BUSINESS PLANDraft Version

CONTENTSCompany Vision Musiconomi Project Mission

Musiconomi Genesis

Opportunity

Solution

Market Size

Competitive Landscape

Product Token Utility

The Musicoin Blockchain

Marketing and Community Outreach Ambassadors

Educational Activities

Global Engagement - Local Ambassadors

Small is Beautiful

Early Adopters

Team

Partner and Advisors

Crowdsales and Business Roadmap Musiconomi: The Evolution of Musicoin

Musicoin Project Achievements (as of May 2017)

Musiconomi Development Roadmap

Projected Use of Proceeds

Token Allocation Breakdown

3

4

4, 5

6

7

8, 9

10

11

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11, 12

13

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15, 16

17, 18

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is an integral part of our lives that brings

us closer and connects us. It’s a common

language we all speak regardless of

nationality, religion, race, or culture.

Music is also a lucrative form of busi-

ness. People all around the world are

streaming 5 trillion songs online and the

music industry reached $15.7bn reve-

nues in 2016.

However, it’s not the musicians who reap

the rewards of their continuous effort of

making our lives a little better. The

renowned musician Ed Sheeran even

claimed he makes less than $0.0084 per

stream as the majority of the revenues go

to record labels and publishers who act

as gatekeepers to fame and success in

the industry. This puts new aspiring

artists at the whim of large corporations

that benefits only those who sit on the

top. And usually they are not the ones

who make the music.

MUSIC

01Company Vision

03

Our mission is to build a creative environment enabling

artists to exercise control over their content rights and

revenue stream by empowering a community of artists,

listeners and entrepreneurial music enthusiasts anywhere

in the world to create and exchange value in a transparent

and timely manner. Musiconomi will create a platform that

enables aspiring musicians and entrepreneurial music lovers

to work together directly to form a new global music ecosys-

tem and community. The Musiconomi model will allow musi-

cians to incentivize listeners to promote and share music,

while retaining control of their revenue, thereby creating new

music economy that inspires growth and rewards all users

efficiently and appropriately.

Musiconomi’s platform is the toolbox for building a community

that enables sharing and distribution, coupled with immediate

payments and disbursements. Our goal is to bring block-

chain-based music streaming technology to mass adoption

across the planet and build an expanding network of value,

sharing and prosperity.

Musiconomi will deliver a wide array of new features as well as

new layers of smart contracts that will enable sharing, stream-

ing, all forms of licensing so music can be enjoyed without

friction, leaving all stakeholders immediately and appropriately

compensated.

Having made significant contributions to the successful launch of the $MUSIC currency and

the beta Musicoin platform, the members of the Musiconomi team have gathered tremen-

dous amount of feedback from the community that will form a basis of its future develop-

ment and guide them on the mission of building a blockchain based music economy.

The Musicoin Project has provided an important testing ground for the concept of

pay-per-play music streaming with integrated smart contracts on a blockchain. The Musicoin

team was successful in demonstrating the feasibility and market appetite for such a plat-

form. The next step was to develop a go-to market strategy and solicit funding for the next

stages of growth and development.

01.2Musiconomi Genesis

04

01.1Musiconomi Project Mission

05It was subsequently decided that a for-profit organization would be formed to secure funding

for development of the applications, and the Musicoin foundation would be formalized by

Isaac Mao to focus on blockchain-specific issues including maintenance, security, and gen-

eral improvement.

Dan Phifer, Brian Byrne, Elio Di Iorio, David Werba and Jared Griego would move to establish

the Musiconomi Project which would build and promote an expanded music streaming plat-

form that would engage a broader community of artists, users and entrepreneurial music

enthusiasts that will bring a blockchain-based music system to the masses.

02OpportunityThe music industry has evolved over the last cen-

tury largely to support the promotion and distribu-

tion music as well as collection and disbursement

revenue. However, over the last two decades, the

nature and complexity of those activities has

changed dramatically. With the advent of the

internet and digital music, distribution has been

dramatically simplified. Similarly, social networks

with billions of active users have formed, making

efficient and organic growth possible.

Most recently, digital currency and blockchain

technology have provided a more efficient and

elegant method for collection and disbursement

of funds that works globally and transparently.

