Music-Sharing Firm Shines New Details on Twin Crypto Tokens
In the latest cryptocurrency news, the music-focused blockchain startup Audius has finally revealed details about how its network will start operating as soon as it launches roughly a year. The news came soon after the company reportedly closed a $5.5 million funding round.
A Decentralized Platform
As previously reported, the startup is creating a decentralized platform aimed at providing artists the ability to take back control of their intellectual property’s distribution, while connecting more easily with fans. Now, Audius is taking the next step in the process with the publication of its white paper.
Co-founder Roneil Rumberg revealed in an email that he believes the company distinguishes itself from existing platforms by not depending on any centralized infrastructure. He was quoted saying:
“We strongly believe in the value of a fully transparent, decentralized and community-driven effort to share the world’s audio content.”
The startup plans to release two tokens: called “loud” and “audius.” The former will be used for conducting transactions while the latter will act as governance token. Both creators and listeners can use loud tokens to “interact with the protocol,” according to the paper.
Two Tokens System
“[Audius will be] used by service providers to participate in staking protocols and earn proceeds from the minting of loud tokens,” it continues. “This separates the mechanism for price-stable value transfer (loud) from the mechanism for value capture and accrual (audius), better serving the needs of users of each token.”
Under the proposed scheme, creators who receive loud tokens would be “compensated in proportion to how much value they create.” Meanwhile, users who specifically contribute to the protocol itself would receive governance tokens
The startup also wants to ensure that the protocol is accessible to all, the white paper notes, provided users follow the protocol’s rules. Audius intends to maintain a stable price for the loud token algorithmically, and tokens will be created or burned as needed to ensure that there is a consistent supply and demand, according to the document.
In addition to the two tokens, the protocol is underpinned by several components, including a decentralized storage protocol, an upload manager, a payment and revenue sharing protocol, and a “discovery protocol” to help listeners find new music.
“Our architecture includes novel work around how decentralized content discovery can work, including a cryptoeconomic mechanism for enforcing honest behavior of services indexing content. Discovery services index the Audius blockchain and are paid by other network participants to query this dataset,” Rumberg explained.