Musicoin PPP Smart contract

PPP fixed rate

By listening to musicians on the Musicoin platform, you can hear great music and feel good because you know that your streams pay musicians more than any other streaming platforms.

But

For the moment, on Musicoin, the PPP rate is fixed at $MUSIC 1. So for each stream and with this current price of $MUSIC it is not really true and so it is unfair for artists.

With smart contracts, each stream operates on a Pay-Per-Play (PPP) basis. Every time a song is streamed, one $MUSIC is automatically split and transferred to the musician or all parties of a group or all parties of the song project (see above figure). Let's start from what is working right now on Musicoin PPP economic model :

PPP rate = $MUSIC 1

PPP variable rate

This proposal is going to analyse another option I introduced during the last Musicoin townhall call : the PPP variable rate option. I've worked on it for more than one year by improving it thanks to my blockchain music activity inside the Musicoin platform as an artist, inside the Musicoin Ambassador Program as an Ambassador coordinator, inside the Musicoin Telegram community as an active member and as an economist for the Musicoin team. I'm proposing to introduce this changes by adding the PPP variable rate to the actual PPP fix rate :

PPP rate ≤ $MUSIC 1

So one stream will always generate at least $MUSIC 1.

Function f(x)

I'm going to formalise the fonction. A function relates an input to an output.

Inputs = Followers, Stake and Sharism

Output = PPP smart contract rate

The greater is the value of those inputs, the greater is the value of the output (PPP smart contract rate). The PPP rate will determinate the reward generated from each stream.

Let's take a look at each of these inputs and let's called them :

• Followers = Music Power (Mp)
• Stake = Music Delegated (Md)
• Sharism = Music Share (Ms)

Followers - Music Power

How could the number of followers influence the PPP smart contract rate?
The greater is the number of followers, the greater is the reward generated from the song released by the artist. This feature allows artists to be more engaged in the platform, to share great music content. It will also reduce the impact of gaming (autoplay).

Music Power = (followers^2) / total streams of an artist

EXAMPLE: Asterios has 242 followers and 3,300 streams (see picture)
(242 x242)/3300 = 17.75 Music Power (Mp). Within a range from 1 to 10, so:

• Mp = 10

In the future we could introduce other parameters like : artist of the week winner, videos released by artists in the song page, number of different IP addresses listening to his songs (organic IP streams), number of messages from different fans accounts, cross-chain posting released on the artist's page ....

Stake - Music Delegated

How could stake influence PPP smart contract rate?
The more the stake is delegated to an artist through her/his songs, the greater is the reward generated by songs released by the artist. This feature allows investors to be engaged directly with music, songs and artists. Investors will choose which songs delegate their $MUSIC, depending on the quality of the song and its profitability. Delegation is working very well on other blockchain platform like Steemit and Hive.

By pressing "delegate" button, users will be able to delegate an amount of $MUSIC to this song, increasing PPP rate and sharing with the artist part of earning. How?

Song Delegate Stake (Sd)

Each song has its own Song Delegate Stake, determinated by all the $MUSIC delegated to this song by holders.
Song Delegate Stake= total stake delegate to the song
EXAMPLE: Let's assuming that Asterios receives 100.000 $MUSIC of Song Delegate Stake from his fans on this song (above)

• Sd = 100.000 $MUSIC

Song Weighted Stake (Sw)

It is the ratio between the stake delegate to this song and the average stake delegated to each verified artist on Musicoin. Within a max value of 1. Once Sw reach 1, delegation is no more allow on that song.
Song Weighted Stake = (stake delegated to this song / average stake delegated to each verified artist on Musicoin)
EXAMPLE: Let's assuming that Asterios receives 100.000 $MUSIC of Song Delegate Stake from his fans on this song (above), the average Stake per artist is 320.000 $MUSIC, so the Song Weighted Stake is 0,32 for this song.