Together, these advancements in technology

make a new music industry not only possible, but

inevitable. The efficiency gains that come with

removing or replacing outdated systems and

organizations with low-cost, automated alterna-

tives will give a significant advantage to first-mov-

ers.

By recognizing and embracing new technological

advancements and building a self-sustaining plat-

form that harnesses the power of each, Musi-

conomi will be well positioned to be a dominant

player in a new music economy. Furthermore, the

Musiconomi platform will be accessible to the

aspiring and amateur artists that currently have

few options other than to give their music away

for free in hopes of being “discovered” by a major

label.

By allowing new artists to have immediate access

to the social marketing engine that Musiconomi

will provide, artists will be able to begin connect-

ing with fans and collecting revenue as soon as

they have track they are ready to share, thereby

adding a new segment to the music economy that

has not been well-served traditionally.

06

03SolutionMusiconomi will run on the Musicoin blockchain and use Smart Contracts to automate the

collection and disbursement of payments to musicians, using a “Pay-per-Play” model. Under

this model, a payment is sent in digital currency ($MUSIC) directly from the listener to a digi-

tal contract, which then automatically distributes funds as designated by the artist or rights

holder.

In addition, artists will be able to incentivize social sharing and growth by allocating a

percentage of revenue to users that share or promote their music. Critically, the artist is in

complete control of the reward. This will allow artists to decide between higher revenue or

more promotion at the granularity of an individual track.

07

25%

PPP

GUITARIST

25%DRUMMER

50%SONGWRITERLISTENER

PAY PER PLAYCONTRACT

SINGER

INSTANT PAYENT. AUTOMATICALLY DISTRIBUTED.EVERY PLAY.

04Market SizePaid streaming has become the preferred method for consuming music through services

such as Spotify and Pandora. However, even though the total number of streams surpassed

5 trillion in 2015, both the services that drive the growth and the artists themselves are strug-

gling to make a profit. In large part, this is due to the complex web of intermediaries that take

a cut of the revenue for each play.

08

MARKET DATA

201620152014201320122011201020090

-100

-200

-300

-400

-500

-600

-700

SPOTIFY AND PANDORA GROWING LOSSES

MAKES CURRENT STREAMING UNSUSTAINABLE

PANDORA SPOTIFY

In theory there is a $25bn market for music streaming if we look at the current numbers.

Currently the music industry is at $15.7 in revenues, roughly 60% of where it could be.

09

20

15

10

5

0

201620152014201320122011201020092008200720062005200420032002200120001999

DIGITALPHYSICAL PERFORMANCE RIGHTSSYNCHRONISATION

INDUSTRY REVENUES IN $bn

BETWEEN 1999 AND 2016

While the legacy industry has attempted to

adapt to digital music era, the old system of

intermediaries still exists behind the scenes,

taking a significant portion of revenue. Art-

ists ultimately receive only a small fraction of

the revenue and have almost no visibility into

the process and no way to verify that they

were compensated appropriately. Block-

chain technology offers a significant advan-

tage in this respect, as all transactions on the

blockchain are visible.

Other attempts to circumvent the aging

industry have been made by systems such as

Napster and BitTorrent, but they failed to

create a sustainable model by neglecting to

collect revenue and compensate artists.

While peer-to-peer file sharing may have a

role in the new music economy, it needs to be

done in a way that content creators and

distributors are compensated according to

the value they add.

05Competitive LandscapeSubscription

streaming services

Peer-to-peer

file sharing networks

The Musiconomi solution is: cryptocurrency

for payments, and smart contracts for distri-

bution and tracking who should be paid for

each track. Ultimately, P2P sharing could be

supported, and key management(for audio

decryption) would be the only required cen-

tral service.

Although there are several other startups

attempting to connect music and blockchain,

like Ujo, Voise and AudioCoin, they do not

have traction in the market yet. In terms of

users, Musicoin (with more than 4000 users

on it’s current platform) is far ahead of Voise

and AudioCoin (not open for testing or use).

Ujo is currently in a closed alpha testing

period.

