LABEL Foundation is a P2P incubating and NFT infrastructure built on Ethereum and BNB chain (formerly BSC). It aims to establish a profit-sharing ecosystem to help content creators to monetize their IP rights without the burden of intermediations. LBL is the utility and governance token of the project.
LABEL Foundation is backed by Clesson Co., Ltd., a Korean music education company with about 200 instructors. Clesson also operates a MOOC platform in the Entertainment & Media field called OPENTRACK. And LABEL Foundation will perform as a decentralization transition plan for OPENTRACK empowering the instructors to monetize their contents & IP rights.
To empower artists and content creators on OPENTRACK and other platforms digitalizing and funding their work and IP rights, LABEL Foundation will provide them with a DAO governed P2P incubating system and an NFT market.
A producer can initiate the crowdfunding (voting) process on the LABEL community once he/she creates a new project. And then, the community holders, namely LBL holders, will stake LBL tokens to vote for the project. Once a certain amount of LBL is reached, the staked tokens will be sent to the producer as start-up capital. In exchange, the voters (investors) will receive an ERC-1155 NFT that represents a share of the project.
Once the content is created, the producer will upload it onto the affiliated platforms, such as OPENTRACK, where producers can earn profits. And the revenue generated by the content will be automatically contributed to the shareholders (including producers, voters, and other contributors) according to their NFT Equity.
The NFT Market is where users can transact the NFTs produced on the LABEL Foundation. And there are currently two types of NFT assets NFT Equity for content and NFT items.
The NFT Equity represents the ownership of investors who participate in Incubating (shares of Copyright / IP). And users who did not participate in the process can also earn a share of NFT sales revenues by purchasing NFT Equity in the market.
As for NFT items, they are digital assets generated by artists or creators, such as limited edition albums. The items can be minted and traded in the marketplace.
LBL token is a utility and governance token that is primarily oriented to drive the growth on the LABEL platform and is a critical unit to integrate all its features and to provide decision-making ability and control over the decentralized platform to the stakeholders.
The LBL token is mainly utilized as a payment, governance, and staking unit. LBL Holders are entitled to the additional rewards, provided they engage in staking their LBLs in the DAO for the 3rd phase of the product, which also enables the holders to participate in the major governance voting processes, and also provides access to the DAO Fund to claim the accumulated transaction fees in the treasury.
As with most of the tokens, users can use LBL tokens as a means of payment in the whole LABEL ecosystem.
Consumers can use LBL tokens as a payment fee that is settled once a month to the owner of the beneficiary rights of the NFT of the content. Some of these tokens will then be accumulated in the DAO Funds to cover platform fees. The commission rate accumulated in the DAO Funds can be changed by governance. In a later stage when the platform is activated, more music equipment and instruments will be sold too through the LABEL platform.
LBL holders will be able to stake their tokens starting from 2023 to participate in the LABEL governance voting processes. In the meantime, special offers, promotions, and bonus opportunities will also be offered exclusively to LBL token holders. Staked LBL tokens are will be locked and cannot be transferred or sold at the time of staking. The taking rewards will be adjusted dynamically to create a sustainable token ecosystem.
DAO funds are collected by a certain portion of lecture content fees, lecture revenue distribution fees, NFT creation fees, and 100% of NFT transaction fees. The fund will first be managed by the LBL token stakers can directly manage the funds until it’s decentralized.