MUSO coin Tokenomics

Can we really back money with music?

Whilst at first this might seem like a strange idea the fact of the matter is that money and music share the same qualities.

Time and Value!

Time is Money?

Or so the saying goes, but music is also time, right?

MONEY

Whenever we look at a performance graph of a currency supply the bottom axis represent a duration of Time.

MUSIC

Music when recorded on a computer also exhibits an axis of time, which is the length of the track.

Money is Valuable?

But Music holds real value too, even over vast periods of time.

MONEY

The value of money is represented on the vertical axis. The value of the currency depends on its trade volume and price. When people buy large numbers of a Crypto coin the price goes up as it is in demand.

MUSIC

Music also holds and creates value. When a particular track hits number one, its value goes up. The value of a music can change from worthless to a collectors item. Old time classics have held their value, like stable investments in the financial industry.

Music and money are both a store of value!

The great thing about music is that everyone has the potential to produce it!

Music is an infinite resource. Despite the fact that there are only a limited number of notes in a musical scale, the infinite variety of songs, beats and grooves is never ending. Unlike Gold, or Oil, that is a limited resource, music is not constrained by the material world. Yet it is a very real phenomena.

The infinite resource of Music takes time to craft, write, produce, record, and release. It is the time taken to perform these steps that adds value to the music. Whilst it is an infinity resource its production is still slowed by time. It can therefore be considered a smooth flowing river that at first appears like it has no end. However this is not actually true.

Let’s take a look at the bigger picture to find out why…

Music, Money, & the Global Supply

So how much money is out there?

The question is not as easy to answer as you might think. If we include the money of investments, derivatives, and cryptocurrencies, then the value exceeds $1.3 quadrillion. However, if we count only the money in the world in terms a cash, and saving accounts, it amounts to about $40 trillion, which looks like this:

$40,000,000,000,000 = all the flowing cash in the world
So the next question is, how much recorded music is there in the world?

And the answer is about 150 years. This is equal to about 4,733,640,000 seconds of music. If we were to back the entire $40 trillion in cash against music, then each second is technically worth $8,450.

$40,000,000,000,000 / 4,733,640,000 sec = $8,450

In this first MUSO coin experiment we will be minting 250 coins per second, At this rate, even if we were to mint all of the music in the history of humanity, we would still only reach $1,183,410,000,000 about 1.1 trillion dollars. Therefore we can increase the mint rate by a factor of 33 and still be within the bounds of a functional monetary system.

How does the Mint Rate compare to the Current Market?

The music industry currently produces about $21 Billion per year set to rise to about $40 Billion in the next 5 years. The majority of this income is expected to come from streaming royalties, with services such as Spotify looking to become clear market leaders.

A MUSO coin minted at 250 units per second, will procure around 10 Million MUSO coins in 12 hours, only 1/2000th of the global record industry. If we carried on minting 5 years worth of music, then we would reach a total of 40 Billion coins, which is the predicted value of the music industry in 5 years.

How does the MUSO minting rate compare to publishing incomes?

One of the most reputable companies for online revenue collection is Tunecore, who in 2021 managed to pay out an amazing $308 Million to their artists. With an extensive catalogue of around 200,000 songs, they are one of the worlds leading payment solutions for professional musicians.

If we were to mint 30 seconds of each 200,000 songs at 250 coins per second, then we would generate a total of 1,500,000,000 MUSO Coins. This is just under five years worth of Tunecore’s revenue at present levels. However we can predict that streaming revenues are expected to double over this time. Therefore it is likely that in 5 years the company may well payout closer to $600 Million, which is just 2.5 years of MUSO coin minting.

The MUSO Ecosystem

So music and money both hold the same qualities. But Music is an asset. It represents an Artist’s work. It takes time to write, record, and release a track. Work is what gives music its value. The value determined not by a limited physical asset, but an asset they can be produced by anyone. So now that we know the qualities of music that are shared by the qualities of money, we can see how the MUSO eco system works to create value.

Musos

The MUSO is a token, that is pegged to the USD. In this sense it operates exactly like a dollar. You can swap a MUSO dollar for dollar in the exchange. However, a MUSO can do things that a dollar cannot do! You can buy an artist’s Musibyte with a MUSO.

Musibytes

A Musibyte is a type of NFT token. This means each one is completely unique. They can be listed and sold at different prices on Musibyte market place. This creates a unique trading environment, separate to the exchange where MUSOs are traded for dollars.

Creating Value through Music

Over selling

If an artist manges to sell their Musibytes for more than a dollar, they are bringing value into the Marketplace. At the same time the number of MUSOs in circulation gets reduced.

Under Selling

The opposite is true for an artist that sells their Musibyte for less than a dollar. The number of MUSOs in circulation will increase, compared to the number of Musibyte available.

This ability for the Musibyte to be sold at different prices gives the Market Place a diverse range of investments compared to a coin whose value is derived purely from its value relative to another coin, such as the USD. The value of music is determined by the popularity of an artist or a particular track.

The Value of Payouts

One of the unique qualities of the Musibyte is its ability to perform FREE micropayments into a fan’s MUSO Wallet. This possibility opens up a whole new world of possibility, as payout can be gamified to increase a fan’s engagement with the promotion of a new release. By attracting revenue from existing external revenue streams, and offering the artist the possibility to pay out some of those increased returns, adds value to their Musibyte collections.

