Post on 21-Mar-2018
BUSINESS PLANDraft Version
CONTENTSCompany Vision Musiconomi Project Mission
Musiconomi Genesis
Opportunity
Solution
Market Size
Competitive Landscape
Product Token Utility
The Musicoin Blockchain
Marketing and Community Outreach Ambassadors
Educational Activities
Global Engagement - Local Ambassadors
Small is Beautiful
Early Adopters
Team
Partner and Advisors
Crowdsales and Business Roadmap Musiconomi: The Evolution of Musicoin
Musicoin Project Achievements (as of May 2017)
Musiconomi Development Roadmap
Projected Use of Proceeds
Token Allocation Breakdown
3
4
4, 5
6
7
8, 9
10
11
11
11, 12
13
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14
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15
15, 16
17, 18
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21, 22
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is an integral part of our lives that brings
us closer and connects us. It’s a common
language we all speak regardless of
nationality, religion, race, or culture.
Music is also a lucrative form of busi-
ness. People all around the world are
streaming 5 trillion songs online and the
music industry reached $15.7bn reve-
nues in 2016.
However, it’s not the musicians who reap
the rewards of their continuous effort of
making our lives a little better. The
renowned musician Ed Sheeran even
claimed he makes less than $0.0084 per
stream as the majority of the revenues go
to record labels and publishers who act
as gatekeepers to fame and success in
the industry. This puts new aspiring
artists at the whim of large corporations
that benefits only those who sit on the
top. And usually they are not the ones
who make the music.
MUSIC
01Company Vision
03
Our mission is to build a creative environment enabling
artists to exercise control over their content rights and
revenue stream by empowering a community of artists,
listeners and entrepreneurial music enthusiasts anywhere
in the world to create and exchange value in a transparent
and timely manner. Musiconomi will create a platform that
enables aspiring musicians and entrepreneurial music lovers
to work together directly to form a new global music ecosys-
tem and community. The Musiconomi model will allow musi-
cians to incentivize listeners to promote and share music,
while retaining control of their revenue, thereby creating new
music economy that inspires growth and rewards all users
efficiently and appropriately.
Musiconomi’s platform is the toolbox for building a community
that enables sharing and distribution, coupled with immediate
payments and disbursements. Our goal is to bring block-
chain-based music streaming technology to mass adoption
across the planet and build an expanding network of value,
sharing and prosperity.
Musiconomi will deliver a wide array of new features as well as
new layers of smart contracts that will enable sharing, stream-
ing, all forms of licensing so music can be enjoyed without
friction, leaving all stakeholders immediately and appropriately
compensated.
Having made significant contributions to the successful launch of the $MUSIC currency and
the beta Musicoin platform, the members of the Musiconomi team have gathered tremen-
dous amount of feedback from the community that will form a basis of its future develop-
ment and guide them on the mission of building a blockchain based music economy.
The Musicoin Project has provided an important testing ground for the concept of
pay-per-play music streaming with integrated smart contracts on a blockchain. The Musicoin
team was successful in demonstrating the feasibility and market appetite for such a plat-
form. The next step was to develop a go-to market strategy and solicit funding for the next
stages of growth and development.
01.2Musiconomi Genesis
04
01.1Musiconomi Project Mission
05It was subsequently decided that a for-profit organization would be formed to secure funding
for development of the applications, and the Musicoin foundation would be formalized by
Isaac Mao to focus on blockchain-specific issues including maintenance, security, and gen-
eral improvement.
Dan Phifer, Brian Byrne, Elio Di Iorio, David Werba and Jared Griego would move to establish
the Musiconomi Project which would build and promote an expanded music streaming plat-
form that would engage a broader community of artists, users and entrepreneurial music
enthusiasts that will bring a blockchain-based music system to the masses.
02OpportunityThe music industry has evolved over the last cen-
tury largely to support the promotion and distribu-
tion music as well as collection and disbursement
revenue. However, over the last two decades, the
nature and complexity of those activities has
changed dramatically. With the advent of the
internet and digital music, distribution has been
dramatically simplified. Similarly, social networks
with billions of active users have formed, making
efficient and organic growth possible.
