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.