Solution space

Competitive environment

Musiconomis experience and success with

Musicoin.org gives its team a significant

advantage over other entrants into the

music-on-the- blockchain-space. However,

additional entrants in this space will only help

to educate the wider, non-technical public

about the potential for a relationship

between cryptocurrency and music. While

we believe the Musiconomi model offers a

more holistic approach to the new music

economy, we recognize that basic aware-

ness and acceptance of cryptocurrency is a

major hurdle.

Although traditional players, such as Spotify,

Google Music, and Pandora, are well estab-

lished, they offer very little that allows

non-musicians to participate directly in the

music economy. Additionally, Musiconomis

initial focus will be on independent musi-

cians and micro-labels, which are not

well-served by the traditional music industry.

Therefore, we are confident that we will expe-

rience significant growth for the foreseeable

future before encountering direct competi-

tion from traditional players.

Competitive advantage

10

Company Vision Musiconomi Project Mission

Musiconomi Genesis

Opportunity

Solution

Market Size

Competitive Landscape

Product Token Utility

The Musicoin Blockchain

Marketing and Community Outreach Ambassadors

Educational Activities

Global Engagement - Local Ambassadors

Small is Beautiful

Early Adopters

Team

Partner and Advisors

Crowdsales and Business Roadmap Musiconomi: The Evolution of Musicoin

Musicoin Project Achievements (as of May 2017)

Musiconomi Development Roadmap

Projected Use of Proceeds

Token Allocation Breakdown

06ProductMusiconomi will expand on the concepts developed as part of the Musicoin project and will

run on the Musicoin blockchain. In particular, the Pay-Per-Play model will continue to play a

central role in the system. Pay-per-play is an easy-to-understand model that allows artists to

specify the revenue allocations at the time of upload and be confident that each play will be

properly accounted for.

Using PPP as the core of the system, Musiconomi will create the necessary tools to grow a

self-sustaining music economy. In particular, the Musiconomi Token (MCI) will serve a cen-

tral role by enabling features that will allow entrepreneurial (and even casual) users to partici-

pate in a meaningful way. By “locking up” a certain amount of MCI tokens, users demon-

strate their mutual interest in the success of the platform, thereby aligning incentives.

As Musiconomi builds and expands the platform, the MCI token will gain new functionality.

In general, locking up MCI tokens will enable specific types of functionality that will allow

users to participate directly in the new music economy. The number of tokens and duration

of the lock-up required will be dependent on the functionality it enables. However, many

basic features that users would expect of any music service will be available without requir-

ing token lock-up.

For detailed descriptions of the initial set of planned token utilities please see the blog post

at

06.1Token Utility

06.2The Musicoin Blockchain

11

The founders of Musiconomi spent many months developing the Musicoin platform and

building the community from the ground up, and they are passionate about its underlying

principles. All the the proposed features and plans to further develop the concept of bringing

https://medium.com/musiconomi/the-musiconomi-mci-token-utility-a-closer-look-d9f88feb73ef.

Having made significant contributions to the successful launch of the $MUSIC currency and

the beta Musicoin platform, the members of the Musiconomi team have gathered tremen-

dous amount of feedback from the community that will form a basis of its future develop-

ment and guide them on the mission of building a blockchain based music economy.

The Musicoin Project has provided an important testing ground for the concept of

pay-per-play music streaming with integrated smart contracts on a blockchain. The Musicoin

team was successful in demonstrating the feasibility and market appetite for such a plat-

form. The next step was to develop a go-to market strategy and solicit funding for the next

stages of growth and development.

12blockchain pay-per-play music to the masses through Musiconomi will be designed and built

in the spirit of the original vision of the founders. Therefore, it is preferred that the Musi-

conomi platform use the Musicoin currency and run on the Musicoin blockchain.

That said however, it is the responsibility of the proposed Musicoin Foundation to ensure that

the Musicoin blockchain is secure, scalable and up to date. The Musiconomi team will collab-

orate with the Musicoin Foundation and is prepared to provide it with funding in order to

achieve that end.

At present, blockchain technology is in its infancy. Its potential is tremendous, but unexpect-

ed challenges can arise. As prime examples, Ethereum was forced to implement a hard fork

only a year ago, and Bitcoin has been plagued by the ‘block-size debate’ for years - without

resolution.