Most recently, digital currency and blockchain
technology have provided a more efficient and
elegant method for collection and disbursement
of funds that works globally and transparently.
Together, these advancements in technology
make a new music industry not only possible, but
inevitable. The efficiency gains that come with
removing or replacing outdated systems and
organizations with low-cost, automated alterna-
tives will give a significant advantage to first-mov-
ers.
By recognizing and embracing new technological
advancements and building a self-sustaining plat-
form that harnesses the power of each, Musi-
conomi will be well positioned to be a dominant
player in a new music economy. Furthermore, the
Musiconomi platform will be accessible to the
aspiring and amateur artists that currently have
few options other than to give their music away
for free in hopes of being “discovered” by a major
label.
By allowing new artists to have immediate access
to the social marketing engine that Musiconomi
will provide, artists will be able to begin connect-
ing with fans and collecting revenue as soon as
they have track they are ready to share, thereby
adding a new segment to the music economy that
has not been well-served traditionally.
06
03SolutionMusiconomi will run on the Musicoin blockchain and use Smart Contracts to automate the
collection and disbursement of payments to musicians, using a “Pay-per-Play” model. Under
this model, a payment is sent in digital currency ($MUSIC) directly from the listener to a digi-
tal contract, which then automatically distributes funds as designated by the artist or rights
holder.
In addition, artists will be able to incentivize social sharing and growth by allocating a
percentage of revenue to users that share or promote their music. Critically, the artist is in
complete control of the reward. This will allow artists to decide between higher revenue or
more promotion at the granularity of an individual track.
07
25%
PPP
GUITARIST
25%DRUMMER
50%SONGWRITERLISTENER
PAY PER PLAYCONTRACT
SINGER
INSTANT PAYENT. AUTOMATICALLY DISTRIBUTED.EVERY PLAY.
04Market SizePaid streaming has become the preferred method for consuming music through services
such as Spotify and Pandora. However, even though the total number of streams surpassed
5 trillion in 2015, both the services that drive the growth and the artists themselves are strug-
gling to make a profit. In large part, this is due to the complex web of intermediaries that take
a cut of the revenue for each play.
08
MARKET DATA
201620152014201320122011201020090
-100
-200
-300
-400
-500
-600
-700
SPOTIFY AND PANDORA GROWING LOSSES
MAKES CURRENT STREAMING UNSUSTAINABLE
PANDORA SPOTIFY
In theory there is a $25bn market for music streaming if we look at the current numbers.
Currently the music industry is at $15.7 in revenues, roughly 60% of where it could be.
09
20
15
10
5
0
201620152014201320122011201020092008200720062005200420032002200120001999
DIGITALPHYSICAL PERFORMANCE RIGHTSSYNCHRONISATION
INDUSTRY REVENUES IN $bn
BETWEEN 1999 AND 2016
While the legacy industry has attempted to
adapt to digital music era, the old system of
intermediaries still exists behind the scenes,
taking a significant portion of revenue. Art-
ists ultimately receive only a small fraction of
the revenue and have almost no visibility into
the process and no way to verify that they
were compensated appropriately. Block-
chain technology offers a significant advan-
tage in this respect, as all transactions on the
blockchain are visible.
Other attempts to circumvent the aging
industry have been made by systems such as
Napster and BitTorrent, but they failed to
create a sustainable model by neglecting to
collect revenue and compensate artists.
While peer-to-peer file sharing may have a
role in the new music economy, it needs to be
done in a way that content creators and
distributors are compensated according to
the value they add.
05Competitive LandscapeSubscription
streaming services
Peer-to-peer
file sharing networks
The Musiconomi solution is: cryptocurrency
for payments, and smart contracts for distri-
bution and tracking who should be paid for
each track. Ultimately, P2P sharing could be
supported, and key management(for audio
decryption) would be the only required cen-
tral service.
Although there are several other startups
attempting to connect music and blockchain,
like Ujo, Voise and AudioCoin, they do not
have traction in the market yet. In terms of
users, Musicoin (with more than 4000 users
on it’s current platform) is far ahead of Voise
and AudioCoin (not open for testing or use).
Ujo is currently in a closed alpha testing
period.
