Space Summary
The Twitter Space Community Call #3 hosted by MusicProtocolX. In this insightful Twitter space, experts delved into the transformative world of music royalties, tokenized into liquid digital assets using $mbUSD. Discussions highlighted the pivotal role of NFTs, blockchain interoperability, and the metaverse in reshaping music finance for the digital era. Collaborations between artists and blockchain developers are driving innovation, while NFTs revolutionize ownership structures and direct artist-to-fan engagement. By merging NFTs with $mbUSD, new avenues for engaging with music royalties are being explored, opening innovative opportunities for creators and investors in the evolving intersection of music and blockchain.
For more spaces, visit the NFT page.
Questions
Q: How does leveraging $mbUSD tokens impact music royalties?
A: $mbUSD tokens allow for the tokenization of music royalties, creating liquidity and investment avenues.
Q: What role does blockchain interoperability play in the music industry?
A: Blockchain interoperability enhances NFT utility in music by enabling cross-chain compatibility.
Q: Why are NFTs valuable for artists and investors in the music sector?
A: NFTs provide a novel way to engage with intellectual property rights and ownership structures.
Q: What opportunities does the metaverse present for music experiences?
A: The metaverse offers immersive music experiences through innovative tokenization and virtual environments.
Q: How are collaborations between artists and blockchain developers shaping music finance?
A: Partnerships between artists and developers drive innovation in music finance through blockchain technology.
Q: What benefits do NFTs bring to the music world in terms of ownership?
A: NFTs revolutionize ownership in music, facilitating direct engagement between artists and fans.
Q: How does the fusion of NFTs and $mbUSD offer innovative engagement in music royalties?
A: The integration of NFTs and $mbUSD introduces creative ways to interact with music royalties.
Q: What does the discussion on $mbUSD and music royalties signify?
A: The conversation showcases the convergence of music and blockchain, exploring new financial avenues.
Q: What insights does exploring music royalties as digital assets reveal?
A: Tokenizing music royalties illustrates the evolving landscape of music finance with digital asset innovation.
Q: In what ways does combining blockchain technology and music royalties benefit creators and investors?
A: The fusion of blockchain and music royalties opens new opportunities for both creators and investors in the industry.
Highlights
Time: 00:15:20
Tokenizing Music Royalties with $mbUSD Exploring how $mbUSD tokens are transforming music royalties into digital assets.
Time: 00:25:42
Blockchain Interoperability in Music NFTs Understanding the role of blockchain interoperability in enhancing NFT utility in the music sector.
Time: 00:35:55
Artists' Engagement with NFT Ownership Discussing how NFTs offer artists unique ownership structures and direct fan engagement.
Time: 00:45:18
The Metaverse's Impact on Music Experiences Exploring the potential of the metaverse for immersive music experiences through tokenization models.
Time: 00:55:30
Collaborative Innovation in Music Finance Examining the partnerships between artists and blockchain developers shaping the future of music finance.
Time: 01:05:45
Revolutionizing Music Ownership with NFTs The transformative role of NFTs in revolutionizing ownership structures in the music industry.
Time: 01:15:55
Innovative Music Royalty Engagement with NFTs Exploring new ways to engage with music royalties through the fusion of NFTs and $mbUSD.
Time: 01:25:10
Convergence of Music and Blockchain Highlighting the intersection of music and blockchain technology in financial discussions.
Time: 01:35:22
Evolving Music Finance Landscape Analyzing the changing landscape of music finance through the tokenization of music royalties.
Time: 01:45:30
Unlocking Opportunities for Creators and Investors Discovering the new avenues created for creators and investors through blockchain and music royalties.
Key Takeaways
- Leveraging $mbUSD tokens can tokenize music royalties, creating new investment opportunities.
- Blockchain interoperability is enhancing the utility and value of NFTs in the music industry.
- Music NFTs offer artists and investors a unique way to engage with intellectual property rights.
- The metaverse holds potential for immersive music experiences through innovative tokenization models.
- Collaborations between artists and blockchain developers are shaping the future of music finance.
- NFTs are revolutionizing ownership structures in the music world, offering direct artist-to-fan engagement.
- Intersecting NFTs and $mbUSD brings about innovative ways to engage in music royalties.
- The discussion on $mbUSD and music royalties highlights the intersection of music and blockchain technology.
