B. Incubating

Incubating is a space where artists can host new lectures and participants can conduct investments in the P2P manner. Here, users can also learn how to invest in the instructor's projects and how those projects will proceed. Incubating provides a voting verification process for new lectures prepared by producers, investment matching, and a linkage function for distribution platforms. In addition, it supports blockchain-based incubating, which encompasses a series of processes for producing, distributing, and monetizing lectures. This includes reward functions to promote lectures that have already been released and the use of IPs for secondary creations.

Incubating Process

• When a producer or IP holder creates a new project, the verification process first begins through voting. Voters include not only general users but also affiliated distribution platforms and individual investors, that have staked their LBL tokens.

• LABEL users use tokens to participate in the vote.

• Once the target number of votes is reached, the project can receive crowdfunding. When funding is successful, unique NFTs in the ERC-1155 standard will be created, and the profits will be automatically paid to funding participants and stakeholders, once it starts generating the revenue.

• Voting participants can receive discounts when purchasing the corresponding project’s content and receive NFTs proportional to their contribution to NFT generation.

The LABEL platform provides an accurate and transparent revenue distribution system through blockchain smart contracts. NFTs are created for lectures that succeed in attracting investment, and their equity ratios are recorded according to the contributions of the instructors, voters, and investors. Sales revenue information for the partner platform is disclosed on the NFT Page, and lecture revenue is distributed by smart contracts based on the NFT ownership percentage.

Partner Platform Revenue API Connection

The LABEL platform provides APIs to affiliated platforms for the distribution of lecture content. It also links lecture information and revenue information generated on affiliated platforms. Information about lecture content that has succeeded in attracting investment will be provided to all platform partners. The lectures will then be distributed and sold. After that, rewards will be given to contributors who participated in marketing the content through promotional events. Profit information based on sales and compensation can be checked on the LABEL platform. Profit information depends on the contribution and NFT ownership rights, and is distributed through smart contracts according to the formula below:

PAall : Total revenue generated from lecture content A

ANall : Total number of NFTs that match lecture content A

Na : Number of NFTs owned by ecosystem participant ‘a’

Pa : Profit that ‘a’ will receive

Pa = (PAall * Na) / ANall

Voting

A vote will be held by the Decentralized Autonomous Organization (DAO) to select content for Incubating. Content selected by vote will be funded through Incubating. Smart contracts are implemented so that investors can get their down payment back if the project fails or, on the contrary, receive rewards if the funding is successful. At this time, blockchain technology blocks any unreasonable behavior that would prevent the successful funding of a project after it reaches the minimum funding amount.

Distribution Support

• Lectures produced as NFTs after crowdfunding are registered as content.

• If the lecturer chooses one of the affiliated distribution platforms that participated in voting or funding, a distribution contract will be signed.

Support for Community Promotion

• Creators are provided with a promotional function to spread lecture content through various social media platforms.

• In the process of external marketing, LABEL tokens can be paid as compensation.

IP Permissions for Secondary Creations

IP can be shared for the production of new secondary creations. Conversely, in Incubating, sponsors and producers can propose new projects that combine various IPs. Through this, the producer is compensated with tokens as additional profit on his copyright. In addition, consumers can participate in the ecosystem not only as content purchasers but also as producers of secondary lecture content. At this time, transparent approval and investment are made through smart contracts. Sponsors and producers receive profits from new projects. Through this process, the producers receive transparent compensation for their copyright.