This is what I meant, according to Toast, it's not sure if Music has it's own blockchainIf
So, if it where just to use the BTS blockchain, and it couldn't back any asset, there's no real value to NOTE right?
the features meant for the Music blockchain were to instead exist on the BTS blockchain (or alternatively if Music had its own blockchain but the Notes existed on the BTS blockchain and the Music blockchain, which would be a child DAC, used BitUSD rather than NoteUSD, like I would prefer they do
), that still doesn't mean Notes would have no value.
Part of the value of Notes comes from the fact that they are used as the collateral in shorts to back NoteUSD. People holding NoteUSD on the Music blockchain would be helping support the value of Notes. But it is questionable how much NoteUSD people will be willing to keep on that blockchain. I would imagine it would only be a small amount to just purchase the music they want (and for artists to receive their payments in NoteUSD), and then everyone would regularly move it in/out into BitUSD where the real liquidity is. If that assumption is true, then most of the value of Notes should instead be coming from the buyback mechanism where the blockchain takes a percentage cut of each music sale in NoteUSD and that goes toward buy pressure for Notes in the Note/NoteUSD market.
I see no reason why that shouldn't still be possible to do even if Music features were implemented on the BitShares blockchain. In that case, a percentage cut of BitUSD used for music sales would go towards buy pressure for Notes in the Note/BitUSD market. Alternatively, I think it would be interesting if we had dividend features for UIAs so that the BitUSD fees could be collected in a pool and then regularly released as a dividend to all Note UIA holders. Holding Notes would still be like holding stocks in a company, except the company is a DAC.
This all said, I think what is most likely going to happen is that when the Music blockchain is finally ready they will just take a snapshot of the Note UIA and release as a traditional blockchain DAC.