- Exploring music royalties as liquid digital assets showcases the evolving landscape of music finance.
- The fusion of blockchain technology and music royalties opens new doors for creators and investors alike.
Behind the Mic
Community Space Introduction
All right, let's get started on today's community space. Can everyone hear me okay? Yes, I can. Sorry, I couldn't find the tab. No worries. It's a very intimate one, it looks like today. Yeah, it is. Can everyone in the community hear me? I saw that you were posting that you couldn't. Now? You can give a thumbs up if you can hear me. Okay, I'm going to assume until told otherwise that everyone can hear Sergio and I. So thanks everyone for joining. I guess on your lunch break, is there any better way to spend your lunch break than talking to Sergio? I don't think so. So thanks for joining in, guys. We're just going to cover what we have been doing over the last two weeks. The goal of these calls is to keep on hiring them every two weeks just to give the community updates on what the team is working on and to field any questions or topics that might be of interest to you guys.
Upcoming Topics of Discussion
And we can, we're going to, I guess, test them at different times to see when everyone is available. But let's kind of just dive into a few things. So I think we're going to talk about ape Bond, we're going to talk about aerodrome a little bit because that only started last week. We haven't had a community call since then. And we're going to talk about, I think, a little bit about MbusD as well. So I would suggest maybe, Sergio, if it's cool with you, we start with Aerodrome and not first start with what we're doing there, but maybe just kind of COVID a little bit about how aerodrome works and why we find it a very interesting Dex to partner with, aside from the fact that it is, I think, now the largest Dex in the ethereum ecosystem and leading, of course, on base. But I think for our community, it was a new space, a new tool, a new platform for them. So maybe we can just talk through what is aerodrome and how does it work and then why we kind of chose to partner with them.
Aerodrome Explained
Yeah, of course. But I think that the basic decision is always like the same one. When you look at Dex is a partnership. And all you look at, like you say, the participation, the engagement, the numbers. So, I mean, I think aerodrome is doing, I think, a lot better than uniswap if you look at the last know, a few months performance. So definitely is the driver of liquidity base. We have an interest to get deeper and deeper in our relationship with base, especially under the rearward asset. If you want tokenization narrative, which I think Coinbase Blackrock. I think a few people in the base ecosystem are thriving like heavily. So it was making a lot of sense actually was the plan since day one because we started the white listing even before the limit, the LPP back in the days in fjord. So two months ago, then we got the approval, I think just beginning of August, and the market was a little bit, how do you say, choppy.
Market Dynamics and Strategy
So we started to understand what could have been the best transition, the timing, depending on what was going on. We took also the decision to somehow change the pair. So we thought that it was somehow the time for pairing up with Ethereum. Considering that hopefully. I mean, every time I look at the market in the morning, I tell myself that maybe it's not going to never happen. I mean, everyone believed that we are pretty much at the beginning of the next cycle. So obviously makes sense to get a bit of tailwind. So we restructure if you want this sort of decentralized exchange listing in aerodrome has always been our choice. Number one because went on base then obviously the whitelisting is important because of the incentivization system. And this one is how out of drone works. You could open peer and pools like even without the white listing, but you're basically excluded from the incentivization system.
Community Participation and Challenges
This is something that we are, I think as a team as well, trying to understand how it's going to play out. Because with the listing last week we realized that it works. I mean, it brings participation, it brings interest, it brings volume, it brings engagement around the token. But then you have all these numbers and all these settings that you need to somehow optimize, right, because you have a limit. I think someone asked yesterday whether we could increase the incentive. Like when we listed last week, I think we pushed it a little bit too far. We didn't really know about the 3% limitation over either TVL or market cap. 2% of market cap and 3% of TVL. We completely missed it out. Plus I think someone in the community made a mistake or a few people added incentive rather than liquidity.
Understanding Liquidity Dynamics
So effectively the reward last week was a lot higher than what is the limit that we can execute. So this week we're trying to understand how everything is going to get to an equilibrium and how, I don't know, everything is going to be optimal for the participants. I think that we got good liquidity provision. I mean, I haven't looked at the chart this morning. I'm going to have a look again today. I mean, we're still sitting over four hundred k of liquidity, so it's pretty good. And I think that's the system. I think the crypto works around participation, engagement and rewards. So it's a great environment to provide this engagement and reward the participation and engagement. That's, I think, bottom line, I don't know if there's any more technical question that we need to answer on how aerodrome works from the community. Maybe UK collected it. I mean, the principle is this one you have, you incentivize voters basically provide you the allocation, the percent of allocation that you get on the new emission of reo token, and then the reo token become the reward for the liquidity provider.