As much as the Musiconomi team is committed to the Musicoin philosophy, it is also com-

mitted to ensuring the long-term viability and sustainability of the Musiconomi platform.

Therefore, the development team will continuously monitor the development of emerging

technologies that could provide a significant improvement in security, scalability, efficiency,

or user experience.

The members of the Musiconomi project have contin-

ued the work they began as members of the Musicoin

team of actively recruiting artists to the project

through a combination of select event sponsorships,

music conference presentations, strategic partner-

ships, educational programs and multiple social media

channels.

Flowing from that activity, The Musiconomi project will

expand marketing and promotional activity on a mas-

sive scale, to include a focus on emerging indie artists,

artist labels, distributors, and tech-savvy artists and

entrepreneurs.

Building on the Musicoin Ambassador program, the

Musiconomi team will continue to identify and engage

with individuals who are able to provide support and

value to the platform through cross-promotional activi-

ties and synergistic/collaborative use of resources.

Whether it be musicians, promoters, educators or

community organizers, the Musiconomi team will

actively seek to build a strong contingent of ambassa-

dors who will spread the Musiconomi message far and

wide.

07Marketing and Community Outreach

13

MARKETING STRATEGY

07.1Ambassadors

14

The founders of Musiconomi spent many months developing the Musicoin platform and

building the community from the ground up, and they are passionate about its underlying

principles. All the the proposed features and plans to further develop the concept of bringing

We realize that blockchain technology is in its infancy - in a similar way that the internet was

very much a promising but unfamiliar technology in the late 1990s. The Musiconomi project

and its rapidly growing community is uniquely positioned to bridge the gap between technol-

ogy professionals and non-technical potential users of blockchain technology based applica-

tions.

In the beta testing of the Musicoin platform the team began recruiting instructors and facili-

tators who would provide tutorials and support services to Musiconomi participants to both

familiarize them with platform features, and empower them to build their own presence in

Musiconomi that would add value to the network and enables them to generate revenue for

themselves and other stakeholders.

07.1Educational Activities

The Musiconomi team is currently identifying strategic traditional and non-traditional geo-

graphical areas to establish community hubs.

Partnering with local artists and other music industry professionals and enthusiasts in devel-

oped countries as well as in the rapidly urbanizing emerging markets, the Musiconomi plat-

form will support and enable local music economies to exist in a way that the legacy music

industry cannot.

In bypassing the complicated and wasteful myriad of intermediaries inherent in the tradition-

al music oligarchy, artists in developing nations will be able to share their music free of cost,

enjoy the full support of the Musiconomi network, and receive payment that is relatively high

compared to average worker wages in their local community.

As an example, an artist with a little local support in rural Africa may be able to earn the

equivalent of $60 USD per month which may be significantly more than the local average

monthly income. Such an artist may then begin to share her success story across neighbour-

ing communities, and soon there could be hundreds and thousands of artists from emerging

markets earning income in a way that was never before possible or even imagined.

07.2Global Engagement - Local Ambassadors

15

With the advent of the internet, music has become much more ‘niche’. New genres are

emerging all the time, and many labels are becoming increasingly genre-specific and

genre-diversified.

The Musiconomi team envisions thousands of micro-labels and artist labels that represent

artists in non-exclusive agreements, where songs are signed - as opposed to artists. There-

fore, an artist could conceivably release five songs on five different labels at the same time.

No longer is it necessary for an an artist to aspire to signing a traditional record deal.

Simply develop relationships with fans, and ensure they are incentivized to share/distribute

your music.

07.3Small is Beautiful

The Musiconomi team recognizes that plat-

form development and growth will occur at an

accelerated rate over a number of years.

Therefore, the first one million users may a be

reached within three years, and then the next

one million users may be achieved in less

than 3 months. This means that the early

stages of development provide the greatest

amount of opportunity to become established

and productive on the platform, earning many

streams (and potentially payments) and

accruing all of the benefits that platform

pioneers tend to enjoy down the road as mass

adoption begins to happen.

