+ how is that legally for an artist to issue shares in his success? As far as I understood, the artistcoinholders will get a share in the artist profits and not just some product like with kickstarter....

Yes that part is still the secret sauce.

The artist is not really sharing his profits. No dividends are actually paid out. It's the value of the artistcoin that can go up with sales of songs / albums.  There is a mechanism in place that I'll explain on a later date.

Artistcoins will be like baseball cards.
Supply and demand dictate how much they are worth.
If everyone wants them, they are worth more.
if 99% of them get burned in a warehouse fire, they will also be a rare collectible with a higher price.

Don't worry I'll get to the details soon enough

Is the 45% presale going to be buy x amount of shares for y price?  Or is it going to be like If say 1000 people participate in the presale then 45% of the shares will be split between them weighted by how much they contribute?

I will be a fixed price in BTC for a fixed amount of Notes. Very similar to what Ethereum did. I believe they started with 2000 ether for 1btc, then scaled it down each few weeks. We are doing the same.
Only the final amount of Notes will not be decided yet. Meaning Notes cannot sell out. So if only 1000 Notes sell in the pre-sale. then that means the total amount of notes on the blockchain will be 2222.22 Notes.
If 1 million Notes sell, that means the total amount of Notes at Genesis block will be 2 222 222 Notes.

For those that have seen the FAQ page, where it says there will be 2billion notes at genesis block, that is out of date, it was based on BitSharesX before the details of the Pre-Sale where written out.

Bitshares Music shares = Notes.

Bitcoin = DAC
bitcoins = units / underlying asset / shares of this DAC


BitSharesX = DAC
BTSX = units / underlying asset / shares of this DAC


BitShares Music = DAC
NOTE = units / underlying asset / Shares of this DAC


As for why you'd want to own Notes

-Tx fees This has 2 parts. First tx fees of everything done on the blockchain. Second, Higher transaction fee when someone purchases music. You the Note holder is getting a cut off of each song/album sale.
-Anyone that wants to buy music needs to have Notes (in the form of BitUSD but Notes are what the collateral is on the back end)

Note holders do not get any artistcoin just for holding notes. The artist has 100% control over what he chooses to do with his own coins. He can sell them to fund his career, he can give them away to his fans, he can put them on McDonald's XL cups where you can scratch and win 5 Rihannacoins, whatever.
The power of the artistcoins is 100% in the hands of the artist.

Keep in mind that if that Rihanna McDonald's campaign drives people to use the BitShares Music blockchain, that's more tx fees for Note holders. If people buy some of rihanna's music on the site, that means high tx fees for Note holders once again.

Quote from: cob on September 08, 2014, 04:14:47 am

Quote from: jaran on September 07, 2014, 11:51:33 pm

So my question should be i guess
 
If a song is sold for $.99 with a $.01 transaction fee what percent after that goes to the artist and what goes to the DAC?  Then does the DAC pay PeerTracks LLC for services such as running the website from its profit from sales? Or is it the other way around where PeerTracks LLC is getting the profit from the sale at the the website and all that is going to the DAC is a $.01 burn in transaction fees?

keep in mind these are fictitious %s and #s for the sake of simplicity

If a song sells for 1 BitUSD (FROM the PeerTracks website), a couple of things happen.

If the artist selling the song does NOT have an artistcoin out there, this is what happens.
0.95 BitUSD goes to the artist's wallet.
0.04 BitUSD goes to PeerTracks for bandwidth cost and the likes (costs will need to be calculated closer to launch once less variables are present)
0.whatever the transaction fee is on the blockchain is going to be the well... transaction fee. Which is what gets burned and "returned" to the shareholders, just like in BitSharesX

Now if the person selling the song DOES have an artistcoin out there (meaning he created his own token and sold it to his fans)
Things are different. The artist will not be getting 0.95 BitUSD, he will be getting 0.95 MINUS what going towards his coinholders. I will go into this later.

One of the features we are exploring as far as transaction fee is setting a higher transaction fee for any transfer except artistcoins.
This means the DAC shareholders would profit more from BitUSD transfers (music sales) but the fees would stay very low when Jimmy and timmy are exchanging Snoopcoin for One Direction coin in the schoolyard on their smartphones.

We want to create 10000 dogecoin like economies each revolving around band/singer it's fandom and it's fan club. Keeping low token transfer fees would help that, where we really want to charge off of music sales to pay for service costs + network costs, etc.

So do shareholders of the BitShares Music DAC only earn on burned tx fees or do the BitSharesMusicShares also get value from something else (e.g. because you can only buy Artistcoins with BitSharesMusicShares  or BitSharesMusicShares-holders get a percantage (the 0.04 cents?) from the ArtistShares)?

Note holders would earn from burned tx fees, correct.
What we are planning on doing is making the tx fees more expensive for bitUSD since that's the type of transaction that's used in the sale of music.

So people trading around artistcoins can do so very cheaply. people trading around notes as well. The only time a large transaction fee appears is when someone buys music since it's not done in notes, or artistcoins, it's done in BitUSD.

Clear?

So Note holders would make money off of every tx fee, some tx fees are larger than others.

This is all for Note holders.

Now if you are holding say 300 guitarguy coins, and his music starts selling on the peertracks website, then you will see the value of those coins go up.
These are 2 independent things.

