Inmusik Whitepaper v.1.0.9 2 TABLE OF CONTENTS 1. Abstract 3 2. Introduction . 4 3. Economic incentives . 8 3.1 Curation . 8 3.2. Quick-Play Discovery 9 3.3. Recognizing contributions . 9 3.4 Verification . 11 3.5 Pay Per Play 12 3.6 Pay Per Contribution . 12 3.7 Record Labels and Music Industry Professionals . 13 4. Ways to contribute 14 4.1 Dual Token system 14 4.2 Inmusik Tokens Sound Coin 14 4.3 Inmusik Cash IC 14 4.4 Walets . 15 4.5 Economic Model . 16 4.6 Influence 16 4.7 Distributing Tokens 17 4.8 Preventing abuse of influence . 18 5. ZERO Transaction Fe 19 5.1 The IC Token . 19 5.2 The Sound Coin Token 20 5.3 Distribution and Suply . 21 5.4 Distribution of funds 22 6. Roadmap 24 7. The Inmusik Plat 25 Inmusik Whitepaper v.1.0.9 3 1. Abstract Inmusik is an ecosystem based on a blockchain database that supports the music industry, streaming, and social interaction, with cryptocurency rewards and a financial framework on which future music industry aplications can be built. The plat is a fusion of concepts from usic streaming and social media which includes comunity curation, verification and transparent payouts to both content owners and contributing listeners/fans. To enable a fair market economy for an industry built on al types of music assets requires a system capable of easily acounting every users’ contribution. Inmusik’s Token is the first cryptocurency that atempts to acurately and transparently enable an industry to thrive in this new digital age, while rewarding its users for their subjective contributions to the ecosystem and enabling a host of aplications not yet imagined. Inmusik Whitepaper v.1.0.9 4 2. Introduction On the 4th of January 2018, Mark Zuckerberg, Founder of Facebok said “With the rise of a smal number of big tech companies, and governments using technology to watch their citizens, many people now believe technology only centralizes power rather than decentralizes it. There are important counter-trends to this like encryption and cryptocurency that take power from centralized systems and put it back into people’s hands.“ The emergence of the internet and digital audio files created a massive chalenge for the music industry and these new technolgies outpaced any adaptation made to counteract. While streaming services like Spotify, Aple Music and Pandora have presented a solution, it’s far from being transparent and fair for everyone who uses these services. These centralized plats continue to create bilions of dolars for their shareholders, while artists receive meager payouts and paid members get no reward for their contribution. The internet is experiencing a revolution where centralized content services are being replaced with decentralized comunity plats, alowing tasks like content verification and curation to be entrusted to a per-to-per network who are rewarded fairly and consistently for their measureable contributions. Inmusik aims to suport an industry of music by empowering and acelerating this change within the business of music. While the overal solution is powered by a solid cryptocurency, our streaming ap is only the first step. This document explores how an industry can be built around this framework and also demonstrates how powerful it is when put into practice with our own music plat. Inmusik Whitepaper v.1.0.9 5 There are four fundamental principles which have ben used in the design of Inmusik to serve as checkpoints to which al concepts and ideas must adhere. They are 1. All people who actively contribute to the sucess of a venture should be rewarded in direct proportion to the measurable value of their contribution. 2. Al people who create artistic content should be rewarded in direct proportion to the measurable value that content provides those who consume it. 3. Al people who give their time in helping high quality content find an audience should be rewarded in direct proportion to the earnigs of the content creators. 4. The cryptocurency plat should be built on a real, viable and scalble business model. The Inmusik cryptocurency serves the music industry by 1. Being a fair and transparent system that enables the business of music to take place. 2. Being governed by the comunity so that the system is defined by those it provides value to. 3. Alows other 3rdparties to utilize the curency, plat and system to create new and more eficient solutions for problems not yet imagined. 4. Suporting the creative arts to ensure the creation of music thrives. 5. Increasing the music industry’s economy by opening up business in new and unrestricted ways. The Inmusik plat serves its fan/listener members by 1. Enabling fans to receive rewards for verifying ownership and the perers of newly added music. 2. Enabling fans to receive rewards for curating new music through their enjoyment of the plat and directly control which content deserves atention from the comunity. 3. Allowing fans to consume music for fre with consistent contributions to the comunity. 