Lets look at a simple example that shows how this works.

John is a singer who has just released a new single. He decides to use the Musibyte as a tool to help power the release. He mints his track and sells his bytes.

He get his most dedicated fans to buy his Musibytes. This gives him a small pool of extra income.

He uses this to launch a promotional campaign, and makes an offer to his muibyte fans to help promote the track.

When a fan uses a musibyte link to promote his track on any social media, webpage, blog, or similar, the click throughs are register by the Musibyte to that particular fans account.

John sees the hard work of his fans, and even notices an increase in his sales. He launches a payout program that will drip feed micropayments into his Musibyte collection over the period of a week.

A fan who holds a Musibyte is now slowly being paid out into their muso wallet.

Multiple byte holders take this opportunity to sell these more valuable Musibytes on the Market place.

As these are sold so more people join in the promotional activities. The Musician notices that their revenue streams are going up again.

And so the cycle can continue.

This is just one of the many exciting ways that Musibytes can be used to engage fans in activly promoting an artist, and get paid a return as the track begins to generate an increace in revenue for the artist.

Recouping Investments

Additionally, each payout brings in more value from external sources into the MUSO/Musibyte trading environment. For example, if a Musician were to return all of the income generated from the sale of their Musibytes, they recoup the money issued to them from their most dedicated fans. This is exactly the same as an standard record deal, except now the responsibility for returning the funds to the investor (label) is now a repayment to fans!

Decentralized Record Deals

The Musibyte offers a whole new ecosystem for fans and artists to collaborate more effectively.

Fans who receive rewards for promoting an artist are more likely to develop a deeper connection to their work. At the same time, the value of an artist’s work increases with popularity and kudos.

Rather than relying on a single company to manage a roster of artists, the marketing force is driven through a circle of the artist more enthusiastic fans. People who love an artists work are far more likely to do a better job when they believe in the music they are promoting. a decentralized record company through the Musibyte even allows existing record labels to work new kinds of agreements, so everyone is a winner!

Decentralised Money Creation

The control of all monetary policy has always remained in the hands of the operator.

Of the various tokenization models produced to date, very few have had their market cap specified by an asset, especially not a musical one.

This distribution of monetary backed assets, drawn from the musical community of humanity we believe is the perfect medium to create a sustainable monetary system, unlike anything we have witnessed before. A notion of money founded upon principles, such as our ability to produce value in terms of art and culture, is a little explored realm.

Money as a commodity without any kind of asset backing it is a potentially hazardous challenge. Within the Fiat Currencies, banks have had to resort to printing vast amounts of new money just to keep the system afloat. Even within emerging cryptocurrency culture we have witnessed pump and dump scandals that have lost investors seriously out of pocket. What we need is a stable monetary policy, that can be backed by an asset.

Music is one of the best possible solutions

If every MUSO owner were to simultaneously sell up all their MUSOs then the exchange can pay back all monies, and take a 1.5% fee on transactions. There are now more MUSOs avalailable from the exchange. But the MUSO eco system has not collapsed. Why? Because the Musibytes of the Artist are still in circulation and functioning to increase an artists revenue. Value is still being created, powered by the Musician and their close followers.

Building value through creative works

To fully grasp the concept of music backed money requires that we take a deep look into how the MUSO creates VALUE! The Muso and Musibyte are in fact a deep solution the challenge of money being devalued. As currency in any denomination is trade for MUSOs, so the coin can be traded for a Musibyte that holds its own intrinsic value. When MUSOs are traded out of the ecosystem, the funds are received by the artist, which they use to sustain themselves and produce more creative work. We have ‘circulated’ a dollar through the system and in doing so have created a Musibyte transaction.

If we compare this to the current cryptocurrency model of ‘mining’, we can see that it is the Musician who is the miner. They are, in a sense, being paid for authenticating the MUSO transaction. That is how we can operate without any gas fees. The music backs and authenticates each coin.

So now the dollar has been paid to the musician, who spends it back into society the next time they use a the fund to pay for something. The dollar goes around until a music fan decides to buy some MUSO coins. The dollar circulates back through the MUSO ecosystem, and the process repeats.

As more Musibytes are sold, so value is being added to specific musibyte collections. Whether an artist sells low or high, the potential to continue trading the Musibyte on an NFT platform means that’s people can engage with a new trading Eco-sphere that is rapidly establishing itself.

NTFs Markets and the Musibyte

Already NFTs are become a very popular way to store money and provide profitable returns. They are bringing value to the digital art world, with audio and video services starting to attract attention. The Musibyte NFT brings with it a unique architecture, that provides a wide range of flexibility in terms of value generation. From gamified payouts, to direct sales, the Musibyte can attract financial energy from any existing online service. We like to think of is as a ‘value amplifier’, which can be charged in numerous ways to engage promotional tools for the mutual benefit of musicians and fans.

Will the MUSO coin experiment pave the way for a broader road to be trodden, or will it be shown that the idea was too ludicrous to work?

Within the current climate of Crypto Currencies and new emerging NFT technologies, we feel there is still room for our MUSO coin offering. At the end the success or failure of a concept relies not on a single investor, or a corporate entity, It relies on you. People are what bring a concept to life.  with this in mind, and if you feel the same we invite you to participate.