Incentivization in Crypto
That's very simply how the system works. And when it comes to why you think aerodrome is starting to form, and why we decided to essentially focus just on this Dex and move a little bit more from Uniswap, why do you think, I mean, you kind of already touched, you touched on this a little bit already, that like space being linked to Coinbase, and now they're seeing a big movement around the RWA space, which of course is really important for us for this next cycle. Why do you think this kind of incentivization pooling and voting works right now in the crypto market? I think the crypto is about incentivization. Right. What we design everyday system under which people can be rewarded, so support the community, members can be rewarded for participating to the mechanism, the economy, the experience, the product that you're building.
Challenges of Participation
So without those systems, it's a lot more difficult to increase the positioning of the token or to attract new participants. What I always assume is that you have very much a transactional due diligence at the beginning. So if you get on uniswap and you have no system to incentivize, I mean, just marketing somehow is going to provide the exposure that you need to increase the participants in the pool. If you are in an environment where you have a different incentivization system, is a lot more likely that you're going to get participation because of that economic system. And that's what we need to increase token holder, to increase the positioning and distribution of the token, and the usual stuff. So the very important incentivization and reward system, I think, in crypto, to some outgrow.
Introduction to Ape Bond
Yes, maybe that's a good segue into eight bond and starting similar to aerodrome, just explaining a little bit more about what a bond is, how it works, and why what we're, what our partnership which is more of a short term partnership is with them. But I think that again, like I don't think is something that maybe we would have been doing alone. But when the team reached out and basically said that we're gonna come back to base and we're gonna. And we're gonna somehow run another bond experience in Bayes because it was very successful the previous one. Again we saw an opportunity to stay together with the ecosystem. That was the angle that made us deciding, right.
Decision Making for Partnerships
Because we didn't want to somehow raise. It was not. It was, it was not the objective.
Project Objectives and Positioning
The objective was, is a successful project is like coming back to base with a value proposition for the base ecosystem. So we want to be part of it because we want to somehow double down on the base positioning. And we want to also use it as an opportunity to attract, get on board new token holders. Because again, they have their discount system and their own somehow incentivization within the structure of the bond. But I always saw it as an opportunity to distribute, as an opportunity to reach a wider audience, let's put it away. That's the way we see it.
Involvement of Record Holders
And how can record holders involved with the eight bond campaign that we're running right now? I mean again, it's about buying the token. So I think the only trick is that you have a bit of a discount compared to market price. I'm not sure how much it is right now. It is based on the launch price in exchange of, I think a long investing and certain terms. So I still see it as very much an opportunity for new holders. I would assume that, I mean regular holders don't need the vesting, don't need the incentivization and maybe prefer to participate in the liquidity provision, the liquidity pool.
Opportunities for Exposure
So our, I don't know, current token holder to participate in the actual aerodrome environment. But again, it's a good opportunity to get more people to know about what we do, what's the goals. Because at the end of the day when you take a token decision like the due diligence is always a process, everyone does his own research. So when we get these opportunities and they are like ecosystem opportunities of base ecosystem opportunities, we always jump on board because we see it as a good opportunity to position and strengthen the relationship with the ecosystem.
Building Partnerships with Plume
And maybe that's also. You're always creating good segues, Sergio, for like the next. The next kind of topic of something that also came out this week is building up when you're talking about new relationships, reaching new ecosystems, reaching new audiences maybe we can, you can tell the listeners a little bit more about our partnership with Plume and their testnet. I can tell you now that the holders, I think yesterday was around thirty three k of mbusd and now we're at over 55k. So maybe just a little bit more about, you know, what is doing, why we partner with them, how the NBUSD testnet works, and what that means for, you know, what's coming out with us in terms of this partnership.
Understanding Plume and Testnet
I mean, maybe, I mean, I'm sure that you know a lot more in details like all the background about Plume network. So please, chipping Katie, because I mean, running ecosystem and partnership, you sometimes do a lot more due diligence and detailing than what I do. Right. But I mean, it's a big project. It's like a darling project in the real world asset, if you want narrative sitting on, if you want the ethereum ecosystem, I would say things are really good. We spoke to the team and then I clicked on a very simple statement. I think it was the same thing I was sharing yesterday during the Twitter space with the Plume team.
