Tokenomics of $BEZY
Tokenomics
Protocol Tokenomics
The following details the tokenomics of the SoundMoney protocol. You may find a deeply researched position as to why SoundMoney’s tokenomics are designed in the way they are below the section line.
Additionally, you may find a TLDR of SoundMoney’s tokenomics here:
Token Name: BEZY($BEZY)
Market. Social-fi creating the “Streaming Creator Coins,” sub-market.
Problem. Artists are unable to earn adequate royalty payments from streaming platforms like Spotify*.
Max Token Supply. 27,000,000,000
Monetary Policy. Fixed Supply
Public Token Distribution: The SoundMoney Economy has a fixed token economy of 27B tokens with a Total Treasury Supply of 27 Billion to be used to fund Creator Coins on the protocol. The token distribution is as follows
Token Native Chain: Ethereum, REZO
Initially Supported Networks: Ethereum, REZO
Vesting Schedules.
Platform: Superfluid will be used to manage token vesting for core team members, investors, and advisors.
Core Team Members. 36 month vesting period for team with linear vesting starting at the token generation event (TGE).
Investors and Advisors. Investor unlock period of 12 months with linear vesting starting at the token generation event (TGE) 0.00%, 0m Cliff, 12m Linear Monthly vesting.
Inflation Schedule. You may find here (iterating until TGE)
Token Utility.
Governance. Tokenomics by staking BEZY w/ either WETH (Staked BTC in Credit Pool) or tBTC (Staked BTC by LPs) in an 80/20 ratio
Insurance. Staking BEZY to defend protocol from events.
Liquidity. Provides secondary market liquidity for LPs looking to sell discounted BTC/USDT for BEZY rather than wait for their yields to mature (Protocol V2).
Discount. Holding BEZY will reduce the premium for = 0.5%.
Governance. No Governance in Alpha & Beta Versions, Hybridized (On-Chain & Off) Governance in V1+
Resource Allocation
The following details SoundMoney’s resource allocation strategy:
Token Distribution
SoundMoney leverages an TCP-backed, fixed-supply monetary strategy with an initial token supply of 27B BEZY tokens. Here’s a summary of SoundMoney’s tokeneconomics:
Initial Token Supply. T10 Lab will mint a maximum supply of 27B $BEZY tokens, the distribution of which is further described in Table 1.0 below.
TCP**-Backed.** Starting in V2, BEZY tokens are increasingly backed by BEZY Tokens as Hedge LPs prematurely exit their liquidity positions via the protocol’s TCP TBC. The TCP TBC bonds the secondary market liquidity of $BEZY with $tBTC so that LPs can trade near-term liquidity with the protocol itself.
Below, Table 1.0 displays the protocol’s proposed token distribution strategy:
Inflation ScheduleIt is crucial to maintain a balanced inflation schedule for (inflation, in this case, is the number of tokens entering the circulating supply from a fixed, total supply), particularly in light of the planned unlock schedule for the core team and investors, coupled with the substantial liquidity influx expected from the airdrop. Experience has shown that when airdrops are employed, the price of the token typically experiences a significant drop post-airdrop. This trend is largely attributed to the behavior of most airdrop recipients, who tend to quickly sell off their tokens in the secondary market. Therefore, careful planning and strategic measures are essential to mitigate such market impacts and sustain the token's value. Most importantly, we must ensure the following:
👌🏾 Token Emission Growth < Token Demand Growth | Token Price 👆
You may find SoundMoney’s inflation (token emissions) schedule below:
To minimize token price impact from the airdrop and initialization of investor/team linear vesting at SoundMoney’s TGE in late Q4 2024, we (1) enforce eligibility vesting, and (2) we limit token redemption to a 60 day period. Additionally, to minimize mass-sell off during the coming days of the airdrop for those that do redeem the token, we will announce a Boosted Staking Program the day of the airdrop that will favor those that lock up their BEZY tokens for 3+ months, further distributing initial sell-offs over the following quarter (in our emissions schedule, we assume 10% of airdrop participants stake their tokens).
Overall, here’s the TLDR on BEZY’s Inflation Schedule:
Summary Metrics
Metric
Year 1 Inflation Rate
30.34%
Year 2 Inflation Rate
9.14%
Year 3 Inflation Rate
8.38%
Year 4 Inflation Rate
2.27%
Year 5+ Inflation Rate
2.27%
Token Vesting Schedules
Vesting tokens for core team members, advisors, and investors will be managed using the Superfluid token management platform. The following vesting schedules apply to core team members (i.e., T10 Labs Corp. full-time employees and advisors) and investors respectively:
Core Team Members. 36 month vesting period for team with linear vesting starting at the token generation event (TGE).
Investors and Advisors. Investor unlock period of 12 months with linear vesting starting at the token generation event (TGE). Investments are 1:1 between the SAFE and token warrant.
