What is Loozr?
Crypto for music communities.
Through Loozr, fans can actively and openly support their favourite or emerging artists and brands, facilitating collaborative success on the go.
Leveraging a no-code automated smart contract launchpad and a user-friendly interface, creators can tokenize their brand, music, content, and potential, allowing fans to purchase, trade, sell, and promote these tokens directly on the blockchain in real-time.
What Does This Mean?
Like Spotify or SoundCloud, Loozr is a music streaming platform accessible to all. However, creators, emerging musicians, and labels have the ability to launch their own Song and Profile/Brand tokens directly on the blockchain.
Loozr is a music streaming platform that offers creators the opportunity to tokenize not only their name and brand, but also their music.
This allows fans to buy, sell, trade, and promote these tokens on the blockchain in real-time, while also splitting streaming earnings with token holders. Similar to Spotify and TikTok, Loozr is accessible to everyone, but it offers producers, DJs, celebrities, independent musicians, and labels the chance to turn their potential, personalities, and content into a digital currency or asset on the blockchain that can be bought and invested in.
Just like Bitcoin, Ethereum, NEAR, and other tokens, these coins can be bought, sold, and traded on the blockchain, similar to stocks. Simply by creating a profile or uploading a song, users can launch their own coin, and the value of each coin is dependent on the rate at which people buy or sell it.
By holding onto a potential coin until its peak, buyers are likely to see an increase in its value, while others can make money by trading the dips and rises of these coins.
Additionally, holders of an artist's Song token earn money whenever that artist's song is streamed.
Buying Loozr Coin ($LZR)
Loozr platform provides a native digital currency known as LZR, which is utilized to facilitate various activities such as music streaming, purchasing music tokens, and creator/artist tokens.
The platform offers a decentralized cross-chain swap mechanism, enabling users to buy LZR with NEAR, USD, etc in minutes through the "Buy LZR" page. The supply of LZR is limited to about 100,000 million.
What are Music Coins?
Every music track (asset) uploaded on the Loozr platform by a verified artist or creator is tokenized and traded as a coin on the blockchain. These coins are known as "music coins" and can be bought and sold in a similar way to popular cryptocurrencies such as Bitcoin, Ethereum, or NEAR.
The value of each music coin is subject to fluctuations based on the principles of supply and demand, whereby an increase in purchases causes the value to rise, while a surge in sales causes it to drop.
For instance, a proportion of the proceeds obtained from the sale of Adele's music token $Hello is earmarked as a "Founder Reward" for herself, while the rest of the earnings are disbursed to her music token holders/fans.
Moreover, as an investor, you can receive a proportionate share of the streaming revenue in real-time, which is credited to your Loozr wallet and can be withdrawn anytime.
What are Artist Coins?
On the Loozr platform, every artist and creator has their own coin that can be bought and sold by anyone. These coins are commonly referred to as "creator coins," and creating an artist profile entitles you to have your own coin. The value of each coin fluctuates based on supply and demand; it rises when more people purchase it and drops when more people sell it.
If you wish to purchase someone's coin, you can do so by accessing their profile and selecting the "Buy" option.
Adele establishes a music profile and tokenizes it, thereby introducing her unique profile token name and launching her own coin. She has the option to either set her Founder Reward or maintain the platform's default rate of 10%.
Suppose a person purchases 100 Loozr coins of Adele's Profile token, 10 Loozr coins will be transferred to Adele's wallet instead of the buyer's wallet.
Fans who have faith in an artist's talent can buy their token and gain financial benefits when the artist reaches their full potential. Traders can also take advantage of the price fluctuations by buying and selling these tokens.
The Supply Curve
Similar to creator coins, music coins are also naturally scarce with typically fewer than 100 to 1,500 coins in existence for each music profile. As more people buy a music profile's coin, the coin's price rises at an increasingly faster rate. This ultimately means that it would cost billions of dollars to mint even a single additional coin.
The formula or "curve" for determining the price of a music coin is the same as that used for creator coins. Although music coins are usually bought and sold with the Loozr cryptocurrency, a dollar version of the formula is available for ease of calculation.
where:
C = current circulating supply of creator or music coins
R = reserve ratio (as a percentage)
S = number of LZR in the creator coin's reserve
B = number of creator coins originally minted
Note that the reserve ratio is set by the creator when they create their profile, and it represents the percentage of the creator coin's market cap that is held in reserve (i.e. locked up in the creator's wallet). As more creator coins are sold, the price of the coin goes up and the reserve ratio increases. This makes it more expensive to mint new creator coins, which helps to keep the supply of coins scarce.
When a music profile is created, there are initially no coins in existence, resulting in a zero price. If someone wishes to purchase coins from the profile, the profile will create them out of thin air and sell them according to the price curve of the Loozr platform. As more coins are purchased, the price of the coin continues to increase. The money used to buy the coins becomes "locked" in the profile in exchange for the coins. Conversely, if someone wants to sell coins, the profile will purchase them according to the curve using the money locked from previous buys.
Buying creates coins and pushes the price up, while selling destroys coins and pushes the price down, thus unlocking money from the profile. This process is referred to as an "automated market-maker" and is the same concept that powers protocols like Uniswap and Bancor.
Founder Rewards
Each profile and music on the platform allows the creator to keep a portion of the coins created as a "founder reward." For instance, if a creator sets their founder reward percentage to 10%, and someone purchases 100 LZR of their coin, 10 LZR would be used to buy the creator's coin, and those coins would go to the creator's wallet instead of the purchaser's.
However, we believe that a better way for creators to have a stake in the success of their coin is to purchase their coin upfront when they create their profile and then set their founder reward percentage to zero. This approach works because the coins are least expensive at the beginning of the curve and it decreases the friction of future purchases of their coin. Nonetheless, having a founder reward percentage of 10% is a reasonable default that ensures creators will maintain a portion of their coin even if they take no action.
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