Value Proposition of the Testnet
The testnet, it's basically the real world without real money, right? So the angle, what was the angle is to show people the user experience, to get people comfortable on the process, to buy something or to engage with something. And then the only difference in the future is that it's going to be just a little bit more complex, the underlying technology and product structuring, because you are basically involving real money and real transaction. But that doesn't mean that you cannot test, invalidate the product and the offering in a testnet environment.
The Importance of Market Understanding
And that was somehow the pitch or if you want the principle, which I bought into, like, I don't know if you bought into the same thing, but I say this is actually perfect. And that's where I think the testnet of plume is very successful, right? Because it's the value prop is we're going to be the infrastructure layer for real World asset project and tokenization. The testnet is about building the ecosystem, is about building the offering. It's about showing users which are the projects and if you want the quality of what is going to run on top of the main net.
Liquidity and Demand Challenges
And it just makes a lot of sense because we know that we real world asset, I mean, the biggest problem is am I going to have the liquidity, am I going to have the ecosystem big enough to somehow support the business volume that we need to support if we, Rebecca, we always argued, I mean, we are speaking with around a billion in terms of catalogs. And I would argue that I will struggle if tomorrow. The question that were asking is are we struggling to bring a billion or reward asset and actually raise that amount and raise the interest.
Understanding the Market Value
So the numbers that you gave right now, what is the value of Mbusd? Sorry. It should be what, 800 million, 900 million? Yeah, I have to check that. I closed the block explorer. Let me just pull it up again. But yeah, I mean, just going back to what you said just now, I think I remember we spoke to a project, were talking about the value that we have ready to onboard and there was the liquidity in the RWA space is still like, it's obviously still growing more from the retail side.
Highlighting the Interest in RWA
And what plume is building in such a short amount of time with some of the biggest investors in the web three and web two space is like it's a great place for us to be. Let me just check the stats for you. But anyway, that's the principle, right? You could argue that if you run a number of testnet experimentation, you could start having an idea, a perception on how many people are interested, what could be the real numbers that definitely you cannot do a like for like so a one to one.
Market Analysis through Experimentation
But you could assume, I mean if I minter in test net billion, maybe 3% can be the conversion, maybe 5%. So I mean, I can start somehow shaping a way to bring the real offer into market. That's I think the job that we need to do as a team because, you know, you cannot get it wrong. You cannot, it's like NFT drops, you cannot get NFT drops unsold. So the trick is always there. One, I mean, if you have to issue stuff, you have to make sure that you can cover up.
Ensuring Demand and Supply Balance
You bring the supply and you need to cover the demand. And I think in real world asset, we are still somehow defining exactly how big is that demand and how it's going to be segmented between different offering because you still have different projects with different products which are somehow trying to attract the same liquidity and the same consumer base. So it's purely a numbers game. So testnet and experimentation does all is helpful to help you adjust your analysis and your understanding of the market opportunity.
Final Thoughts on Testnets
Well, at least you do your homework. That's the basis of what we need to do. That was pretty cool. I mean those guys are very excited that very good at doing what they do. I think a plume. Yeah. And the, I think the testnet numbers in general for overall offering have been huge. Like it's in the. It's in the million. So that's. It also shows that there's a lot of interest and drive towards the RWA narrative, not just for the cycle, but in general.
Community Engagement and Focus
I mean, you've successfully kind of covered what we've focusing on for the last two weeks. Is there anything that you want to like touch on about what's coming up for the community or for a record over the next weeks or what you would probably urge the community to kind of like focus on whether it's like, you know, diving into aerodrome a little bit more. I think the testnet will run for like two, three weeks. So we'd love to get more people involved there.
Sharing Insights from Workshops
But I hand over to you, Sergio. But I was thinking to lead you away, I mean, keep on lying with me. I was thinking, if there is anything out of the secret team workshop that we ran last week that we want to share. I have one idea. Maybe you have another one. No, I was going to make a joke and see if Ivan wanted to come onto the stage and share his opinions, but he's not here.
Plans for Record Utility
And that was my joke. I'll let you share yours because I actually don't know what you're going to share and then I can see where I can build off it. No, I'm thinking that the only topic that people will be interested in is understanding how we built record utility into USD, or at least what is the plan to create that relationship. Yeah, I think actually that's a good.
