LABEL builds a token economy with $BLB (UTILITY TOKEN) tokens a nd $LBL (GOVERNANCE TOKEN) tokens. $BLB tokens have no restrictions on issuance and have a different spending mechanism than $LBL tokens. $LBL tokens are governance tokens that are used and supplied for in-app payments, marketplace payments, Listen-And-Earn, staking, governance, and burning.
In addition to purchasing through exchanges, both LABEL tokens can be obtained in the form of rewards through contributions to the LABEL 2.0 ecosystem or by participating in various activities. To participate in LABEL, players must purchase Headphones using tokens. Token holders will not only b e able to participate in the ecosystem, but also have the opportunity to participate in various events and obtain ecosystem rewards. Based on this process, the ecosystem and platform will be flexibly expanded, and various music content will be actively consumed, thereby establishing a virtuous cycle of LABEL tokens.
LABEL is a Web 3.0 music content platform that introduced the world's first blockchain-based Listen-And-Earn mechanism. The LBL token is a multi-chain governance token.
LBL tokens will be used to trade NFTs, stream music, stake, and participate in key governance voting.
Players can stream music and become token holders through rewards. Rewards from the streaming process are accumulated in the DAO Funds. The accumulated rewards will be used to develop the LABEL ecosystem. Players become holders by streaming music, and token holders can stake tokens and participate in key governance voting.
The mechanism illustrated above has three main goals.
- Listen-And-Earn: Let players stream music and earn rewards.
- Staking: Incentivizes token holders to participate in governance voting by holding tokens.
- Governance: Decentralizes ownership and governance of LABEL.
LABEL aims to be a decentralized platform where the community can fully own and operate the ecosystem. LABEL builds and implements governance mechanisms. It follows decentralized policy-making practices and opens up endless possibilities for the community. The transition to decentralization will be gradual.
There are no restrictions on the issuance of BLB tokens. The methods for accumulating BLB tokens are as follows:
- Total Battery Energy
- Time and Mode of Use
- Headphones (Type, Attribute, Rating, and Level)
- Stickers (Type, Level, and Socket Rating)
BLB tokens will be partially spent and burned during the following activities:
- Leveling Up Headphones
- Creating Headphones
- Repairing Headphones
- Unlocking Sticker Docks
- Upgrading Stickers
- Opening Lucky Boxes
A certain amount of the entire amount of LBL tokens will be distributed among users participating in Listen-And-Earn and Governance. LBL tokens will be used as follows for the continuous maintenance of the token ecosystem. For more information on LBL token distribution, see [Token Distribution].
Players can trade their NFT items if they need to in order to enjoy Listen-And-Earn on the NFT Market before streaming music from TRACKS. In addition, TRACKS charges different fees for various in-app activities, which players must pay.
Players can use smart contracts to transfer NFTs stored in the app and easily transfer them without a separate contract. To this end, players transfer NFTs, such as Headphones, Stickers, and Badges, from the app to the NFT Marketplace. At this time, the player pays the NFT transfer fee.
Players pay fees in the process of using their NFTs, such as leveling up Headphones or upgrading items in the app. In addition, players burn NFTs such as Headphones, Stickers, and Badges and pay a fee in the process of acquiring tokens.
In this way, a certain portion of token settlement, commission, and NFT purchase rewards is accumulated in the DAO Funds. Payment policies to be added in the future may be decided by a DAO (Decentralized Organization).
For more information on the token economy used for Listen-And-Earn, see [TRACKS].
LABEL builds a sustainable token ecosystem by motivating people to keep holding LBL tokens. Staking is also used as a means to participate in governance, and LBL token stakers can participate in exclusive special events or receive bonus opportunities.
Staked LBL tokens are not liquid, cannot be transferred or sold, and cannot be unstaked for a certain period of time. Users with staked tokens can participate in governance voting related to the DAO.
LABEL introduces a governance mechanism that allows staked LBL token holders to vote for or against various proposed changes to the ecosystem. Each staked LBL token equals one vote, and the more LBL tokens staked by token holders, the more likely they are to affect the voting results. A detailed description of this follows.