4. Receive a percentage of earnings by helping artists reach suces milestones. Inmusik Whitepaper v.1.0.9 6 While also serving artists, labels and other industry professionals 1. Enabling a streaming service which increases payouts to owners of copyrighted music content. 2. Making it possible for any artist, musician or songwriter to receive fair and transparent payouts which are in direct proportion to their impact within the comunity. 3. Helping artists find and build an active fan base. 4. Generate revenue through ticketing and the sales of merchandise. 5. Gives the industry a single curency to alow distribution of payouts which automaticaly includes all creatives and professionals in the value chain. 6. Using a stable cryptocurency locked to the U.S Dolar. The Inmusik application promises to be an advert fre streaming music plat with a vast number of artists, songs and albums, where fans can earn money and/or gain fre membership by contributing to the comunity, serving as a backbone to the Inmusik ecosystem. Artists can upload and manage their content, conect and comunicate with fans, sel an aray of merchandise and tickets, and earn at each step of the way with fairness and transparency at the core. Inmusik Whitepaper v.1.0.9 7 For artists, Inmusik is a fan creation machine. For fans, a place where they can earn rewards for discovering music. For labels, a frictionless source of generating revenue. For the music industry, a new ay to conduct business that wil drive economic growth. This white paper wil explore the economic benefits of a decentralized industry of music and how the outcome creates a scalable, just and thriving ecosystem. This document contains a number of breakthrough inovations which are world firsts made possible by bringing blockchain to a comunity plat that revolves around content. With 18,00 independent artists already signed up, partnerships with labels and 7.25 Milion invested at time of writing, Inmusik is poised to be the leading music cryptocurency Inmusik Whitepaper v.1.0.9 8 3. Economic incentives The Inmusik plat is designed to be the first plat that rewards both listeners and content creators, in equal measure, based on the value they provide to the comunity. In this way, the growth of a new social content plat can be greatly accelerated using the economic incentives enabled by cryptocurency. Furthermore, this system is built on a real, viable and scalable business model, suporting the Inmusik cryptocurency and giving Inmusik a idable market advantage. 3.1 Curation In the music industry today, curation is almost totaly centralized. Record labels and other music professionals serve as an efective filter - finding promising new talent, working with them, promoting them, and ensuring they get favorable placing on playlists on streaming applications. While this works to a degre, labels risk large investments in new talent similar to how an investor might invest in a start-up without any certainty they wil be wel received by an audience. The other curators are the listeners themselves. Through social media, streaming plats and other chanels, listeners are exposed to new music and cast their opinion with virtual thumbs up or thumbs down and/or, the number of times they listen/engage. With listeners being the end user, their opinion is, essentialy, what drives this entire industry. Yet, a listeners’ contribution to the rise of an artist is rarely, if ever, recognized and is certainly not financialy rewarded. The chalenge therefore, is twofold One. Few people have the time to listen to new music and decide if it is worthy of the attention of their pers - a completely new system, which takes seconds to make an uation of new music based on personal tastes, is required. Two. How to calculate the contribution by developing an algorithm to score individuals based on their overal meanigful contribution to the curation of al music with the comunity. Inmusik Whitepaper v.1.0.9 9 3.2 Quick-Play Discovery To adress the first chalenge, we invented Quick-Play. Here’s how it works - Each day, the user is prompted to partake in their daily discovery of music which takes less than one minute. The user can chose which category they’d like to explore, e.g. pop, rock, classical jaz, relaxing music, recomended for you and click play. They are then presented with the best 7 seconds of each song, as chosen by the artists themselves, and decide to colect or rejct with a simple swipe. To listen a litle longer up to 30 seconds the user simply keps a finger on the song image until they decide whether to colect or reject. 