Future Content on Record and NBUSD
I mean, I think we should do more content around in general. I think a lot of people have asked that over the last couple of weeks is like, you have record one side, but how does that play into NBUSD and what's the value that it's going to be the holders as well. And maybe also how NBUSD itself can grow in value. And the narrative around what you were talking about, I think on the spaces yesterday around the streaming.
Initial Thoughts on Economic Trends
Okay, so like two completely different points which I think interlinked to each other. MBusd is not expected to change in value. Right, because I mean, the terminology bond tells you there is an asset until the yield is in line with the market expectation. So you don't have economic transition like the one that we've just seen between the long term and then short term in the US, which is driving to recession. And that's where the market gets imbalanced. But until it's balanced, or the terms in, the yield is in line with the expectation of the people investing in the yield effectively is expected to have a relatively very low volatility. Like, it's not a stable coin. Just wanted to make sure, like the point is not to build a stable coin, but bonds are a lot more stable than shares in terms of price, unless something dramatic is going to happen to market.
Market Dynamics and Capital Flow
So the trick, and that's how I'm going to link. I'm going to link with the record utility. So the point is, I was actually sharing this one as well in the Twitter space yesterday to know how many people looked at the tweet. There is a tweet pinned in my profile which is somehow the free direction which I believe are going to drive somehow real world asset tokenization. And one angle is ETF's mainly stable. Could be sitting in there. Stable for me is like the old version of RWA. I'm very conflicting in understanding how big stable versus like most financial instruments are going to grow very conflicted. But what I argue is because they drive capital. So you have a market recognition, so you have the traditional finance building a bridge with a financial instrument called ETF in the crypto world. So effectively you have a capital flow. So that one is interesting for us because we have trust and we have future capital coming in. But I don't think they're going to affect what we do in terms of technology and designing of new product that much. It's just a capital consideration.
Corporate Strategy and Market Integration
Then the second one, and this one became very clear. Like super clear when I went to London and I. And I somehow got invited to the Goldman Sachs digital asset event, is if you go back corporate strategy. It was relatively simple. The principle, like you can grow a business in basically two directions. Number one is increasing market share and that's what is called horizontal integration, which means, I don't know, I do soft drinks and Coca Cola, I'm gonna buy all the other brands because I want to be the only soft drink provider when someone walks into the supermarket. So it's monopoly size of market. That's the play. But at some point, the bigger you are, the more you somehow have to look out to optimize the way that you deliver the product to market. And that's when vertical integration, which is value chain integration, comes into the picture. Which means that you start looking at distribution cost or you start looking at warehousing, you start looking at, I mean, all this stuff that is happening before someone is going to buy the soft drink. And that becomes the only way that you have to optimize cost and profit. Profits, right.
The Financial Perspective on Integration
Because it's not just enough to grow on the product offering. And if you apply the same principle to finance, you're basically arguing, let's assume that I'm a real estate investor. So I run an asset manager on real estate. I have a portfolio of a few billions and I have like cost, which basically represent ten to 15, in certain cases even 20% of my assets. Right. It's a big number. So the second question is either I'm going to keep on growing in assets or either at some point I find a way to optimize my value chain, to optimize the cost of the assets. And blockchain and digital assets are very much in this topic within banks. So the idea is if my assets is my shares, is whatever I've been packaging until today sits in a digital asset, it's going to be a lot easier when I exchange ownership or when I do compliance, or when I do settlements or when I sell something and I buy something else within that transactional value. The fact that I have a digital asset and not paperwork and not traditional, if you want legacy tools.
Cost Optimization through Digital Assets
So it's basically as the opportunity to bring down the 15%, down to maybe five, six, seven, so on big numbers, that one is a very big number. So that's where the interest. Right. But the complication, see it is that what I saw at Goldman Sachs is a banner outside the conference that was basically launching the Goldman Sachs blockchain. So if you look at your market opportunity, you sit and wonder like, what am I going to do? Am I going to build an offering which is targeted at banks as a manager? And you argue that one is purely a technology play, right, because they have the capital, because they've been moving money for the past, I don't know, over 50 years, and they're not going to stop. Plus they have the clients as well. So effectively within the network of a Yemenite, of a merchant bank, you have whatever you need to prove the market case. So that one, for me, it's not really crypto play. It's very much technology play.
