226
Muse/SoundDAC / Re: BTER.com takes PTS snapshot on Oct.10 for distributing MUSIC
« on: October 03, 2014, 09:25:48 pm »
This will help in predicting market price/cap.
Very cool. Thanks BTER!
Very cool. Thanks BTER!
This section allows you to view all posts made by this member. Note that you can only see posts made in areas you currently have access to.
So the DAC will allow flexibility is amount of artistcoins issued, and the % of income going to artist and artistcoin holders.
Is that necessary? Why not just have all of the income go to the artistcoin holders and have the artist decide the percentage they get by holding on to the appropriate percentage of the artistcoin? So an artist can issue an artistcoin with some supply, keep 50% for themselves, sell the other 50% on the open market. Now when the income from the music sales buys the artistcoin, the artist should get 50% of the effective dividends from the buyback. To realize these gains as BitUSD, they simply sell the appropriate amount of artistcoins on the exchange (they sell only enough to maintain 50% ownership of the new reduced supply of artistcoins). Maybe they can even get away with paying long-term capital gains taxes on some of their earnings instead of income taxes if they can hold off selling some of the artistcoins for over a year (I don't really know for sure, I am not a tax attorney).
I second that. The knowledge that the artists will actually receive their income through the same artistic coins that the investors are buying will lead to much more interest by investors/sponsors and much higher price, than if they buy some artistcoin that will be producing some unclear returns and the artists' interest how big such returns are is pretty uncertain (and even potentially opposite if % of music sales goes to artistcoins' holders and the rest to him/her).
We thought of that too. One thing we want to avoid is for artists to have to do anything manually. Artists and bands are solicited by a hundred different music websites that'll do X or Y for them. Having to learn the intricate details of each can be a big deal. We wanted a way for an artist to just put up his music, set his price, sell his coin. Go away! and collect BitUSD.
Is that necessary? Why not just have all of the income go to the artistcoin holders and have the artist decide the percentage they get by holding on to the appropriate percentage of the artistcoin? So an artist can issue an artistcoin with some supply, keep 50% for themselves, sell the other 50% on the open market. Now when the income from the music sales buys the artistcoin, the artist should get 50% of the effective dividends from the buyback. To realize these gains as BitUSD, they simply sell the appropriate amount of artistcoins on the exchange (they sell only enough to maintain 50% ownership of the new reduced supply of artistcoins). Maybe they can even get away with paying long-term capital gains taxes on some of their earnings instead of income taxes if they can hold off selling some of the artistcoins for over a year (I don't really know for sure, I am not a tax attorney).
By the way, you make a clear distinction between PeerTracks and the BitShares Music DAC, which is great. But I don't understand the mechanics of how the BitUSD to pay for the music and buy the artistcoin works. The whitepaper is not clear on this. The only reason people are paying money for the music download is because PeerTracks is providing the download in exchange for the money. Does the DAC itself provide a mechanism to set song prices and keep track of payments and license rights of those songs on the blockchain, which then PeerTracks monitors and gives the payer the download? Or does the music buyer pay the BitUSD to PeerTracks in exchange for the music download which PeerTracks then uses to buy up the appropriate artistcoin and pay the artist? If PeerTracks really is just a frontend to the DAC, shouldn't that mean that an artist should in theory be able to use the DAC (with other open source clients) to sell music to their fans directly without PeerTracks involved at all (even though this obviously will not be as convenient as using the PeerTracks interface)?Good question Arhag. PeerTracks holds no funds.. ever. The blockchain takes care of everything. CUE THE MUSIC! "Can't be stopped, can't be touched, can't be..."
Are you increasing the fixed fee of BitUSD transfers for music purchases or is there a percentage fee as well? If you are able to distinguish between a regular BitUSD transfer between addresses and a music purchase with BitUSD (which I assume you have to be able to do in order to use a percentage of the BitUSD for music purchases to buy the appropriate artistcoins), then you have a lot of flexibility in how you charge fees. Keep fixed fee transfers of Notes, BitAssets, and user-issued assets (artistcoins) low just like BitShares X, but then add a small percentage fee (maybe 2%?) in addition to the tiny fixed transaction fee on music purchase transactions.
So I guess the PTS/AGS snapshot will be INDEPENDENT of the presale? you launch the presale AFTER the snapshot?
My initial thoughts are:Price is irrelevant. VCs and angel investors are looking for start ups with potential to put in their capital.
1. I don't feel that we are so much in a crypto booming. Especially with bitcoin price dropping from the beginning of the year
2. What happens if BTC drops in price much faster than notes? You will spend very fast all the bitcoins for future development and not raise so much money. Consider also the possibility that not many people learn or invest on the IPO so with few bitcoins, few people earn more shares and dilute PTS-AGS shareholders. This will create a bad image for the PTS and raise questions for their purpose in acquiring in advance shares for future DACs. I have already seen a lot of new members asking why to invest in PTS now and not wait when the DAC is launched.Nothing is stopping the Foundation for hedging it's funds. If it want's to sell off EVERYTHING it has for fiat, it can. The pre-sale will be done in Bitcoin, but nothing is stopping it from selling some off for Euros, canadian dollars, DOGE lol
3. You do give the opportunity to new people to participate through PTS. I don't understand why you think that an IPO will be different and will bring more members in our community. The same persons that are likely to invest through IPO might as well invest by buying PTS and keep them for the next DACs.People spending their money on PTS raises exactly ZERO dollars for the Music project. So why bring it up? Your goal is to own a DAC that has wealth behind it no?