7 songs wil be played in a row, totaling 49 seconds of Quick-Play, before the listener can finish discovery mode or listen to another 7 new songs in Quick-Play mode. Al songs colected are aded to the user’s ‘Daily Colections’ playlist where they await to be listened to in full. Users who partake in this daily discovery are rewarded with Tokens which increase based on the number of consecutive days they contribute. The more users partake in discovery, the more Tokens they can earn. Quick-Play is a fast and easy way to discover new music, create playlists in minutes and earn money for participation in helping great new content be heard. The data colected caries value to ensure the right music is presented to the right user when they curate. 3.3 Recognizing contributions Beauty is in the eye of the beholder. An acurate and wonderful philosophy, but also a significant chalenge in how rewards can be distributed for the curation of musical content. Who’s to say if one should be rewarded or not based on their personal taste For users partaking in Quick-Play on a daily basis, they receive rewards for simply participating, as their contribution while self-serving helps new music find an audience faster and provides the system with valuable data. In keping with our first fundamental principle - All people who actively contribute to the sucess of a venture should be rewarded in direct proportion to the measurable value of their contribution - that participation should be awarded, and so it is. Inmusik Whitepaper v.1.0.9 10 Curating content shouldn’t be done with a snap decision. Therefore, a biger gesture should be required, and with greater efort, a greater reward is deserved. The act of curating content on Inmusik is managed via a voting/beting system designed to maximize the chance of the comunity working together to help great music surface while also impacting the long-term investment users make to the comunity. A listener may vote on a song using their Tokens. The vote is a speculation on whether this song wil become widely played on Inmusik over a period of time. If that speculation is corect, the listener receives a reward related to the total earnings that song makes over time and the total amount of votes within the pol over time. Therefore, early voters on sucessful songs earn more, voters jumping on later earn proportionately less. The curation of artists and bands is done in a similar way, though payouts are higher due to the longer-term investment made by the listener/fan. Al votes contribute to the overal payouts artists receive in adition to their streams, potentialy making Inmusik the highest paying music streaming plat. To incentivize listeners, a number of Tokens are gifted to them daily for them to distribute. Gifted tokens do not rol over and are burned each day if not used. This innovative system works in numerous ways to benefit the overal comunity. 1. It gives listeners/fans an economic reason to actively find and vote on the best new music, helping newer artists break through the noise. 2. It gives listeners/fans a reason to wholeheartedly get behind an artist and actively assist in their sucess, in-turn facilitating more artists to make more money due to the listener’s emotional and financial incentives. 3. As an artist’s sucess doesn’t come over night, listeners/fans become long term investors in the Inmusik comunity benefiting everyone in the music value chain. This combination creates a mutualy beneficial relationship betwen fans and artists and brings about a new era of music distribution. Inmusik Whitepaper v.1.0.9 11 3.4 Verification As Inmusik is an open, fre to use plat, there is a possibility of some people falsely creating an artist’s profile and uploading music ilegaly, causing a negative impact to the comunity. Verifying and checking content can be a significant drain of resources, a cost which eats into the overal payouts to copyright owners. Inmusik solves this problem by decentralizing this task, handing it over to users and rewarding them for their eforts. In order to gain a ‘verified’ acount, the artists or band members are asked to share an image of them holding a hand-writen note showing that day’s date. The artist/band neds 20 users to verify their profile as proof of identity. Each user who partakes in this verification process, earns Tokens as a reward. NOTE this is for artists ading their own content. Record Labels content is being handled by conecting databases and therefore, no verification is required. Rewards can also be earned when verifying a newly uploaded song is, in fact, pered by the uploader. When an artist uploads a song, they can tag each person that contributed to that song, i.e. singer, guitarist, drumer, producer, songwriter etc. alowing automatic distribution of earnings. These ‘tags’ also ned to be verified offering further reward oportunities for the comunity. This unique system can be used in other ways to ensure that al copyright holders and perers are compensated for their work fairly. This aplication of a distributed ledger is incredibly efective for tracking covers of known songs and ensuring the copyright owner earns fairly from streams, in keping with our second fundamental principle - All people who create artistic conte