Forget STO - Tokenize Intellectual Property (Machi X)

Boxmining

3.2K views 129 6 years ago

Description

Recently there is a lot of talk about ways to give tokens more value (such as STOs). What is overlooked is the tokenizing of Intellectual Property - like a particular song or film. This directly gives...

Recently there is a lot of talk about ways to give tokens more value (such as STOs). What is overlooked is the tokenizing of Intellectual Property - like a particular song or film. This directly gives value to a token and allows it to capture the long-term value of the song or movie. Machi X is currently being built as an exchange to trade tokenized IP rights. Machi X (MCX) is not an ICO - rather they have completed their private sale and will distribute tokens via airdrop to Mithril holders. Website: https://machix.com/en/ Machi X Telegram: https://t.me/Machixofficial More about Machi X: https://www.asiacryptotoday.com/ Full disclosure: I own Mithril. 👑Recommended Exchange - Binance: https://goo.gl/joe55C 🔒Hardware Wallet: https://www.ledgerwallet.com/r/428b 📲Mobile Wallet: https://enjinwallet.io/ Brave Browser: https://brave.com/box831 #Bitcoin #Ethereum #Cryptocurrency #Crypto #Altcoins ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● Telegram groups: Telegram Discussion Group: https://t.me/boxminingChannel Telegram Announcements: https://t.me/boxminingChannel ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● ♨️Social: Steemit: https://steemit.com/@boxmining Twitter: https://twitter.com/boxmining Facebook: https://www.facebook.com/boxmining ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● I'm not a professional financial adviser and you should always do your own research. I may hold the cryptocurrencies talked about in the video. ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●

AI Analysis

This video dives into a fascinating concept: tokenizing intellectual property (IP), specifically music, as a way to give tokens real value. The focus is on Machi X, a platform being built to trade these tokenized IP rights. It's a fresh take on value creation in crypto, standing in stark contrast to Security Token Offerings (STOs), which are seen as too bogged down by regulation. The core idea is to empower artists, solve long-standing issues in the music industry, and create a deeper connection between fans and their favorite content.

Here’s a breakdown of the key topics and technical details discussed:

* Beyond STOs – A New Path for Token Value:
* There's a lot of talk about how to make tokens more valuable, with STOs (Security Token Offerings) being a popular buzzword.
* However, the presenter is pretty bearish on STOs due to the heavy regulations involved, suggesting a need for more "out of the box" thinking.
* IP tokenization, specifically for assets like songs or films, is presented as an alternative that directly imbues a token with value and allows it to capture long-term asset value.

* What is IP Tokenization?
* Instead of tokenizing a stock or a company, IP tokenization involves creating a token that represents ownership of a specific intellectual property, like a particular song from an artist.
* This allows artists to raise money by selling a portion of the rights to their work.

* Solving Pain Points in the Music Industry:
* Artists today face significant problems with transparency and efficiency in royalty payments.
* A striking study from Berklee College of Music in 2015 estimated that 20% to 50% of all music royalties are not received by the rightful owners.
* Another study estimated that for each song, there are roughly 900,000 different royalty streams, which highlights why such a large percentage of royalties might not be paid out properly.
* Machi X aims to solve these transparency and efficiency issues, along with disintermediating middlemen who often take a cut.
* The goal is to ensure musicians can continue their craft and earn a fair and equitable wage efficiently.

* Reviving the Patron Model:
* The concept isn't entirely new; historically, artists like Beethoven had patrons who supported their work.
* Machi X is bringing back this patron model in a tokenized setting, but with a modern twist: patrons can now share in the economic success of their artists.
* Imagine owning a piece of a Taylor Swift song – not only do you feel a deeper connection, but you also receive economic value every time the song plays, which incentivizes you to promote it.

* Enhancing Fan Engagement and Community:
* IP tokenization supercharges fan clubs by adding a social and economic aspect.
* If you own a piece of a song's IP, you're not just a superfan; you become an active participant, motivated to promote that music.
* The platform will feature a unique community system where users can only participate if they own the specific token for that IP.
* Admins of these communities will be the token issuers (artists) or their affiliates, creating a direct and curated space for fan-artist interaction. This could lead to a highly engaged community helping the artist in various ways, rather than just a general "troll box."

