The term DAO mean decentralized autonomous organization. This is a fancy way of saying a digital company on a blockchain that is controlled by members similar to the way a traditional LLC works. Except the treasury and funds are all transparent and viewable on our DAO dashboard. This keeps the company accountable to the entire community.
Blocktunes DAO is made up of DEFI backed DAO smart contracts built on Binance Smart Chain (BSC) using the XDAO platform. The DAO treasury is managed by a governance token, BTD, which is held by the team and acts as a multi signature account ensuring the funds are safe and that nobody can do illicit things with company funds.
Then there is an investment LP token, bTUNES. This token is given to artists when they use our BlockTunes release submission service and is invested into our DAO. Holding these tokens are how artists and fans that want to invest get paid their share of the DAO earnings. Oh yeah, did we mention that fans can invest in the DAO and earn a portion of the earnings monthly? Investors can track the performance of the DAO in the DAO Dashboard tab and on Ape Board or DeBank.
Our fund earns income in a variety of ways:
Investment in bTUNES tokens from the site or directly from the DAO Dashboard
Artist submission fees for the BlockTunes Release Submission Service
BlockTunes 5% commission from NFT sales and resells on the various NFT marketplaces
BlockTunes 5% commission from music and 50% commission merchandise sales
BlockTunes 5% commission from streams and revenue from external distribution
Automatic Market Making – otherwise know as yield farming on Pancakeswap earning CAKE tokens
Lending using the Venus.io Protocol which earns interest on the assets in collateral as well as their XVS token. This fund is also used as a company credit line so we can leverage funds to build the AMM yield farms in Pancakeswap. The funds that are in form of Venus tokens can be paid out to people who burn their bTUNES tokens.
bTUNES LP Investment Token
bTUNES token is our LP Investment token that will add value to the BlockTunes DAO. This will be your piece to the investment that will help build a new future for the music industry. This token does not give voting rights in the treasury, but builds the value in our company which will be put to work to earn rewards to pay out to artists and investors. Holding the bTUNES token will get you a portion of our dividend payouts from the DAO as well as give future governance voting privileges for the platform.
bTUNES tokens can be purchased for BUSD directly from our DAO Dashboard. bTUNES tokens are only created when they are purchased directly from the DAO.
To sell your investment tokens, you will go to the DAO dashboard and go to the bottom where it says ‘Burn LP’. You will then select the assets in the DAO you want to receive when you burn your bTUNES tokens.
We will be mainly using the Pancakeswap Finance DEFI platform on BSC for our main yield farm as well as using the Venus protocol to build a credit reserve fund. We use this credit reserve to pay for operational and marketing expenses, or to build more value in our farms. We take a loan against the assets in the Venus protocol and then we will pay it back with 40% of the farming rewards each month. 10% will go to BlockTunes to cover expenses, and the other 50% is paid out in dividends.
BTD governance tokens are held by the development team, the advisory board, and other early investors. These tokens are the primary governance token for the DAO treasury. Future tokens will be distributed to any new advisors or company employees. We need to keep this group small so that transactions can be pushed through without the need for every token holder participating. Currently, during initial setup of the DAO, the voting quorum is set to 21%. This can be changed later via DAO vote, but is needed to be able to push through transactions in the development stages of the project.
bTUNES holders will be able to vote on proposals in the future. These votes will be off chain, but will dictate major moves made by the DAO. All bTUNES holders will have the ability to submit a proposal for a fee. The fee will be used to prevent spam proposals and all fees will be fed directly to the DAO.
Dividends for bTUNES Holders
COMING Q4 2022
We are currently working on a dividend structure for the DAO. The current plan is to pay out 40% of the farming rewards every month to bTUNES token holders. 5% to our advisory board, and 5% to our A&R team NFT holders, these are the people that find awesome artists that come and sign up and use our BlockTunes release services! Our A&R team will receive an NFT for each artist that signs up and uses our service.
Dividends will be paid out in bHBD. All of the income from sales, streaming, and submissions is all put to work in the yield farms and lending lines which passively builds value to the DAO.
See the BSC BlockTunes DAO contract on bscscan
BlockTunes DAO LP Investment Token Contracts
BlockTunes LP investment Token on BSC: