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Muse/SoundDAC / Re: BitShares Music non-technical paper. Updated.
« on: September 28, 2014, 06:02:18 pm »Your PTS will give you shares in this DAC, or do you mean something else?Yes but how do the shares make money? In other words how does the DAC make a profit to pass on to the shareholders.
just read the first post in this thread.Quote2.2.2 Artistcoins
An artist can decide to create his own coin and start selling them to his fans to fund his career. The artist sets the price of his coin and sells it just as he would sell a baseball card. A limited edition digital token with his name and/or his face on it. These newly created, limited edition artistcoins are now distributed throughout the artist’s fanbase and himself. The income generated by his fans buying up the artistcoins will go straight to his wallet, directly funding his career just like kickstarter would. Only, as we will see below, this type of kickstarter is superior in many ways.
Every time a song is sold on PeerTracks.com, a certain % of that income goes into the market and buys up the lowest ask of that artistcoin, effectively cashing out the seller. That artistcoin is “burned” (taken out of circulation). This mechanism achieves the following:
pays the artist for his content
increases liquidity in that artistcoin (paying off the artistcoin seller)
increases demand in that artistcoin
reduces supply of that limited edition artistcoin
The last three points are what can cause a price increase in that artistcoin.
The more music an artist sells on PeerTracks, the more liquid his artistcoin is. Since every song sale is actually a buy order on the books.
If a user purchased a certain artist’s coin and the artist starts selling songs and albums on PeerTracks, that coin is now worth more than when it was purchased. It is in that user’s self-interest to share and promote this artist’s music in order to reap maximum benefit from the holding of that artistcoin. In other words, the fans are incentivized to generate more music sales for the artists they hold artistcoins of.
That describes how the artistcoin will make money not the DAC.
So will PTS holders be given 10% of all artistcoins? Or will the DAC charge a fee for creating an artistcoin?
No you'll not get artiscoins as a PTS holder, you'll get Notes, how many notes we don't know yet. Notes will make money to shareholders in the same way as BTSX makes money to shareholder right now. But let's wait on Cob final distribution and plan.