Solution space
Competitive environment
Musiconomis experience and success with
Musicoin.org gives its team a significant
advantage over other entrants into the
music-on-the- blockchain-space. However,
additional entrants in this space will only help
to educate the wider, non-technical public
about the potential for a relationship
between cryptocurrency and music. While
we believe the Musiconomi model offers a
more holistic approach to the new music
economy, we recognize that basic aware-
ness and acceptance of cryptocurrency is a
major hurdle.
Although traditional players, such as Spotify,
Google Music, and Pandora, are well estab-
lished, they offer very little that allows
non-musicians to participate directly in the
music economy. Additionally, Musiconomis
initial focus will be on independent musi-
cians and micro-labels, which are not
well-served by the traditional music industry.
Therefore, we are confident that we will expe-
rience significant growth for the foreseeable
future before encountering direct competi-
tion from traditional players.
Competitive advantage
10
Company Vision Musiconomi Project Mission
Musiconomi Genesis
Opportunity
Solution
Market Size
Competitive Landscape
Product Token Utility
The Musicoin Blockchain
Marketing and Community Outreach Ambassadors
Educational Activities
Global Engagement - Local Ambassadors
Small is Beautiful
Early Adopters
Team
Partner and Advisors
Crowdsales and Business Roadmap Musiconomi: The Evolution of Musicoin
Musicoin Project Achievements (as of May 2017)
Musiconomi Development Roadmap
Projected Use of Proceeds
Token Allocation Breakdown
06ProductMusiconomi will expand on the concepts developed as part of the Musicoin project and will
run on the Musicoin blockchain. In particular, the Pay-Per-Play model will continue to play a
central role in the system. Pay-per-play is an easy-to-understand model that allows artists to
specify the revenue allocations at the time of upload and be confident that each play will be
properly accounted for.
Using PPP as the core of the system, Musiconomi will create the necessary tools to grow a
self-sustaining music economy. In particular, the Musiconomi Token (MCI) will serve a cen-
tral role by enabling features that will allow entrepreneurial (and even casual) users to partici-
pate in a meaningful way. By “locking up” a certain amount of MCI tokens, users demon-
strate their mutual interest in the success of the platform, thereby aligning incentives.
As Musiconomi builds and expands the platform, the MCI token will gain new functionality.
In general, locking up MCI tokens will enable specific types of functionality that will allow
users to participate directly in the new music economy. The number of tokens and duration
of the lock-up required will be dependent on the functionality it enables. However, many
basic features that users would expect of any music service will be available without requir-
ing token lock-up.
For detailed descriptions of the initial set of planned token utilities please see the blog post
at
06.1Token Utility
06.2The Musicoin Blockchain
11
The founders of Musiconomi spent many months developing the Musicoin platform and
building the community from the ground up, and they are passionate about its underlying
principles. All the the proposed features and plans to further develop the concept of bringing
https://medium.com/musiconomi/the-musiconomi-mci-token-utility-a-closer-look-d9f88feb73ef.
Having made significant contributions to the successful launch of the $MUSIC currency and
the beta Musicoin platform, the members of the Musiconomi team have gathered tremen-
dous amount of feedback from the community that will form a basis of its future develop-
ment and guide them on the mission of building a blockchain based music economy.
The Musicoin Project has provided an important testing ground for the concept of
pay-per-play music streaming with integrated smart contracts on a blockchain. The Musicoin
team was successful in demonstrating the feasibility and market appetite for such a plat-
form. The next step was to develop a go-to market strategy and solicit funding for the next
stages of growth and development.
12blockchain pay-per-play music to the masses through Musiconomi will be designed and built
in the spirit of the original vision of the founders. Therefore, it is preferred that the Musi-
conomi platform use the Musicoin currency and run on the Musicoin blockchain.
That said however, it is the responsibility of the proposed Musicoin Foundation to ensure that
the Musicoin blockchain is secure, scalable and up to date. The Musiconomi team will collab-
orate with the Musicoin Foundation and is prepared to provide it with funding in order to
achieve that end.
At present, blockchain technology is in its infancy. Its potential is tremendous, but unexpect-
ed challenges can arise. As prime examples, Ethereum was forced to implement a hard fork
only a year ago, and Bitcoin has been plagued by the ‘block-size debate’ for years - without
resolution.
As much as the Musiconomi team is committed to the Musicoin philosophy, it is also com-
mitted to ensuring the long-term viability and sustainability of the Musiconomi platform.
Therefore, the development team will continuously monitor the development of emerging
technologies that could provide a significant improvement in security, scalability, efficiency,
or user experience.
The members of the Musiconomi project have contin-
ued the work they began as members of the Musicoin
team of actively recruiting artists to the project
through a combination of select event sponsorships,
music conference presentations, strategic partner-
ships, educational programs and multiple social media
channels.
Flowing from that activity, The Musiconomi project will
expand marketing and promotional activity on a mas-
sive scale, to include a focus on emerging indie artists,
artist labels, distributors, and tech-savvy artists and
entrepreneurs.
Building on the Musicoin Ambassador program, the
Musiconomi team will continue to identify and engage
with individuals who are able to provide support and
value to the platform through cross-promotional activi-
ties and synergistic/collaborative use of resources.
Whether it be musicians, promoters, educators or
community organizers, the Musiconomi team will
actively seek to build a strong contingent of ambassa-
dors who will spread the Musiconomi message far and
wide.
07Marketing and Community Outreach
13
MARKETING STRATEGY
07.1Ambassadors
14
The founders of Musiconomi spent many months developing the Musicoin platform and
building the community from the ground up, and they are passionate about its underlying
principles. All the the proposed features and plans to further develop the concept of bringing
We realize that blockchain technology is in its infancy - in a similar way that the internet was
very much a promising but unfamiliar technology in the late 1990s. The Musiconomi project
and its rapidly growing community is uniquely positioned to bridge the gap between technol-
ogy professionals and non-technical potential users of blockchain technology based applica-
tions.
In the beta testing of the Musicoin platform the team began recruiting instructors and facili-
tators who would provide tutorials and support services to Musiconomi participants to both
familiarize them with platform features, and empower them to build their own presence in
Musiconomi that would add value to the network and enables them to generate revenue for
themselves and other stakeholders.
07.1Educational Activities
The Musiconomi team is currently identifying strategic traditional and non-traditional geo-
graphical areas to establish community hubs.
Partnering with local artists and other music industry professionals and enthusiasts in devel-
oped countries as well as in the rapidly urbanizing emerging markets, the Musiconomi plat-
form will support and enable local music economies to exist in a way that the legacy music
industry cannot.
In bypassing the complicated and wasteful myriad of intermediaries inherent in the tradition-
al music oligarchy, artists in developing nations will be able to share their music free of cost,
enjoy the full support of the Musiconomi network, and receive payment that is relatively high
compared to average worker wages in their local community.
As an example, an artist with a little local support in rural Africa may be able to earn the
equivalent of $60 USD per month which may be significantly more than the local average
monthly income. Such an artist may then begin to share her success story across neighbour-
ing communities, and soon there could be hundreds and thousands of artists from emerging
markets earning income in a way that was never before possible or even imagined.
07.2Global Engagement - Local Ambassadors
15
With the advent of the internet, music has become much more ‘niche’. New genres are
emerging all the time, and many labels are becoming increasingly genre-specific and
genre-diversified.
The Musiconomi team envisions thousands of micro-labels and artist labels that represent
artists in non-exclusive agreements, where songs are signed - as opposed to artists. There-
fore, an artist could conceivably release five songs on five different labels at the same time.
No longer is it necessary for an an artist to aspire to signing a traditional record deal.
Simply develop relationships with fans, and ensure they are incentivized to share/distribute
your music.
07.3Small is Beautiful
The Musiconomi team recognizes that plat-
form development and growth will occur at an
accelerated rate over a number of years.
Therefore, the first one million users may a be
reached within three years, and then the next
one million users may be achieved in less
than 3 months. This means that the early
stages of development provide the greatest
amount of opportunity to become established
and productive on the platform, earning many
streams (and potentially payments) and
accruing all of the benefits that platform
pioneers tend to enjoy down the road as mass
adoption begins to happen.
