At the heart of the platform, are coins for different songs by various artists, in the form of ERC20 tokens on the Polygon blockchain. Fans can buy and sell these coins using MATIC on the Polygon testnet and enjoy special rewards as holders of these coins.
The trading of these coins is based on AMM using liquidity pools on UniswapV3. The prices of the song coins change based on 1. user supply and demand 2. song popularity (the Genius API is used to add more liquidity to the pools for every 100K views the song gets, via a cron script that runs at fixed intervals), thus creating 2-factor price movement. Fans can swap the song coins for MATIC on the platform itself using embedded Uniswap widgets.
As a holder of these coins, every fan is entitled to different privileges based on the amount of coins they hold. These privileges are split into 6 different tiers, ranging from Iron to Diamond. Each tier is progressively unlocked based on the amount of song coins a user holds, and the reward keeps on increasing in value. This set-in-stone tier system leaves no space for the artists to exploit the fans.
Iron: 10 coins - mint a personalized artist NFT.
Bronze: 25 coins - mint free NFT ticket to artist’s next concert.
Silver: 50 coins - access to one unreleased song from the artist.
Gold: 100 coins - access to an exclusive livestream by the artist.
Platinum: 250 coins - access to chat messaging with the artist.
Diamond: 500 coins - 15 minute video call with the artist.
Besides these privileges, coin holders can also engage in on-chain discussions to interact with each other in a fully decentralised manner.
Every artist is initially allocated with 20 coins of each of their songs. They can put these coins into the liquidity pool at any point and trade them for MATIC depending on the current spot price of these coins. These coins are stored in the contract when the coins are first minted and are transferred to the artist after a verification process.