The Musiconomi team is focused on continu-

ing to nurture and incentivize early adopters

who will form the core knowledge, value and

support base for the Musiconomi community

in the long run. To that end, early adopters are

being rewarded with early access to MCI

tokens as well as advanced access to new

features that are developed subsequent to the

conclusion of the crowdsale.

07.4Early Adopters

16It was subsequently decided that a for-profit organization would be formed to secure funding

for development of the applications, and the Musicoin foundation would be formalized by

Isaac Mao to focus on blockchain-specific issues including maintenance, security, and gen-

eral improvement.

Dan Phifer, Brian Byrne, Elio Di Iorio, David Werba and Jared Griego would move to establish

the Musiconomi Project which would build and promote an expanded music streaming plat-

form that would engage a broader community of artists, users and entrepreneurial music

enthusiasts that will bring a blockchain-based music system to the masses.

ENTREPRENEURIAL

MUSIC ENTHUSIAST +

STRATEGIC PARTNERS

Fund platform development

by purchasing MCI tokens and

market/distribute both music

and music related goods

and services to the

listener.

MUSICIANS AND

PRODUCERS

Invest energy to create

works that get released for

listeners’ enjoyment.

LISTENERS

Guide the market by making

choices about what they

enjoy and how they prefer to

experience music.

SMARTCONTRACT

immediate

payment

ONBOARDING NEW USERS

SUPPORT (FAN)COMMUNITIESAND FEEDBACK

EFFICIENT/PREFERREDDELIVERY CHANNELS

08Team

17

The Musiconomi team first began working together on the Musicoin project. Dan Phifer

began working with Isaac Mao (and others) on early prototypes of the software in October of

2016, with Brian Byrne joining in late 2016. Elio Di Iorio, Jared Griego, and David Werba began

contributing to the project in early 2017. Together they made key contributions to get the

$MUSIC currency added to the exchanges, develop the Musicoin web application, and intro-

duce the project to a global audience of both artists and music fans.

Dan has been in software development for nearly 20 years. From the Johns Hopkins Applied

Physics Lab, to Amazon, to Musicoin.org, Dan has made critical contributions to a wide range

of projects over his career. As a co-founder and primary developer at Musicoin, Dan helped

to make the ideas in the Musicoin whitepaper a reality and is uniquely positioned to do the

same for Musiconomi..

Dan PhiferCo-Founder and CTO

Brian brings over 20 years of music industry experience to Muscionomi, from front man of

multi-platinum selling Canadian rock band I Mother Earth, award-winning solo work, and

founder and curator of several charity music projects, including Surf, Sing, Change, Arizona

Project and close work with Unison Benevolent Fund. He has developed incredible relation-

ships with labels, management, agents, and artists, working with Warner, Universal, Dine

Alone, Live Nation, United Talent Agency, Clear Channel and more. Brian is excited to com-

bine his passion for blockchain and his love for Music to show what Musiconomi has to offer

to the music industry 2.0.

Brian ByrneCo-Founder, Chief Musician Ambassador

18

David has a deep background in music as both an artist and web developer. After founding

two successful startups, including Music Forte, Inc. (2003 - 2012), he joined Nexstar Broad-

casting Group as a marketing strategist, web developer, and producer of both local and

national TV shows for FOX and NBC. More recently David was a Shorty Awards finalist for his

non-profit work in the Human Rights sector and is the co-owner/Editor-in-chief at IndieMu-

sicPlus.com. Also a composer and veteran touring musician of over 800 shows, David

earned a degree in Psychology from University of Illinois.

David WerbaCo-founder, Chief Marketing Officer

Peter means 'the rock' but it might not be too far of a stretch to mean 'rock star' in this case!

With over a decade's worth of full stack web development experience in both corporate and

startup environments, Peter is the mastermind behind the 3D Printing site PatternSpace.co

and the application architect that every successful team needs as a cornerstone. Couple that

with his insatiable curiosity and belief in Blockchain technology, and you can just sit back and

watch the fireworks.through many genres his whole life. Elio earned his degree from McMas-

ter University in Hamilton, Ontario.