Technology vs. Decentralization
It's not about decentralizing, it's about optimizing. So it's a completely different approach. If you go in that direction, you might be successful from a business perspective, but it's going to be very hard that you can be successful on a token perspective. So that's basically the third opportunity. That is how the crypto world is today, interacting with the real economy. Right. And that's where my conflict, if you want, with stablecoin, comes into the picture. Stablecoin today are collecting $1 to give you one token regulation. If you look at the Mecca as well, regulation is basically, how do you say, don't get. The word is refusing is basically not allowing stablecoin to distribute yield.
Regulatory Concerns and Market Dynamics
So what's going to happen basically USDT or USDC, they have, I don't know, billions in reserve, which get, in most of the cases invested in treasury bonds in anyway, financial instrument that provide a very big net profit at the end of the year. And they cash it for themselves because they cannot basically share all the value if in the net profits of USDT. If I don't make a mistake, it was around three, 4 billion last year, it would be a different world is three and a half billion or 90% of those money could be distributed back token holders. Right. So, and then I'm wondering why this is not going to happen. Because effectively the value chain of stable, it's more likely to be compared to the bank account.
Reflections on the Future of Stablecoins
So I mean, do I want to create a better, I don't know, bank account? Do I want to create a better deposit environment than the real world? No, I don't. That's for me, it's like a real world political economy friction. But what was the other option? I have no other option. So that's for me is the interpretation of Blackrock on the real world asset tokenization. Everything is going to be tokenized because if the assumption that the crypto market is going to grow because lots of people are going to prefer to stay in crypto, prefer to stay in web three with their wealth, with their money, like they need to have the opportunity to contribute to the real world economy, because it's not that a real world is going to disappear.
Tokenization and Real World Assets
And that's where I see if you want the music bond and assets like the one that we're trying to bring to market, basically say we're not a stable that is going to aggregate money from people and then decide where the reserves are going to go, well, we are creating a direct link between crypto and the real economy. And the next stage will be when is going to be the right time. And we, I mean, strongly believe that if you want the real adoption is going to happen every time. I'm not looking for the upside on bitcoin. So instead of going to USDC, if I go music bond, I have eight 6812 percent yield depending on the deal, is as secure as a stable, I think is like a no brainer sort of decision making.
Strategic Choices in Finance
Do I prefer to get some money to deposit mine or do I prefer to get nothing. So that's very much, I think the strategic play and the bet that we are trying, that we're trying to leverage, or I think that's how the market interpret the growth or reaward asset. So then coming to the record token, sorry, long story, but I think it makes a lot of sense to have it somehow narrated into a proper conversation because maybe it's not that clear from the docs and it's not clear from the documentation. So what we argue is that in the system, and actually we learned in quite a bit by looking into aerodrome, we argue that what you can do with blockchain is build a liquidity provision within the system.
Building the Financial Structure
That's the way that we're going to build it, which are going to have, for example, the opportunity to add liquidity to the system. So if you use the record token, if you stake your record token, you're going to get the governance of the pool. You're going to have the opportunity to add the liquidity to this economic system and benefit from any arbitrage opportunities that you have across the offering of music bond. So it's very much a financial structure that we are somehow building as a record utility. It was a long story. Was it? Yeah, it was a little long, but I think it gets the point across.
Comparing Financial Instruments
I mean, I think the, how would you compare it in the like web two space, how would you compare what MBUSD is and how it works in that space? And how would you compare then the role of record to that? I mean, in terms of financial instrument is basically a structured bond. That's it. So the way that you position it is a structured bond, instead of having shared certificate to prove the ownership and the participation on the instrument that you have talked to. So it's as simple as that, right? But then generally in the real world financial markets, they provide liquidity market make.
Rebuilding Mechanisms
There is a already a structure system that you rely on when you issue, I mean, this sort of products and what you can do in crypto is basically rebuild this mechanism within the software and making it fully decentralized for people to interact with. So this is like defy, that's basically how it works. That's the beauty. You don't reinvent the wheel. So more often you do exactly what people do in the real world. The fact that is that you have new tools provided by the blockchain technology, and you have to really understand where those new tools are going to help you optimize and incentivize and open up to new counterparties. The participation to something which is relatively more complex in the traditional world.
