Token Economics

A. Payment

Content Consumption

Participants in the LABEL ecosystem can use LBL tokens as a means of payment when consuming educational content provided by LABEL. 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.

NFT Transactions The LABEL team will regularly sell limited edition NFT items in collaboration with artists they work with. Consumers will be able to purchase those NFTs with LBL tokens. In addition, participants in the LABEL ecosystem can make P2P transactions between users at the NFT Market, and use LBL tokens to make transaction payments or cover transaction fees.

Buying Goods After the platform is fully activated, LABEL also plans to provide commerce-style services to sell music equipment or musical instruments. Users will be able to purchase goods using LBL tokens at the Commerce. Additional discounts will be given to users who use LBL tokens.

B. Staking

Starting in 2023, LBL token holders will be able to stake their tokens to receive staking rewards from the DAO Funds or to participate in major governance voting processes. 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. LBL tokens can be held and staked in one’s LABEL account, and only staked tokens allow participation in DAO-related governance voting.

The staking reward ratio will initially be set high enough to promote user growth, but can be gradually decreased as the LABEL token ecosystem expands and the number of users staking LBL tokens increases. As LBL token staking yield decreases, stakers can use a governance mechanism to request a vote for additional compensation from the DAO Funds. These incentives will create a sustainable token ecosystem by providing additional motivation for ecosystem participants to hold LBL tokens.

C. DAO / DAO Funds

LABEL allocates a certain portion of lecture content fees and 100% of NFT transaction fees to the DAO Funds. The DAO Funds will run for the first time in 2023 and will be managed directly by LBL token holders. LABEL will be decentralized step by step, and when decentralization becomes sufficient, LBL token stakers can directly manage the DAO Funds.

The sources of revenue allocated to and accumulated in the DAO Funds are as follows:

• Lecture Content Fees

• NFT Transaction Fees

• NFT Creation Fees

• Lecture Revenue Distribution Fees

Learners and investors can experience new lecture content released into the LABEL ecosystem over time. As new lecture content and other popular content gradually increases, the potential revenue accumulated in the DAO Funds will also increase. The types of fees allocated to the DAO Funds may be changed based on services provided by LABEL in the future. The allocated fee may be paid with an LBL token or ETH depending on the payment method.

Once the DAO is activated, LBL token holders can submit proposals on how to use the tokens accumulated in the DAO Funds. If the proposal passes a vote conducted by the LBL token stakers, the tokens will be utilized accordingly. Details of proposal submission, voting procedures, and funds that can be distributed will be announced after the launch of the DAO.

The following are some examples of how to use the DAO Funds:

Provide Liquidity

Token holders may vote to use some tokens from the DAO Funds and pair them up with different tokens to provide liquidity on decentralized exchanges such as Uniswap or PancakeSwap.

Expand the Ecosystem

Token holders can vote to pay for certain services (e.g., exchange listings, marketing, partnerships, and promotional services) to enhance the ecosystem’s value using some tokens from the DAO Funds.

Funding Development

Token holders can vote to pay some LBL tokens for the development of third-party tools or services to enhance the value of the LABEL ecosystem (e.g., a market, automation tools, bridge connections with other blockchain platforms).

Staking

Token holders can vote to pay some LBL tokens to provide additional rewards for staking so that the token ecosystem can be continuously maintained.

Create Content

Token holders can vote to use some tokens from the DAO Funds to support the creation of new content to improve the overall value of the LABEL ecosystem.