The "Entropy" Token
Entropy token serves as a vital component of the Alpha Music ecosystem, offering a wide range of utilities for artists, fans, and consumers.
Initial Supply
The Entropy token will start with an initial supply of 2 million tokens. The distribution of these tokens is planned to occur in four distinct phases. Each phase focuses on a different aspect of the platform's growth and development, and the distribution of tokens reflects that focus.
Phase 1: Community Kickstart (Up to 3 years, 1 Million Tokens)
Year 1-3: 333,333 tokens per year
Ambassador Program: 50,000 tokens (15%)
Staff Members: 50,000 tokens (15%)
Featured Artists: 116,666 tokens (35%)
Treasury: 116,666 tokens (35%)
This phase is crucial for establishing the Alpha Music community and building a solid user base. This is when the platform is fresh and new, and the excitement and novelty can attract early adopters. Incentivizing ambassadors and staff members helps to spread the word about the platform and its benefits, while rewarding Featured Artists helps to attract quality content creators to the platform early on.
Phase 2: Content Curation (Up to 5 years, 500k Tokens)
Year 4-8: 100,000 tokens per year
Ambassador Program: 5,000 tokens (5%)
Staff Members: 15,000 tokens (15%)
Featured Artists: 60,000 tokens (60%)
Treasury: 20,000 tokens (20%)
At this stage, the community has been established and the focus shifts more towards content. The goal is to keep the platform engaging and attractive to both artists and fans, and high-quality content is key to achieving this. The distribution percentages reflect this by allocating a higher percentage to Featured Artists.
Phase 3: Infrastructure Growth (Up to 10 years, 250k Tokens)
Year 9-18: 25,000 tokens per year
Ambassador Program: 250 tokens (1%)
Staff Members: 1,000 tokens (4%)
Featured Artists: 6,250 tokens (25%)
Treasury: 18,750 tokens (75%)
Now the platform is maturing, and the focus is on improving the platform itself. This could involve technological upgrades, UI/UX improvements, or other enhancements to the infrastructure. The increased allocation to the Treasury during this phase allows for greater investment in these improvements. We also plan on allocating funds for a music festival for featured artists during this time.
Phase 4: Trickle Down Phase (Up to 25 years, 250k Tokens)
Year 19-43: 10,000 tokens per year
Ambassador Program: 0 tokens (0%)
Staff Members: 500 tokens (5%)
Featured Artists: 4,500 tokens (45%)
Treasury: 5,000 tokens (50%)
In this long-term phase, the platform is likely well-established and the focus is on maintaining activity levels and continuing to support Featured Artists. The higher allocation to Featured Artists and the Treasury reflects the continued need for quality content and for ongoing maintenance and improvements. The phase also prepares the platform for future growth and changes in the music industry.
Reward Allocation for Featured Artists
To incentivize consistent content creation and community interaction, the reward structure for featured artists is meant to be allocated in the following fashion:
Content Creation (65%): Featured Artists are primarily rewarded for creating and releasing their music on the Alpha Music platform. The reward amount is determined by the complexity, length, and overall quality of the music. An additional bonus can be earned for work that is exceptionally well-received by the community.
Community Engagement (10%): Interaction with fans and other artists on the platform is rewarded under the Community Engagement category. Actions such as replying to comments, participating in discussions, or hosting community events earn artists a specified amount of Entropy tokens.
Workshops (10%): Artists who host workshops on the platform earn Entropy tokens. The amount of tokens rewarded is determined by the length of the workshop and the number of participants.
Popularity (7.5%): Featured Artists can earn bonus Entropy tokens based on their popularity on the platform. Metrics such as the number of streams or downloads of their music, or the number of followers, are taken into account.
Long-Term Participation (7.5%): In recognition of loyalty and long-term commitment, artists who have been active on the platform for a specified length of time receive a bonus in Entropy tokens.
Burning and LP Mechanisms
1. Harness and Bonding:
To maintain the stability of the token, Entropy will harnessed from secondary ecosystems and bonded to Energy Nodes. This practice not only supports the token's stability but also signals the platform's health to prospective users.
2. Entropy from Channeling
When users channel their Entropy tokens to mint Create tokens, a portion of the energy is used to buy-back-and-LP Entropy tokens. This allows Idle Entropy tokens to be utilized through the network.
3. Decreasing Vested Distribution:
There is vested distribution strategy for the Entropy token, designed to gradually decrease the number of new tokens entering circulation over time. By slowing down the rate of token minting, this approach indirectly burns tokens, countering potential downward price pressure from an increasing supply.
Channeling Entropy Tokens
Entropy tokens serve multiple utilities - one to store creative energy like a battery, and the other to charge Create tokens like a Conduit. Charging Create tokens with Entropy tokens ensures that the energy in Entropy tokens are not spent, nor depleted. It is preserved while focused to charge the creative energy being utilized in the platform.
