Token Economics
The Stock Licensing Protocol Token will have a fixed supply of one billion tokens. There will be two primary uses for the token:
- Required to create every Stock Licensing NFT
- Participate in the Stock Licensing Protocol DAO
However, future token uses may be added to the protocol as it matures. Additional possible uses for the token include:
- Using tokens to increase search results for a Stock Licensing NFT
- Use in the decentralized DMCA take down and spam reporting process
Token Distribution
The initial planned token distribution is listed below however this may change before the token contract is deployed without notice.
20% - Development Team and Initial Investors
20% - Early Creative Contributors
20% - Incentives and marketing for Initial Buyers
15% - Development grants, partnerships and bounties
15% - DAO treasury and emergency fund
10% - Liquidity Pools and LP Mining
Development Team and Initial Investors
The initial development of the protocol will be financed with one fifth of the tokens. The development team will be allocated tokens and sales of a small portion of the tokens to initial investors will raise funds to increase the speed of development and pay for other fees related to releasing the first version of the protocol.
Early Creative Contributors
Creators will be incentivized to upload their pre-existing stock assets to the protocol with free Stock Licensing Protocol tokens. A process will be developed to incentivize creators to use the tokens to mint Stock Licensing NFT with their free tokens rather than hold for future gains or sell immediately. This will also control access to who can mint Stock Licensing NFTs while the collection is being populated to reduce spam and copyright infringement.
Incentives and Marketing for Initial Buyers
Buyers will also be incentivized to purchase Non-Fungible Licenses with tokens. One fifth of the tokens will be used to market to stock buyers and provide incentives for buyers to use the protocol.
An example of how these tokens will be used is to buy License Credits with the tokens, essentially giving an initial set of free stock licenses to buyers similar to how stock agencies provide free licenses for joining their platforms. However, when the License Credit is redeemed for a license, the creator will receive the Stock Licensing Protocol Tokens. The result of this is creators of the most marketable stock assets will accumulate a larger percentage of stock licensing protocol tokens giving them a larger say in the governance of the protocol.
Development Grants, Partnerships and Bounties
The Stock Licensing Protocol can only be successful with a strong development community. A portion of the tokens will be reserved for rewarding and incentivizing participation in the development and growth of the community. This would include engaging and incentivizing existing Web 2.0 companies and applications to integrate with the Stock Licensing Protocol.
DAO Treasury and Emergency Fund
The Stock Licensing Protocol DAO will receive tokens for initial funding. This will create the initial treasury which will be directed by protocol improvement proposals. It is expected that this treasury with the protocol fees will be used to maintain the protocol after the initial development has been completed.
Liquidity Pools and LP Mining
Initially tokens will be distributed to creators and license buyers for free to incentivize early use of the protocol. However, after the initial distribution Stock Licensing Protocol tokens will need to be purchased by creators to mint Stock Licensing NFTs. These tokens will be available for purchase on decentralized exchanges. A portion of tokens will be set aside for liquidity pools and to incentivize token owners to provide liquidity to these pools.
Token Release Schedule
The initial planned token release schedule is outlined below but this may change before the token contract is deployed without notice.
Development Team and Initial Investors - 2 years monthly even distribution
Early Creative Contributors - 2 years monthly even distribution
Incentives and Marketing for Initial Buyers - 4 years monthly even distribution
Development Grants, Partnerships and Bounties - 4 years monthly even distribution
DAO Treasury and Emergency Fund - 4 years monthly even distribution
Liquidity Pools and LP Mining - Released at listing decentralized listing
Assuming the decentralized listing is completed after 12 months the release schedule will look like the following.