Peter MooneySenior Application Architect

Jared has had various roles throughout his career. Building homes from a young age and

then migrating into the IT field over 20 years ago. Jared has completed multiple projects and

ventures in Denver, Boston, NYC, Orlando and Los Angeles to name a few. Jared has been

mining and working with cryptocurrencies since 2013. Figuring out how to turn silicon into

beer has always been a dream and mining crypto makes it come true.

Jared GriegoCo-founder, Blockchain Engineer and Operations

Elio is a true generalist and futurist with extensive experience in a wide range of fields and

issues. Elio has held elected public office as well as the position of International Secretary

and Spokesperson for a major political party in Canada, and he pioneered the use of the inter-

net for Canadian political campaigns in 1997. As a child, Elio studied classical guitar, piano

and musical theory at the Royal Conservatory of Music, and has been a music enthusiast

through many genres his whole life. Elio earned his degree from McMaster University in Ham-

ilton, Ontario.

Elio Di IorioCo-founder, Chief Organizer and Spokesperson

09Partners and Advisors

19

Daniel ZakrissonBlockchain Economics and Strategyhttps://www.linkedin.com/in/danielzakrisson/

Erin TaylorCyber-Security, AML and Compliance Specialisthttps://www.linkedin.com/in/erin-taylor-78301846/

Addison Cameron-HuffBlockchain Law Advisorhttps://www.linkedin.com/in/addisoncameronhuff/

Anthony Di IorioBusiness Partnership Developmenthttps://www.linkedin.com/in/anthonydiiorio1/

Jeff DennisBusiness Development Legal Advisorhttps://www.linkedin.com/in/jeffdennis/

Tristan KeyteInternational Music Consultanthttps://www.linkedin.com/in/tristan-keyte-b7b19116/

Eden DhaliwalBlockchain Digital Licensing Specialisthttps://www.linkedin.com/in/edendhaliwal/

Mike TurnerMusic Industry Advisorhttps://en.wikipedia.org/wiki/Mike_Turner_(musician)

20

With the success of the basic Musicoin platform, the Musiconomi Team has been eager to

build a new version of the platform that provides all the features and opportunities for our

growing community to participate in the new music economy.

We are confident that we will continue to develop the platform with the same kind of success

we have enjoyed up to this point.

The Musiconomi platform will reserve a nominal fraction of each transaction resulting from third party sharing and distribution in order to fund basic operations of the platform. All artist/rights-holder generated streams will remain 100% directly remunerated without any revenue sharing to any third party or to fund platform operations.

Musiconomi aims to break-even within 60 months.

10Crowdsales and Business Roadmap10.1Musiconomi: The Evolution of Musicoin

Launched in February 20174200 users39000 streams800 Slack MembersMultiple events and sponsorships

10.2Musicoin Project Achievements (as of May 2017)

10.3Platform Sustainability

21

Scope of Work:

10.3Musiconomi Development Roadmap

$6mil USD ThresholdOpen Musiconomi office in a strategic market centre

Launch Advanced Blockchain-Based Music Streaming Application (upgrade/redesign Musi-

coin prototype)

Build and Support Basic Sharing/Backing Features

Develop Playlist Feature

Develop Playlist Sharing Features

Develop Mobile App

Time to implement

8-12 months

Target number of users

150k

23

10.4Projected Use of Proceeds

70%

60%

9% 31%Administrative

LegalOverhead

Development Expenses

PR

Marketing

NEXT

48 MONTHS

30%

9%Administrative

LegalOverhead

70% Development Expenses

21%PR

Marketing

FIRST

24 MONTHS

24

To be Issued: 100 million MCI tokens

The team has had the benefit of studying numerous other crowdsales and draws on the

expertise of crowdsale pioneers Cofound.it to ensure an appropriate and sustainable alloca-

tion of crowdsale proceeds and tokens.

50% release to public

25% team, partners

25% strategic partnership reserve

Team tokens will be vested for 18 months.

Strategic Partnership Reserve: This allocation will be for music professionals such as inde-

pendent/artist labels, musicians, DJs, producers, promoters, distributors etc. to incentivize

them to connect their fans/network to the Musiconomi platform. It will also be used to com-

pensate strategic advisors and ambassadors who are willing and able to support/promote

the Musiconomi platform.

11.1Breakdown

11Token Allocation