The Musiconomi team is focused on continu-
ing to nurture and incentivize early adopters
who will form the core knowledge, value and
support base for the Musiconomi community
in the long run. To that end, early adopters are
being rewarded with early access to MCI
tokens as well as advanced access to new
features that are developed subsequent to the
conclusion of the crowdsale.
07.4Early Adopters
16It was subsequently decided that a for-profit organization would be formed to secure funding
for development of the applications, and the Musicoin foundation would be formalized by
Isaac Mao to focus on blockchain-specific issues including maintenance, security, and gen-
eral improvement.
Dan Phifer, Brian Byrne, Elio Di Iorio, David Werba and Jared Griego would move to establish
the Musiconomi Project which would build and promote an expanded music streaming plat-
form that would engage a broader community of artists, users and entrepreneurial music
enthusiasts that will bring a blockchain-based music system to the masses.
ENTREPRENEURIAL
MUSIC ENTHUSIAST +
STRATEGIC PARTNERS
Fund platform development
by purchasing MCI tokens and
market/distribute both music
and music related goods
and services to the
listener.
MUSICIANS AND
PRODUCERS
Invest energy to create
works that get released for
listeners’ enjoyment.
LISTENERS
Guide the market by making
choices about what they
enjoy and how they prefer to
experience music.
SMARTCONTRACT
immediate
payment
ONBOARDING NEW USERS
SUPPORT (FAN)COMMUNITIESAND FEEDBACK
EFFICIENT/PREFERREDDELIVERY CHANNELS
08Team
17
The Musiconomi team first began working together on the Musicoin project. Dan Phifer
began working with Isaac Mao (and others) on early prototypes of the software in October of
2016, with Brian Byrne joining in late 2016. Elio Di Iorio, Jared Griego, and David Werba began
contributing to the project in early 2017. Together they made key contributions to get the
$MUSIC currency added to the exchanges, develop the Musicoin web application, and intro-
duce the project to a global audience of both artists and music fans.
Dan has been in software development for nearly 20 years. From the Johns Hopkins Applied
Physics Lab, to Amazon, to Musicoin.org, Dan has made critical contributions to a wide range
of projects over his career. As a co-founder and primary developer at Musicoin, Dan helped
to make the ideas in the Musicoin whitepaper a reality and is uniquely positioned to do the
same for Musiconomi..
Dan PhiferCo-Founder and CTO
Brian brings over 20 years of music industry experience to Muscionomi, from front man of
multi-platinum selling Canadian rock band I Mother Earth, award-winning solo work, and
founder and curator of several charity music projects, including Surf, Sing, Change, Arizona
Project and close work with Unison Benevolent Fund. He has developed incredible relation-
ships with labels, management, agents, and artists, working with Warner, Universal, Dine
Alone, Live Nation, United Talent Agency, Clear Channel and more. Brian is excited to com-
bine his passion for blockchain and his love for Music to show what Musiconomi has to offer
to the music industry 2.0.
Brian ByrneCo-Founder, Chief Musician Ambassador
18
David has a deep background in music as both an artist and web developer. After founding
two successful startups, including Music Forte, Inc. (2003 - 2012), he joined Nexstar Broad-
casting Group as a marketing strategist, web developer, and producer of both local and
national TV shows for FOX and NBC. More recently David was a Shorty Awards finalist for his
non-profit work in the Human Rights sector and is the co-owner/Editor-in-chief at IndieMu-
sicPlus.com. Also a composer and veteran touring musician of over 800 shows, David
earned a degree in Psychology from University of Illinois.
David WerbaCo-founder, Chief Marketing Officer
Peter means 'the rock' but it might not be too far of a stretch to mean 'rock star' in this case!
With over a decade's worth of full stack web development experience in both corporate and
startup environments, Peter is the mastermind behind the 3D Printing site PatternSpace.co
and the application architect that every successful team needs as a cornerstone. Couple that
with his insatiable curiosity and belief in Blockchain technology, and you can just sit back and
watch the fireworks.through many genres his whole life. Elio earned his degree from McMas-
ter University in Hamilton, Ontario.
