Music NFTs — Replace The Label With #nftCollective
Are you a musician, producer or artist who should be earning more from your talent? Are record labels hard to come by or streaming services paying you way too little. With Livetree’s #nftCollective, we offer a new way to be in control of your music. Think of a new distribution model between you, your friends, fans and loyal supporters. When you start a #nftCollective you can register your music in a decentralized manner. Imagine owning the publishing rights and distribution of your music.
With your collective, your fans can own your music in a transparent way, you can also have exclusive live streams to preview new music and ideas to your collective members. Why not sell tickets to your gigs and events and also do merch drops on your collective?
How Does your #nftMusicCollective work?
There are a few key-points to understand
- Treasury
- Diamonds, SEDC to Collective Tokens
- Collective Buy in
- Treasury Cash Out & Burn
- Buy-out
Your Collective’s Treasury
Your #nftMusicCollective Treasury is your account earnings. It’s where you’ll find your earnings from your streams, your pay-per-view listening sessions, ticket sales to shows, and in-app gifts. Your music collective earns by creating pay-per-view videos, selling tickets to exclusive live events or even getting tipped and rewarded digital gifts. Your treasury account holds the money you earn from your posts on Livetree. Once you start your #nftMusicCollective, you get to choose which currency you want your treasury to be in. Livetree offers Ethereum (ETH), Moonriver (MOVR), Moonbeam (GLMR) and Celo. All your earnings will be in either one of these crypto currencies.
Diamonds, SEDC to Collective Tokens
Livetree gives your fans many ways to earn, reward and buy into your #nftMusicCollective. First, your fans and subscribers will need to get some diamonds. These valuable in-app gems can be used to reward you and others on Livetree. Every time someone buy-ins to your collective using diamonds, we return SEDC to them for that collective. SEDC — that’s Livetree’s native token and your key to owning the platform. Remember each collective, including your own has their own tokens. And Livetree unlike other social networks is a collective as well.
When your fans use diamonds in-app they get SEDC. They can then use SEDC to buy into your collective’s on-chain collective token. You’re inviting your fans and listeners to join something they believe in, something they want to be a part of, something that values their participation in your music career.
A thing to note. There are 1 milli tokens in each collective. That means you have 1 million tokens in your collective too. We restrict the number of tokens received from the app to your collective’s token to 490,000 because it reflects 49%. 49% is less than 51% and in order to pass any proposals in your collective, there needs to be a 51% or more majority.
Your fans SEDC goes to you, the creator, meaning you can earn from your money. Head over to your in-app “Collective Memberships” to see your balance at any time.
Collective Buy-in
We give users other ways to buy into your collective, and that means getting their hands on a share of your collective’s 1 million token. We have a secure desktop marketplace website where you can use your own cryptocurrency to buy-in. Livetree currently supports Ethereum (ETH), Moonriver (MOVR), Moonbeam (GLMR) and Celo (more on the way). Depending on which blockchain you have minted your collective, that’s the currency you would use to buy-in. Unlike in our app, the buy-in is not automatic and has to be accepted by the collective manually using the marketplace. The creator or collective members with enough tokens can accept marketplace buy-ins or even make a counteroffer. Users can then purchase that collective’s tokens with either Ethereum (ETH), Moonriver (MOVR), Moonbeam (GLMR) and Celo depending on which blockchain the collective has been minted on. Head over to the TOKENS tab to see buy-in.
Cash Out Collective Tokens (& Burn)
When your fans are a member of your #nftMusicCollective, that means they have a stake of percentage of your collectives’ 1 million tokens. Those tokens also represent a percentage stake of the collective’s treasury. It means that your fans can redeem their share of the treasury at any point. Perhaps a fan has a 10% share of a collective’s tokens, they can then cash out 10% against the treasury at any point.
In order to strengthen the potential of a collective’s treasury, remember the more rare something generally the more valuable it is, each time a user cashes out, all of their collective tokens are burnt meaning those tokens are destroyed. If you want to get some funds out of the treasury you can make a proposal to use the treasury funds and as long as 51% vote for it, the funds will automatically be transferred.
Everyone who holds the collective’s token can cash out and redeem their stake from the collective’s treasury at any point. And remember the treasury is the account that holds the earnings for your collective so we expect it to go up over time.
Buy Out & Own The Collective’s NFTs
What if your fans want to have full ownership of your collective’s NFTS or maybe you want to take over another collective and its NFTs? Why would you want to do this? You could either want to transfer your collective’s NFTs to another platform or perhaps you’d like to action new change in a collective. Whatever your reason, you will need to make a buy-out offer. That’s when you buy-out everyone who holds that collective’s token.
In order to do that you’ll first need to propose a buy-out price to the entire collective. At least 51% of the collective have to agree to and approve the buy-out price before it can be accepted. Once it’s been approved, you can then make an additional proposal to buy-out the collective. Again, at least 51% of the collective need to agree to and approve the proposal for a collective buy-out. Now with a buy-out under way, the buy-out amount is sent to the collective’s treasury and everyone in the collective would be able to cash out their percent against the treasury. All existing token holders, except the user who requested the buy-out, will now receive an amount of crypto for their share of collective tokens.
Remember that the buy-out price is set by a proposal and so is the actual buy-out. Both proposals need at least a 51% approval before it can take place.
Once the buy-out has been completed, previous token holders no longer own that collective’s token but instead would have received a proportionate amount of crypto depending on the amount of tokens they hold.
With Livetree, we give you unlimited choices to control the platform and make positive changes to your #nftMusicCollective. You can make a buy-out price proposal or buy-out complete on the Voting tab of any collective