While Entropy tokens are being channeled, they do not leave the Artists possession. Instead, Create tokens are minted in proportion to the amount of Entropy tokens possessed by the Artist, known as the Energy Efficiency Rate (EER). This rate is determined by the DAO, but will initially be set at 70%. To prevent energy depletion from the create tokens, if the amount of energy channeled through the energy tokens is insufficient, then the remaining energy in the tokens are transferred into the create tokens on the users behalf. The minimum amount of energy that must be channeled per entropy token is determined by the Energy Threshold (ET). Like the EER, this rate is determined by the DAO, but will be originally set to 80%.
Transmitting Entropy
Entropy tokens are a protocol layer within the Alpha Music network. In addition to the applications described above, Artists also have the capability of developing their own applications for the Entropy token.
Artists have the opportunity to offer their music, merchandise, and other exclusive content or experiences on the platform. Fans, in return, can use their Entropy tokens to access these offerings. This creates a vibrant ecosystem that is not only bustling with creative energy but also promotes a more direct and rewarding relationship between artists and their fans.
Transmission Portals <> tEntropy
When an artist wants to share their creative expressions, they can set up a Transmission Tier, which has a minimum threshold of entropy needed for access. Fans can transmit their energy to meet this threshold using a Transmission Portal—a smart contract that manages their entropy balance.
By transmitting their energy, fans temporarily grant the Portal co-authority over their Entropy tokens, ensuring that the transmission remains active unless canceled or depleted. During this process, both fans and artists retain any associated voting power of the entropy.
As fans transmit Entropy tokens, the Portal mints tEntropy tokens in a 1:1 ratio. While these tEntropy tokens cannot be transferred, they allow the artist to channel energy into Create tokens, enabling further creative projects.
Canceling and Depleting Transmission
A fan has the authority to cancel their transmission at any time. After they initiate a cancel, there will be one of two cooldown periods to allow the Artist to make any necessary adjustments to their channeled entropy. If the fan has been transmitting for less than 90 days, there will be a 120 day cooldown period. If the fan has been transmitting for 90 days or more, there will be a cooldown period of 30 days.
If the Artist is utilizing their tEntropy for channeling, the energy stored may be deplete until breaching the Energy Threshold (ER). If this happens, the Transmission Portal recalls the tEntropy tokens and exchanges them for the original Entropy tokens, which are used to eliminate the channeling process.
Transmission In Context
An Artist wants to list their song: The song is listed in a Transmission Tier. A user who wants to have access to the song, and all other content, must Transmit enough Entropy tokens to open to portal to the tier. Once opened, the user has the right to stream and download the song.
An Artist wants to list their merch: The merch is listed in a Transmission Tier. When a user has Transmitted enough Entropy, they will have access to the merch within the Transmission Tier.
Artist A wants to host a concert with Artists B and C: Users who reach the Transmission Criteria will have access to the venue. i.e. 50 Entropy tokens to Artist A, 25 to B, and 10 to C, etc.
Bonding Entropy Tokens
Entropy tokens may be bonded to other forms of energy inside of Alpha Music Energy Nodes. These nodes will contain two or three forms of tokenized energy, allowing the underlying energy to be exchanged between them. In order to Bond, a user will require a pre-determined ratio (set by the DAO) of Entropy and either BTC, ETH, or USDC. Upon bonding the tokens together, the user will receive an fNFT which contains the Bonding Information. This will include the USDC Exchange rate of both tokens that were bonded, along with the amount of Create tokens that have already been aknowledged.
As energy is exchanged between their tokenized forms, a small portion is harnessed by the Energy Node, known as the Harness Rate (HR). The Energy Node will represent this, and the USDC equivalent of their initial deposit, in the form of Create tokens. The amount of Energy passed onto the Bonding User will be set by the DAO, known as the Bonding Rate (BR).
Once tokens are bonded, the amount that can be unbound will be equivalent to the amount of Create tokens acknowledged. The fNFT can be transferred, but it holds the authority to keep these tokens bonded until the proper conditions are met, as well as its respective Create token acknowledgments.
Bonding In Context
Scenario 1: User A bonds 100 Entropy tokens with 1 BTC Token in an Energy Node. The HR for this node is 1% with a BR of 75%. 1M USDC of volume was transferred between BTC and Entropy inside the node. Thus, the Energy Node has has harnessed 10k USDC worth of energy. The energy node triggers a facilitator to mint 10k Create tokens, and grants 7.5k Create tokens to user A.
Scenario 2: User A bonds 100 Entropy tokens with 1 BTC Token in an Energy Node. The Oracle Exchange rate of Entropy to USDC is 0, but the exchange rate of USDC to BTC is 50,000, resulting in an Energy Constant of 100 and an Exchange rate between Entropy:BTC of 1:0.001. User A is thus entitled to 50,000USDC worth of tokens in the Energy Node. After some time has passed to allow for energy to exchange between tokens, the Energy Node contains 10 Entropy and 10 BTC Tokens, with a new exchange rate of 1:1. If the BTC USDC exchange rate is still 1:50,000, then both BTC and Entropy can be exchanged for 50,000 USDC. In this same period of time, user A has received 50,000 Create tokens as acknowledgments. User A is now entitled to un-bond and harness either 1 Entropy token, 1 BTC token, or an equivalent combination of the two, such as 0.5 Entropy token and 0.5 BTC token.
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