Peter MooneySenior Application Architect
Jared has had various roles throughout his career. Building homes from a young age and
then migrating into the IT field over 20 years ago. Jared has completed multiple projects and
ventures in Denver, Boston, NYC, Orlando and Los Angeles to name a few. Jared has been
mining and working with cryptocurrencies since 2013. Figuring out how to turn silicon into
beer has always been a dream and mining crypto makes it come true.
Jared GriegoCo-founder, Blockchain Engineer and Operations
Elio is a true generalist and futurist with extensive experience in a wide range of fields and
issues. Elio has held elected public office as well as the position of International Secretary
and Spokesperson for a major political party in Canada, and he pioneered the use of the inter-
net for Canadian political campaigns in 1997. As a child, Elio studied classical guitar, piano
and musical theory at the Royal Conservatory of Music, and has been a music enthusiast
through many genres his whole life. Elio earned his degree from McMaster University in Ham-
ilton, Ontario.
Elio Di IorioCo-founder, Chief Organizer and Spokesperson
09Partners and Advisors
19
Daniel ZakrissonBlockchain Economics and Strategyhttps://www.linkedin.com/in/danielzakrisson/
Erin TaylorCyber-Security, AML and Compliance Specialisthttps://www.linkedin.com/in/erin-taylor-78301846/
Addison Cameron-HuffBlockchain Law Advisorhttps://www.linkedin.com/in/addisoncameronhuff/
Anthony Di IorioBusiness Partnership Developmenthttps://www.linkedin.com/in/anthonydiiorio1/
Jeff DennisBusiness Development Legal Advisorhttps://www.linkedin.com/in/jeffdennis/
Tristan KeyteInternational Music Consultanthttps://www.linkedin.com/in/tristan-keyte-b7b19116/
Eden DhaliwalBlockchain Digital Licensing Specialisthttps://www.linkedin.com/in/edendhaliwal/
Mike TurnerMusic Industry Advisorhttps://en.wikipedia.org/wiki/Mike_Turner_(musician)
20
With the success of the basic Musicoin platform, the Musiconomi Team has been eager to
build a new version of the platform that provides all the features and opportunities for our
growing community to participate in the new music economy.
We are confident that we will continue to develop the platform with the same kind of success
we have enjoyed up to this point.
The Musiconomi platform will reserve a nominal fraction of each transaction resulting from third party sharing and distribution in order to fund basic operations of the platform. All artist/rights-holder generated streams will remain 100% directly remunerated without any revenue sharing to any third party or to fund platform operations.
Musiconomi aims to break-even within 60 months.
10Crowdsales and Business Roadmap10.1Musiconomi: The Evolution of Musicoin
Launched in February 20174200 users39000 streams800 Slack MembersMultiple events and sponsorships
10.2Musicoin Project Achievements (as of May 2017)
10.3Platform Sustainability
21
Scope of Work:
10.3Musiconomi Development Roadmap
$6mil USD ThresholdOpen Musiconomi office in a strategic market centre
Launch Advanced Blockchain-Based Music Streaming Application (upgrade/redesign Musi-
coin prototype)
Build and Support Basic Sharing/Backing Features
Develop Playlist Feature
Develop Playlist Sharing Features
Develop Mobile App
Time to implement
8-12 months
Target number of users
150k
23
10.4Projected Use of Proceeds
70%
60%
9% 31%Administrative
LegalOverhead
Development Expenses
PR
Marketing
NEXT
48 MONTHS
30%
9%Administrative
LegalOverhead
70% Development Expenses
21%PR
Marketing
FIRST
24 MONTHS
24
To be Issued: 100 million MCI tokens
The team has had the benefit of studying numerous other crowdsales and draws on the
expertise of crowdsale pioneers Cofound.it to ensure an appropriate and sustainable alloca-
tion of crowdsale proceeds and tokens.
50% release to public
25% team, partners
25% strategic partnership reserve
Team tokens will be vested for 18 months.
Strategic Partnership Reserve: This allocation will be for music professionals such as inde-
pendent/artist labels, musicians, DJs, producers, promoters, distributors etc. to incentivize
them to connect their fans/network to the Musiconomi platform. It will also be used to com-
pensate strategic advisors and ambassadors who are willing and able to support/promote
the Musiconomi platform.
11.1Breakdown
11Token Allocation