• Sw = 0.32

Music Delegate (Md)

Let's formalise it :

n = 1 (it's the minimum number of songs to activate the PPP smart contract)
m = number of songs released by the artist
f(k) = Song Weighted Stake
Music Delegate = (Sommation of all Song Weighted Stake )
Within a range from 1 to 10
EXAMPLE: For easy comprehension let's assuming that Asterios receives 100.000 $MUSIC of Song Delegate Stake from his fans on each of his 16 released songs, the average Stake per artist is 320.000 $MUSIC, so the Song Weighted Stake is 0,32 for each song.
(100.000)/ = 5 Music Power (Mp). Within a range from 1 to 10. So

• Md = 5

Sharism - Music Share

How could sharism influence the PPP smart contract rate?
The more you share the more you receive. Take a look at Musicoin Ambassador Process to see what sharism is and how to determinate this value, a number between 1 and 10.

Music Share = ($music used for curate artists, $music received from Musicoin Foundation, months of activity, specific tasks., from 1 to 10)

Asterios is an ambassador since the beginning so his level is at least 4.

• Ms = 4

PPP smart contrat rate

How all these parameters influence PPP rate?
I propose here an arithmetic function better then an exponential one in order to better smooth rewards with many artists organically.
The average of : (Mp, Md and Ms ) = PPP rate

PPP rate = (Mp + Md + Ms)/3

EXAMPLE: (10 + 5 + 4) / 3 = 6.8 Asterios PPP rate

• PPP r = 6.8

Block Music Weighted

How to weight block reward from different artists with different PPP ?
Musicoin blockchain records all PPP stream timestamps from each artist, so inside each block is recorder all the new PPP stream timestamps.

Block Music Weighted = ((artist new streams x artist PPP rate) / total new streams inside the block)

EXAMPLE: The more is the number of Asterios timestamp streams inside a block, the more is his Block Music weight.
Block music weighted = ((number of Asterios timestamps streams inside the block x Asterios PPP rate) / total number of timestamp streams inside the block)
Let's say : on block 65,000 Asterios has 30 fans listening his songs, so he receives 30 new PPP timestamps streams and on block 65,000 the total number of PPP timestamp streams for all Musicoin platform is 1000.

• BMW = ((30*6.8)/1000)/10 = 0.0204 ( = 2.04 % of the block)

Asterios Block Music Weighted 2.04 % for the block 65,000

Details : the total BMW of artists will never be 100%, because PPP rate wont be 10 for all artists timestamps inside a block, so we can allocate the remain BMW to devs (40%), ambassadors (40%) and all other Musicoin stakeholders (20%)

Shared rewards

Artist Reward

How BMW influences rewards?

• Block Reward

BMW can be used to determinate how to share the block reward. Before the last hard fork the block reward was 114 $music per block. One block every 1 minute
EXAMPLE: Asterios, BMW x block reward = 0,0204 x 114 = 2,32 $music per block
So around 2,32 $music per minute so around 3349 per day

• Swap to Musicoin 2.0

BMW can allocate a swap ratio to determinate a better way to swap to another coin. To be a more music center swap and keeping up our Musicoin brand too.
Holders can decide by which song and by which artist they want to swap, by delegating their Music.

• Cross-chain reward

Musicoin is an Ethereum environnement and PPP smart contract can be executable on other Ethereum based blockchain, so we can even be able to cross-chain, starting with our music block.

Delegation smart contract - second part of this proposal (to be continued)

If this proposal will find a little bit of interest from Musicoin Foundation, Musicoin Community or even other blockchain platform, especially Hive or Peakd devs, I'll be glad to go forward explaining the second part of this proposal. Delegation smart contract. How delegation smart contract split reward between artists and holders.

Conclusion

In order to make this proposal real, we need to create another sort of smart contract, between artist and holders, something that's work very well on Hive :

• Artists decide to delegate a part of their BMW with a holders
• Holders decide to share part of theirs stake with artists

I'll describe it in the second part if there will be some sort of interest to put value in music and for our 6000 musicians on Musicoin.
Sorry for my bad english, please ask everything you need to know
@recording-box @luciannagy