Bluetail Tokenomics in Plain English
How Bluetail helps creators build careers while sustaining itself.
Creator makes a song/DJ playlist/cat gif, mints it as an NFT, and stakes it in Bluetail.
If the NFT is popular enough, it earns $APE collateral.
Creator borrows against that $APE collateral to make a music video for the song on the staked NFT.
While the loan is out, Bluetail gets IP rights in the staked NFT and a publishing split in the song.
Bluetail earns licensing fees on NFT/song and splits the money with the creator in real time.
In the meantime, the creator uses the Bluetail loan to shoot the aforementioned music video.
Creator puts the music video on YouTube & TikTok and also mints it as NFT to stake in Bluetail.
Creator uses the YouTok money (and a Starbucks gig) to pay back the Bluetail loan.
Bluetail gives IP rights back to the creator immediately on loan payback.
Creator is now earning on a song and a video, and Bluetail earned loan interest and licensing fees.
For Investors:
Investors may invest in Bluetali at the protocol level or the artist level, or both.
Protocol level — Investors collect a small percentage of interest on all loans and revenue from licensing deals [low risk, lower rewards].
Artist level — Investors collect a larger percentage of interest on loans and licensing revenue from artist account(s) he invests in only [higher risk, higher rewards].
Of course it isn't that easy; the world is full of bad actors — artists that don't want to pay back loans; hackers looking to game the system, etc. Read on to see how Bluetail protects itself while still serving the artist community.
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