I could have 100 Notes and 400 artistcoins. I could have 0 notes and 10000 artistcoins, I could have 25 notes and 0 artistcoins. It all depends if you wanna play the music market or just take fees from being part owner of the DAC or if you want to do both!

If you do both, say you have 1% off all Notes in existence, then you are making 1% off all (non-delegate) tx fees. And if you picked the right artistcoins, you can earn capital gains from that too.

According to http://peertracks.com/faq.html artistcoins can be bought using BitUSD.

BitUSD is on a different blockchain than Bitshares Music, so can someone explain the link between them? Do I open my BTSX wallet and send BitUSD to peertracks, and then it credits me with snoop dog coins?

Also, is peertracks.com basically an easy to use frontend to Bitshares Music, so that users dont need to download the wallet or know anything about crypto?

PeerTracks will not be holding any customer funds. This trustless world shall remain trustless ^^

PeerTracks is running on top of the BitShares Music Blockchain, so you are correct, it runs off a different blockchain entirely from BTSX. It won't be possible (at least not yet) to send BTSX Bitassets to another chain (BitShares Music).
People funding their accounts would do so in BitUSD collateralized by Notes (the Units of the Music DAC) So they really are shopping for music using Notes.. 1USD worth of Notes all packaged into what we know as a BitUSD.


And Yes. That's exactly what PeerTracks aims to be at first. and easy to use front end for the non-crypto crowd.

People's balances will appear in USD (BitUSD!) that should be (crossed fingers) volatility free. They would just shop around for music like they would any other music store, only in this instance they can buy artistcoins and make a profit if they purchased a coin from an artist that sells a lot of content.

This is the Minimum Viable Product.

Then Peertracks is going to tackle various other features, like streaming, for profit p2p quality playlist creation, a music centric social media aspect, etc.
All bringing traffic and volume to the network that is the Bitshares Music blockchain.

So my question should be i guess
 
If a song is sold for $.99 with a $.01 transaction fee what percent after that goes to the artist and what goes to the DAC?  Then does the DAC pay PeerTracks LLC for services such as running the website from its profit from sales? Or is it the other way around where PeerTracks LLC is getting the profit from the sale at the the website and all that is going to the DAC is a $.01 burn in transaction fees?

keep in mind these are fictitious %s and #s for the sake of simplicity

If a song sells for 1 BitUSD (FROM the PeerTracks website), a couple of things happen.

If the artist selling the song does NOT have an artistcoin out there, this is what happens.
0.95 BitUSD goes to the artist's wallet.
0.04 BitUSD goes to PeerTracks for bandwidth cost and the likes (costs will need to be calculated closer to launch once less variables are present)
0.whatever the transaction fee is on the blockchain is going to be the well... transaction fee. Which is what gets burned and "returned" to the shareholders, just like in BitSharesX

Now if the person selling the song DOES have an artistcoin out there (meaning he created his own token and sold it to his fans)
Things are different. The artist will not be getting 0.95 BitUSD, he will be getting 0.95 MINUS what going towards his coinholders. I will go into this later.

One of the features we are exploring as far as transaction fee is setting a higher transaction fee for any transfer except artistcoins.
This means the DAC shareholders would profit more from BitUSD transfers (music sales) but the fees would stay very low when Jimmy and timmy are exchanging Snoopcoin for One Direction coin in the schoolyard on their smartphones.

We want to create 10000 dogecoin like economies each revolving around band/singer it's fandom and it's fan club. Keeping low token transfer fees would help that, where we really want to charge off of music sales to pay for service costs + network costs, etc.

"Notes are not equity in a corporation, they are not stock, they will not entitle anyone to dividends in the PeerTracks company, in fact they have no direct relation to the PeerTracks corporation. These are two separate, independent entities. PeerTracks uses the BitShares Music blockchain and adds value to the network just as Bitpay uses the Bitcoin blockchain and adds value to that. One does not own the other....When you send funds to our Bitcoin address, you are merely purchasing tokens that will enable you to use the BitShares Music blockchain when it launches."

I dont understand this.  I thought the whole point of DAC's is there is no true corporation behind the scenes and the shareholders get the profits from the DAC....

While i love the idea of the music DAC i would prefer to own a peice of the DAC not  another altcoin aka token.

This DAC seems to not be one so what am I missing?

The DAC is Bitshares Music.
It's unit is the Note.

10% of all Notes are going to PTS people and another 10% is going the AGS people.

So far so good?

Now BitShares is an independent entity that matches bids, asks, tracks who has what, etc etc. I'm sure you know this already.

PTS and AGS people are getting Notes, meaning they are getting units of this Decentralized Autonomous Company.


Peertracks is a corporation. This corporation is building a website that will make it possible for artists to create their own profile, upload their music, share stuff to facebook and twitter, create their own coin if they wish, sell it etc. All in a user friendly way. User Experience comes first. We are going for the masses. The user will not even know he is using a DAC on the backend.

If peertracks goes belly up, Bitshares music is still there, alive and kicking.

If Bitpay goes belly up, Bitcoin is still alive and kicking. Delegates/miners are not affected by a company using the blockchain closing it's doors.

Does this make sense?

PeerTracks is what is launching the BitShares Music Blockchain, and we are building a website/business that will bring this new technology to tweens, teens, and adults.