D. DAO & DAO Funds
DAO (Decentralized Autonomous Organization)
The main purpose and utility of the LBL token is to participate in governance. LABEL plans to introduce a governance voting system to the LABEL platform, allowing stakers holding staked LBL tokens to vote for or against various proposed changes to the LABEL ecosystem. Each staked LBL token equals one vote, and the more LBL tokens staked by a holder, the more influence they can have on voting results.
Stage 1 (Initial Phase)
As the first step necessary to build a fully decentralized mechanism, the dashboard, an early version of Governance (DAO), will be released. On the dashboard, users can participate in voting according to policy decisions in the LABEL ecosystem. The staking function is activated through a separate UI to provide VPs to users. In the initial phase, only votes are allowed on topics such as cost and fee reduction, DAO Fund features, and other small categories of features.
In the second phase, the DAO's UI/UX will be upgraded with a staking function, which will further strengthen its functionality. To this end, on-chain voting will be held for more detailed policy decisions. At this time, the number of staking tokens required for voting may be adjusted.
LBL token holders can change the governance framework and assign new items to vote on. Suggestions that can be determined through the DAO using VP include the following:
Governance Voting Agenda
Users who have obtained more than a certain number of VPs can submit a proposal to the DAO. In this case, the range of the proposals’ categories is as follows:
- Suggestions Related to the Use of DAO Funds
- Suggestions Related to the Token Economy
- Other Project-Related Suggestions
- Other Fee-Related Suggestions
VP (Voting Power)
VP means the voting right that can be exercised in the DAO. Participants can cast the number of votes equal to the VP they own on proposals submitted to the DAO. A participant's VP is determined by the LBL tokens they own at the time the block of votes is submitted. If a majority is confirmed with respect to the submitted proposal, the proposal is applied to the LABEL ecosystem. All transactions related to the submission and voting of governance proposals are posted on the blockchain.
In the LABEL token ecosystem, a certain portion of token payment fees, NFT transactions, and production fees is accumulated in the DAO Funds. The LABEL platform will be decentralized in stages, and after decentralization is sufficiently achieved, LBL token stakers will manage the DAO Funds. Tokens allocated and accumulated in the DAO Funds come from the following:
- Music-Fi Payment Fees
- NFT Creation, Transaction Fees
- NFT Spending, Burning Fees
Players can experience new music content released by LABEL at any time. As new music content continues to come out and popular content accumulates, the number of tokens accumulat ed in the DAO Funds will also steadily increase. Fees allocated to the DAO Funds in the future may be changed depending on the services provided by the LABEL platform.
When the DAO is activated, LBL token holders can propose how to use the tokens accumulated in the DAO Funds. Submitted proposals will be voted on by LBL token stakers, and if the proposal is passed, tokens will be used accordingly. Details about proposal submission, the voting process, and how to distribute funds will be announced in detail after the DAO’s launch.
Here are some examples of how the DAO Funds can be used.
- Provide Liquidity
Token holders can vote to use some tokens from the DAO Funds to pair with different tokens and provide liquidity on decentralized exchanges such as Uniswap or PancakeSwap.
- Ecosystem Expansion
Token holders can vote to use some tokens from the DAO Funds to pay for specific services (e.g., exchange listings, marketing, partnerships, and promotional services) to enhance the value of the ecosystem.
- Development Financing
Token holders can vote to use some LBL tokens for the development of third-party tools or services to enhance the value of the LABEL ecosystem (e.g., markets, automation tools, and bridge connections with other blockchain platforms).
- Create Content
Token holders can vote to use some of the DAO Funds to support the creation of new content and bring about the overall value improvement of the LABEL ecosystem.
LBL tokens will be partially consumed in the following activities:
- Leveling Up Headphones
Players can spend LBL tokens to upgrade their Headphones to a certain level.
- Creating Headphones
Players can spend LBL tokens to increase their chances of recei ving higher-grade Headphones when opening a crafted Headphone box. In addition, LBL tokens can be spent to increase the probability that two Headphone boxes will be received.
- Redistribute Headphone Attribute Points
Players can spend LBL tokens to redistribute the four attribute points of the Headphones they have.
- Upgrade Stickers
Players can spend LBL tokens to upgrade their Stickers to a specific level.
Total of 3,000,000,000 LBL tokens are issued and distributed in the following way:
- Development 25%
- Marketing / L2E 25%
- Token Sale 20%
- Ecosystem 15%
- Reserve 7%
- Team 5%
- Advisors 3%