4. Definitely agree imposing a cap to the dilution from the delegates in order to avoid selling pressure.Yes and let's see what Bytemaster comes up with in his other thread.
5. Isn't the 10% of the Foundation sufficient for the development of the DAC especially if it is to be worth billions?Please re-read the original post.
Now the next step is to mentally accept the 'Music Foundation' is not getting any free share allocations. (i.e. no 10% reserved share). Getting the hard cash should be good enough. ( if you want some Notes, feel free to buy some in the IPO)You are saying that when a company goes public it should not be allowed to retain any stock?
The 3rd step is to accept bitUSD (in addition to BTC) - the positives are numerous let's name a few:If it can be implemented simply. But I remember Toast telling me we would not be ready for this yet. Will have to bring it up again.
- Hedge against possible (likely in my mind) BTC price movement;
- Support for the whole Bitshares eco-system (which your Music DAC is a part of now, and we all hope grown part of it);
While this would be great, we shouldn't forget that we are still using test wallets, not a final product.Ah yes! That was the main reason why (:
I think this would create a great barrier for new investors.
Do you have expenses that require both 10% to the foundation and then another 20%? Basically you're saying the foundation should get 30% up front?Do we have expenses!? haha hmm yes.
Also the whole presale thing seems like a completely unnecessary ritual. If you just say 30% goes to the foundation then you can just sell that. I think the presale idea is bad.I think you also missed something in the original post. Of course we can dump Notes at launch. The point of this thread is that it's not a good idea to crash the price of a baby blockchain when instead you can just spend bitcoin to fund devs and marketing and lawyers.
New investors can just buy PTS if they want to get shares prior to launching.Once again, how does buying PTS off of an exchange pay for a DAC exactly?
I don't understand why you think that an IPO raising bicoins will attract new people.I speak from personal experience. I know many people that bought into Ethereum and maidsafe that where previously NOT fans. The IPO got them interested "hmmm am I missing out if I don't read up on this project?"
New people will get attracted by buying PTS in advance as long as this is well communicated to them.Which helps no one except the PTS seller, whoever that may be.
The IPO is pointless. If they just pre-allocate 30% to themselves it's the exact same effect. Once the shares hit the exchange they can sell off some of it.
So the question is why did they originally offer 45/45/10 and now they want to do 35/35/30?
If people wanted to get in then what was AGS/PTS for? What about those people?
So now AGS/PTS has to compete with some presale operation? I can see the point that presales can generate hype but AGS/PTS already generated hype. Tell them to buy AGS/PTS.
Dilution is barely acceptable but I don't see any benefit to this idea. What exactly does it gain?
Auction a day. Pure AGS style!If we go for a pre-sale. It will be an AGS style one only shorter. 30 to 60 days yes.
Will it be day-by-day allocation? (exactly the same as AGS) Or the allocation will be calculated based on the whole period? (Like viacoin presale)
I like using dilution to fund these important expenses (development, marketing, legal, etc.), but I really dislike bytemaster's solution to this.This new version, which will be spearheaded and tested by BitShares Music, will allow delegates to make more than just the transaction fees, they will be able to do additional rounds of funding, as long as the shareholders agree and vote for it.
As long as they vote for it indirectly. I've discussed my concerns with this method here. I think dilution is a big deal that we shouldn't just allow to happen because a delegate was voted up to top 101 ranks. This should be a decision that I believe requires majority shareholder consensus. Also, I don't like that the delegates get to decide how to distribute the funds. I think it is best to keep the role of the delegates as minimal as possible: just what is necessary to keep the network running, votes updated, and generally maintaining consensus in the blockchain. We should just vote for delegates that we trust enough to keep the network operating and to not collude to break the consensus, do double-spends, etc. Even trusting them with price feeds is pushing the limit but is acceptable for now. I believe everything else, particularly deciding how to use funds for the betterment of the DAC and ecosystem, should be delegated to other entities (decided through proposals that are ratified by shareholder vote) who are specialized to handle that role.
So, I would like to see the ability for the shareholders to vote directly on proposals and require majority consensus anytime we change the rules of how quickly the money supply can be inflated (or even if we want to print a lump sum of stake to cover unexpected expenses, e.g. legal costs). Other proposals, such as how and who to distribute this printed money to, could be changed with less than majority consensus if desired in order to avoid gridlock on quickly making important decisions.
I agree 100% with this. I really don't have the feeling that this system is ready and it could put the whole Music DAC at risk.
I outlined my position in more detail https://bitsharestalk.org/index.php?topic=9452.msg122943#msg122943
A system like this needs a lot more discussion before it is ready for use in "the wild".
For those that have not visited the Music subforum, follow the yellow brick link:Can we expect a distribution to be published today?
https://bitsharestalk.org/index.php?topic=9360.0