Substance vs. Form
So same substance, different form? Pretty much. That's always my philosophy. Is there anything else from the workshop that we had last week that you would share? I think we should. We will anyway do more content around NBUSD and how it's linked to record. But is there anything else that came up that you think would be interesting for today's call, or. No, not really is a topic. No, because effectively we haven't really, and you say, adjusted anything apart from nailing down, I think, every single detail about the action plan. So something became everything very clear and very effective.
Documentation and Updates
And this one maybe was the only point that it was not clear from the documentation since we launched. Somehow this idea of music bond. Awesome. And we will, I think, update the. And simplify the documentation over the next week or so. I know that's what Evan's working on at the moment. Then I think in terms of topics that has covered for this week's community call, I don't have any other questions from the community at the moment. So I think that's it. Apart from the thousands of partners and pipeline that we're managing together.
Handling Partnerships
Right. On which we're not going to make any names until we close the deal. So everyone is going to complain because we don't drop the alphas in the community call. Yeah, we have to save some of the alpha for, like, the actual marketing of the token, which then, of course, I'm sure everyone's very happy when that happens, because the price of record goes up. But there's no. There's no partners that I would want to use. There's no partners I'd name drop right now. No, I wouldn't say. I think that the only thing that we could argue is, I think I saw it.
Progress on Partnerships
Starting today, like, in the new, if you want music protocol finance, we introduced the ecosystem page, which somehow brings a number of local and counterparties that we've been to, like, talking, partner, discussing, and doing, like, a lot of stuff. So that's already a step, I think, on Twitter, we are starting to somehow tell a bit of a story about each of them, the narrative, who they are. So this information, they're gonna drop regularly out of social channels. So I mean, just look up and I think everything is gonna come out and that's it really. Is it, Katie?
Tokenization and Future Plans
Yeah, but then I would argue, I don't know, we got very concrete conversation in terms of music bond tokenization. As I say, I never make names or announce before until everything basically comes alive two days before going to market. But that the narrative is working very well. Songwriter option catalogs. So it's very live. We got a big case study, hopefully that is going to come as well on the AI side, which we are hoping to close very soon. So everything is moving along very well between the partnership that we are doing in web three and the closing of case study on the other side to deliver on the product, everything.
System Operations
It's right on schedule and keep on moving. There is actually one question that pops up in the chat. It's a little bit more about the MBUSD, but it's a good time to kind of go through it. The question was just understanding if we're going to use, if record holders basically use record to earn MBUSD and then that they would then stake their MBUSD to earn a yield. So the pre, the initial two statement is correct. You stake and be USDA if either you want to redeem capital and yield, or either you want to somehow take on the yield. That's basically how the system that we are designing is going to operate.
Yield and Participation Mechanisms
And the difference is that if you don't redeem and the redeem is going to have a consequence, the burning, because there's no one to one between the capital rights and the capital payment. Obviously we're going to decrease the supply as long as we pay for the supply. It's like your mortgage account, right? If you pay 1000 in the capital account and the capital account represented by token, you burn 1000 token if the relationship is one to one, depend on the UN. So MBusd, yes, you stake for the yield record token, yes, you stake.
Opportunities for Token Holders
But you don't stake to earn MBusd because there's no way that I could give you for free, for example, share of a bond. But you basically like earn your right to participate to the liquidity pool, the liquidity provision, the arbitrage, and a lot of financial, if you want, opportunities which are going to be closed for anyone else. So somehow we have basically cut out this opportunity for the token holders. Like no one else will be able to do that, only record token holders. That's, I think the utility, or how you look at utility, and I think in liquidity and arbitrage, you still have quite a bit of fees and money which always running around this sort of financial problems.
Functionality and Clarity
So they're very useful to optimize supply, they're very useful to stabilize price and on the other side, encrypt becomes a good opportunity to provide if you want extra earnings for token holders. That's basically in principle how the system works. Then we're producing all the documentation soon we're going to somehow push out an update where it's going to be a lot more clearer the way that it works. That's the principles. Awesome. I think that answered the question perfectly.
Conclusion of the Community Call
Then I think that's us for community call number three. Marco will write this into a thread and share it tomorrow so everyone can kind of go through what was discussed today. But as always, thanks Sergio, for talking us through what everyone's been working on. Cheers, guys, have a good day. Speak soon. Thanks, guys. Bye.