Revenue Model
You may find a visual representation of SoundMoney’s revenue flows below:
https://sideways-ball-ee8.notion.site/Tokenomics-a10c13e491b243e5ad70d3e963384ef2?pvs=4
Additionally, you may find a description of SoundMoney’s revenue model below:
Policy Framework
Market. Big Management, creating the “Streaming Token” sub-market.
Problem. Investors do not have the resources nor sophistication to automatically their market bids, and those that do expose themselves to institutional (i.e., centralized bids) of exchanges.
Governance. No Governance in Alpha & Beta Versions, Hybridized (On-Chain & Off) Governance in V1+
International Compliance & Regulatory Policies. The SoundMoney Protocol ecosystem and token sale will be managed by the Foundation, a BVI Foundation. Provided that the purpose of the protocol is to minimize market losses, rather than generate yield for end-users, the Foundation has received a memorandum of advice that it will not be required to be licensed or registered in the Canary Islands under the SIB Act.
Supply & Demand Dynamics
BEZY has a fixed supply and demand dynamic. The token utility of $BEZY is detailed below:
The token utility of $BEZY is detailed below:
Value System
The SoundMoney protocol carries an ethos of progressive decentralization, where governance of the protocol is gradually decentralized as the security and community management mechanisms are put in place to adequately ensure the sustained prosperity of the protocol and its community.
Thus, the protocol will progress through the following stages:
Stage I - Alpha/Beta → Algo-lists.
Stage II - V1 → AUDIO LABEL DAO.
Stage III - V2+ → Content Wallet.
You may reference our development roadmap to learn more. Additionally, you may find more information about BEZY's token system below:
Economic Indicators & Metrics
All economic indicators and metrics are null until the token launch. However, we have listed the following metrics as goals to achieve going into our token sale. Note, that these goals were made under the assumption that the average marketing-to-token purchase conversion rate in the Web3 ecosystem is 1% (whereas the average product purchase conversion rate across industries is 2.35%).
Token Distribution (BEZY)
Social Token Liquidity Overview
SoundMoney Protocol Stakeholders & Actions
Incentive Structures & Revenue Model
The following clearly identifies the protocol’s key stakeholders and the core incentives used to motivate each stakeholder to participate within the protocol. This chart explains the revenue structure of the protocol and it's users.
Revenue Earner
Description
Fee
Distribution
DEX Fee (DF)
The protocol assesses a fee for every swap on its Social Token DEX. The minimum amount that can be swapped is $1 USD The minimum amount is noted as “Swap Minimum” and is update-able via a protocol vote by the DAO.
0.5%
60% goes to protocol’s Reserve Treasury
20% goes to protocol’s Engagement Rewards Treasury
20% goes to protocol’s Content Rewards Treasury
Content Sale Fee (CSF)
The protocol assess as fee for every sale of a content NFT
2.5%
Item Sale Fee (ISF)
The protocol assess a fee for every sale of an item NFT
2.5%
Social Token Minting Fee (STMF)
The protocol assess a one-time fee for social token minted on the protocol
3% of Token Supply
80% goes to protocol’s Reserve Treasury
10% goes to protocol’s Engagement Rewards Treasury 10% goes to protocol’s Content Rewards Treasury
Content Minting Fee (CMF)
The protocol assess a very small fee for every Content NFT minted to prevent spamming the network
0.001 $BEZY
100% goes to protocol’s Content Rewards Treasury
Item Minting Fee (IMF)
The protocol assess a very small fee for every item minted to prevent spamming the network
0.01 $BEZY
100% goes to protocol’s Reserve Treasury
$BEZY guest Pass Holder Tax
The protocol taxes the content and engagement of accounts that hold the $BEZY Guest Pass for 1 BEZY Epoch from the time that they receive it. Of course, if the same account holds a $BEZY VIP Pass, the tax is waived.
2.5% for 1 BEZY Epoch from time of receipt
50% goes to protocol’s Reserve Treasury
50% goes to the inviter IF the new account passes social stake conditions
Additional Reading: SoundMoney Social Protocol Revenue Flywheels
BEZY release schedule Last update: 16 July 2024
At TGE in 2024, there were 27,000,000,000 BEZY tokens minted, from which:
2,999,015,278 were allocated to the Public Contributors in exchange of ETH; with no lock-up period
471,505,389 were allocated to Status Genesis Token holders; with no lock-up period.
1,360,937,157 were allocated to Status Core Developers; with a 24 month lock-up period and a 6 months cliff.
1,973,412,351 were allocated to the Community Reserve; with a 12 month lock-up period.
After 12 months since the TGE, the Community Reserve has become fully available and after 24 months, the Status Core Developers’ SNT has also become fully available to the Status Core Developers, Founders and Team.
After Status Core Developers SNT became fully available, these have been used to pay for project development costs.
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