> For the complete documentation index, see [llms.txt](https://alucard0x.gitbook.io/bluetail/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://alucard0x.gitbook.io/bluetail/tokenomics/operational-tokenomics.md).

# Operational Tokenomics

More agile tokenomics meant to preserve the day-to-day sustainability of Bluetail

### Real-Time Artist Signings

Bluetail rewards the top artists on the platform by flowing collateral to those artists based on engagement ("[signed artist](/bluetail/bluetail/key-terms-and-specifications.md)"). The number of artists Bluetail signs = the maximum number of artists that Bluetail can provide with a max loan offer of $8,333 per month at 33% LTV. 

(For reference, at $4 $APE, every 1,000,000 $APE yielding 30% APR signs 3 artists in [Stage 2 Funding mode](/bluetail/tokenomics/core-tokenomics.md#stage-2-funding-building-rewards).)

Each signed artist claims the percentage of the rewards pool that its engagement represents.

Artists may receive investment from outside sources as collateral in their siloed lend/borrow pool regardless of being signed to Bluetail or driving engagement to its streaming platform.

Bluetail will never sign more artists than its funding allows.

### IP

The famous "collateral" switch on defi platforms is turned on and off to give or take permission away from Bluetail to use an artist's IP. If a loan is out, the switch must be in the on position.

Bluetail takes 50% of all revenue it generates while artist IP is under its control (a loan is out or user has the "collateral" switch to "on."

Unsigned artists may earn real-time distributions of income for licensing, syncing, and other publishing activities regardless of the engagement they drive on the Bluetail streaming platform.

### 10X Value Build

Bluetail strives to build collateral value for artists at a minimum 10X the current Spotify streaming rate, a pace that will allow for cashouts of 2X and loans of 3.33-6X the capital Spotify offers.

(Current [Spotify streaming rate](https://launchkit.io/spotify-pay-per-stream/) — Between $1310 and $4366 per 1 million streams, or $0.00131 and $0.004366 per stream)

### Slashing Buyouts

If a user unstakes the NFT with collateral, 20% of the collateral attached to it goes to the artist, 80% flows back into Bluetail staking/yield farms. Sometimes Bluetail may offer higher breakage percentages if it needs more capital to flow back into the staking/yield farms to fund pools.

### $APE Holders = VIP

Artists that are also top $APE holders get

* higher max LTV %
* better terms on loan payback
* premium visibility on site