broader cryptocurrency market, with Ethereum’s native token down 55% in value since our May 1st launch and far more year-to-date. Given Ethereum is the platform Choon is based on, launching the NOTES token to a depressed marketplace feels like the wrong move.
We are also currently closing out our next round of private investment for a joint equity and tokens offering, which, when completed, should secure the next 2–3 years of Choon operations: more than enough to weather any short-to-medium term storms in the volatile cryptocurrency economy. This investment round requires a non-trading, locked token.
Furthermore, we have several key platform features that we would like to launch to take Choon out of beta, and ‘complete the circle’ of the burgeoning NOTES economy, particularly allowing NOTES to be spent to promote tracks within Choon, and some early forms of staking. One of Choon’s biggest benefits is the potential for substantial NOTES economic activity to happen within the Choon ecosystem. Unlocking before we’ve had a chance to build a complete cycle of this ecosystem could potentially lead to a secondary market where supply outstrips demand — whereas keeping the two as closely matched as possible is to the long-term benefit of all NOTES holders (for more information on the NOTES economy over time, please read ‘Projecting the NOTES Token Velocity’).
Due to a combination of these three factors, we’ve taken the decision to unlock the tokens on December 1st, rather than September 1st: a decision which we believe will create long-term value for the NOTES token economy and those that hold it. Whilst this may be a frustrating decision for some of you, we hope you realize it’s one taken for the right reasons, and the long-term good of Choon and the NOTES economy.
This is a mission we’re on together. It won’t be completed overnight, or even in a year, but we’ve made an incredible start, and despite road-bumps like this along the way, step-by-step, we’ll get there.
As always, we’re here to listen to your feedback.
Your Choon Team.
PS: If you didn’t catch it, we’d like to recommend an excellent Citigroup report on the music industry which concluded that only 12% of all the revenue created in the current music industry makes its way back to artists which cites Choon heavily. The full report can be found here, with CNBC’s coverage here.