* The Machi X Exchange:
* Machi X will function as an exchange for these tokenized IP assets, similar to any other crypto exchange like Binance, with bid and ask orders.
* It's designed specifically for artist-specific albums or songs, not general utility tokens.
* Artists have the flexibility to decide what percentage of their perpetual rights they want to sell—whether it's 10%, 50%, or even 100%.
* This provides artists with a crucial new option to fund their ventures and creativity directly, rather than waiting for slow, traditional industry payouts (which can take three to six months).

* Credibility and Launch Plan:
* Machi X leverages existing credibility within the blockchain space through the Mithril community.
* Crucially, they already have a portfolio of IP from Machi Entertainment (where the name "Machi X" comes from), including popular artists like Nikki Lee and Stanley Huang (who is also an advisor).
This means they don't have to build the platform and then hope* to attract IP; they have a starting portfolio to build out a minimum viable product (MVP).
* The engineering team is aggressively building the exchange, targeting a launch by the end of the year, with actual songs trading on the platform.

* The Machi X (MCX) Token:
* The MCX token is an exchange token, much like Binance's BNB token.
* Its primary utility is to provide a discount on trading fees on the Machi X platform.
* The token distribution was completed via a private sale and will be airdropped to Mithril holders.

* Empowering Content Creators:
* A core philosophy behind Machi X is to give value back to content creators.
* Jeff, a co-founder, expresses frustration with platforms like YouTube and Musical.ly, which profit massively from content creators without adequately compensating them.
* Machi X aims to reverse this trend, using technology to empower artists, let them galvanize their fans, and allow them to access value and funding more directly and efficiently, breaking free from slow industry payout cycles.

Transcript

So I've been editing videos from my past two conferences and one of the topics that's really hot right now is how do we make tokens more valuable. You guys probably heard of the buzzword STO, security token offerings. And to be honest, I'm not bullish at all. I'm pretty bearish on that topic because of the regulations involved. I actually think we need to do something else out of the box. And in this interview, I talked to the guys from Machi X and what they're trying to do is they're tokenizin...

So I've been editing videos from my past two conferences and one of the topics that's really hot right now is how do we make tokens more valuable. You guys probably heard of the buzzword STO, security token offerings. And to be honest, I'm not bullish at all. I'm pretty bearish on that topic because of the regulations involved. I actually think we need to do something else out of the box. And in this interview, I talked to the guys from Machi X and what they're trying to do is they're tokenizing intellectual property. So instead of tokenizing a stock, they're tokenizing a particular song. So it's a way for artists to raise more money, giving up the rights or a portion of the rights to a particular song. But more importantly, why it's important for me is because it allows the community building that we see in crypto for that to be applied to music. Imagine if you own the rights to a particular Taylor Swift song and you can just cheer for it and show it to all your friends. And that's why I think it's worth looking at as a subject on this channel. Have you guys enjoyed the interview? And what do you guys think about this whole idea of IP tokenization? Leave a comment in the comments section below. So IP tokenization, we're looking to address intellectual property assets that aren't frankly being addressed today in today's market. Yeah, so along with this security tokenization trend, I think where people really aren't paying attention right now is this possibility of IP tokenization. To give you a more specific example, this is basically tokenizing a specific song from an artist. Specifically within the music community, artists today struggle with a lot of problems in terms of transparency, efficiency in their royalty payments, etc. And we're looking to solve that problem. Interesting study I saw from the Berklee College of Music in 2015, where they talked about how they estimate somewhere between 20 to 50% of all music royalties are not received by the rightful owner. And there's another study that estimated for each song, there's roughly 900,000 different royalty streams. And I think that's really hard to imagine, which is not that hard to believe why it is that 20 to 50% of music royalties are not paid out properly. It is important to help musicians to continue their craft and be able to really earn a fair and equitable wage efficiently. When I learned about the fact that Beethoven had about 10 patrons, when you think about how some of that music may not exist, if he didn't in fact have those 10 patrons. So from that standpoint, we're not doing anything different that wasn't done in history. We're providing a patron model that exists today in the tokenized setting. Not only are we solving the transparency and the efficiency and the disintermediation of the middleman problem. We're bringing back this old way of patrons, but in a way where patrons can share in the success of their artists. So it's like when you're listening to music and so saying, oh, you know, we got Taylor Swift on, you'd be like, ah, I participated in that. That's my, I'm a patron for that. That's for me. Yeah. And, you know, if not that I need any economic incentives to shill Taylor Swift music. But if I were able to own a piece of her IP and her song, and every time our story plays, not only do I feel like she's singing to me, I can also feel like, hey, I'm going to receive some economic value. Then I am going to not just be a super fan, but I might then go and push for that track to be played across all the movies I can find. You take a fan club and you juice it with the social aspect where it does. In fact, I think galvanize the community to say what else, how else can the community help? When an artist lists their token on a platform, we allow them then to be a vetted admin. And that's going to be unlike the troll box on, on Poloniex where anybody can say anything about anything. And it's not really tied to the specific asset. We're going to make a platform by which that the users are, you can only participate if you own that token. And then the admins can only exist if they're the issuers of the token or affiliates of these issuers. So you're either going to fix a problem or build the biggest troll army in the world. Yeah. Yeah. Well, it depends on how the artists want to manage this troll army. I mean, it can be the most hateful troll army that really gets to whatever it is the artist wants. Or it could be the most friendly, hug it out people who can then go help the artists in whatever way they want. But I think this creates a very interesting new model by which fan artist interaction can occur. So you're talking about an exchange as well. So would they be able to just freely exchange these tokens that they buy? How would that work? So the exchange portion of it works just like any other crypto exchange at this point. So you have a tokenized asset, much like Ethereum. And then you have some kind of exchange rate. You have your bid and ask. And it works just like any exchange like Binance or anybody else. Right. So it's just like an exchange, but then not for utility tokens, but rather for just a specific kind of artist specific album. Right. So this is kind of something that you want to work out with the individual. So it depends on what they want as well. Yeah, that's right. So an artist can decide, I want to go ahead and sell 10% of my perpetual rights to my song or 2% or 50% or 100%. So this creates a new tool and supporting the artist community in order to say, I don't just have this one choice of waiting for the industry to give me my money on these three, six months timeframe. I have now another option where I can fund my venture, where I can fund my creativity, where I can fulfill my dreams with this other option. So in terms of your, you know, you can't come here empty handed. I mean, obviously you probably spoke to artists before and the bands can give us specific examples of bands you've spoken to or yeah. So within Jeff's portfolio of his other line of business there with the unicorn entertainment. There are a few different artists there within the Machi entertainment space. That's where the name comes from, right? Yeah. Machi Entertainment is a Machi X for the exchange. That's true. So, so Nikki Lee in, in East Asia is also very popular. And then his own brother, Stanley Huang, who's won multiple awards in Taiwan as well. And Stanley Huang also is an advisor for Machi X. Oh, right, right, right. So I think what's interesting here is not only do we have the background and credibility within the blockchain space through the myth world community, we also have the right people and the right ownership of certain IPs already. So it's not that we're going to build this thing out and hope that we can get IP to work with us and the owners of IPs to work with us. It is rather that we have a portfolio of IP that we can start with to really build out this minimum viable product, at least, and showcase the impact we can have in tokenizing IP. So, so you're doing this exchange. When do you think this exchange can be launched? Like what's the timeline structure for this whole project? We're very aggressive right now. And I'm very lucky to say that our colleagues on the engineering team has been building this exchange already. And so we're targeting the end of the year for a launch and the technical platform portion where you can just do all the things you can on a regular exchange, sign up for an account, go through the KYC AML process, have an account to trade. And then from there, we anticipate we will have actual songs trading by the end of the year. Okay. Now you have a Demachi X token as well. Yes. So now what's a token used for? So the token is very simply a exchange token at this point. No different than Binance token being able to pay for a discount on the trading fees. You know, my business partner and co-founder Jeff likes to say that in the music industry, he's always getting screwed by technology. When he looks at YouTube and Musical.ly and all these platforms that made money off of the backs of the content creators who don't give anything back. And these days, he and other content creators have to go to YouTube to negotiate. Oh, can we get a little bit more of this red share? But in reality, these technologies wouldn't exist without the content. So he's trying to give back and say, how do we take technology and build it back into the content creators? How do we give value back to the content creators? And this is it. You tokenize assets and you give them another option. You let them galvanize their fans. You know, let them take value out before waiting for this three to six month value payout. And that is how technology can really help the content creators.