Mozik White Paper - moziknft.com

Mozik White Paper

Music inspires dreams and creates value

October 2020

Mozik Let music inspire dreams and create value

This white paper is only to be used for project information purposes and does not constitute investment advice. 1

Contents

1 FOREWORD ............................................................................................................................ 3

1.1 MARKET CONDITIONS .............................................................................................................. 3 1.2 PAIN POINTS AND CURRENT SITUATION ................................................................................. 5 1.3 VISION ...................................................................................................................................... 6

2 MOZIK SOLUTIONS ............................................................................................................. 7

2.1 SOLUTIONS ...................................................................................................................................... 7 2.2 INNOVATION AT MOZIK ............................................................................................................... 10

3 PRODUCTS AND APPLICATIONS .................................................................................. 11

3.1 MUSIC SHARING PLATFORM .................................................................................................. 11 3.2 COPYRIGHT AUTHORIZATION TRANSACTION SYSTEM ......................................................... 11 3.3 DERIVATIVES TRADING PLATFORM ....................................................................................... 12 3.4 NFT ASSET ISSUANCE SYSTEM ............................................................................................... 13 3.5 COPYRIGHT PROTECTION SYSTEM ......................................................................................... 14 3.6 USERS AND TRAFFIC ............................................................................................................... 15 3.7 TRADING RANKINGS .............................................................................................................. 17

4 MOZIK’S ECONOMIC ECOSYSTEM ............................................................................... 17

4.1 ECONOMIC MODEL ................................................................................................................ 17 4.2 NFT ASSETS AND EXCHANGE ................................................................................................ 18 4.3 CONTENT REWARDS ............................................................................................................... 20 4.4 COOPERATIVE NODE CONSTRUCTION ................................................................................... 22 4.5 IP RIGHTS CROWDFUNDING .................................................................................................. 23 4.6 KOL INCUBATION .................................................................................................................. 24

5 APPLICATION ECOSYSTEM ............................................................................................ 25

5.1 ONLINE MUSIC COMMUNITY ................................................................................................. 25 5.2 USER AND FAN COMMUNITIES .............................................................................................. 25 5.3 DIGITAL ASSET ECOSYSTEM ................................................................................................... 26

6 PROJECT PLANNING ......................................................................................................... 27

6.1 TOKEN DISTRIBUTION ............................................................................................................ 27 6.2 BUSINESS PLAN ...................................................................................................................... 27 6.3 PRODUCT PLANNING ............................................................................................................. 28

7 ABOUT THE TEAM ............................................................................................................. 28

7.1 CORE TEAM ............................................................................................................................ 28 7.2 CONSULTANTS ....................................................................................................................... 30 7.3 COOPERATIVE PARTNERS ....................................................................................................... 31

8 RISK AND LEGAL COMPLIANCE .................................................................................. 31

8.1 RISKS AND EXEMPTIONS ........................................................................................................ 31



8.2 LEGAL COMPLIANCE .............................................................................................................. 32



1 Foreword

1.1 Market conditions

Online music is a product or service that integrates images, text, audio, and video

content through digital technology and which combines digital media technology with

cultural creativity. Its forms of expression include literature, film and television, games,

animation, music, performances, and derivatives. Online music relies on the Internet as a

means of transmission, as well as for content generation, online consumption, and value

transfer. The development of Internet technology is the driving force behind the

development of digital content.

According to the 2019 Global Music Industry Report released by the Global

Recording Industry Association, revenue for the global music industry market has reached

$19.1 billion U.S. dollars, an increase of 9.7% from last year. It is the fourth consecutive

year of growth since 1997, and the highest growth rate ever seen.

Figure 1 Growth trend of the global music market

The Chinese music market ranked among the top ten in the world for the first time in

2017, and climbed to seventh place in 2018, having achieved rapid growth over a short

period of time on account of the vigorous promotion of music legalization policies. After

Tencent Music Entertainment Group’s IPO, which was valued at $25 billion US dollars, the

market turned its attention to China's music industry.

When compared with other fields of entertainment such as gaming, videos, and

movies — which already make up the world's top three markets — it is clear that China's



digital music market is still going through its own period of explosion. We believe that,

with increased legalization, we will see better levels of copyright awareness, and the

Chinese music market will create ideal opportunities for development.

China’s copyright market for digital music has been in its infancy for a long time. In

2018, the market size was only 190 million yuan. Under the strengthening of relevant

policies and supervision, rights for short videos and animations have gradually been

formalized. The use of copyrighted music is bound to garner increasing levels of attention.

According to a report by iResearch Consulting Group, it is expected that China's music

commercial copyright market will grow tenfold or more over the next two to three years.

Figure 2 Growth trend of the domestic music market

Major music platforms are fiercely competing for rights to high-quality music.

Tencent’s exclusive copyright agency fee has risen from $30 million US dollars to $350

million US dollars plus $100 million US dollars of equity. In the first half of 2018, copyright

royalties amounted to 4.5 billion Chinese yuan.

With the development of mobile Internet and the future popularization of 5G, the

digital content market will continue to grow exponentially. In the era of self-media, the

Internet has become a digital stage for the public at large, and the pan-entertainment



ecosystem is growing in intensity.

The pan-entertainment ecosystem has come about due to the prevalence of

consumerism. The fan economy driven by IP content and internet celebrities and the scale

of derivative consumption and market potential are huge. This economic system consists

of users, fans, platforms, and grassroots creators, who together have built a huge and

highly engaged economic group.

1.2 Pain points and current situation

As can be seen from the above data, the online music industry is huge and is

continuing to grow rapidly. As a result, it has great potential. It is currently developing in

multiple directions, such as copyright legalization, diversification of content, and fan

socialization, and has gradually formed a development model of integration and

interaction.

l Competition for quality copyright content

The ability for music platforms to develop is determined by the richness and

quality of their content. As mechanisms for and awareness of copyright

protection has improved, competition for music copyright has become more

fierce, especially for high-quality copyright..

l Cultivation of in-depth content

Our copyright-based music platform boasts incredible content incubation

capabilities and a diverse range of channels for content promotion and

realization. Good content cultivation provides fuel for our music platform to

outperform the competition.

l Pan-entertainment cooperation

Digital music platforms often form links with pan-entertainment businesses

such as music festivals, variety shows, film and television dramas, and video

games to actively develop and utilize the value of music copyright, and

improve incubation and mining of music IP.

l Fan economy

Many leading digital music platforms have begun to focus on social aspects



such as user engagement and interactive communities, inviting celebrities and

KOLs to enter their platform, and linking with other online music social

products to enhance platform user engagement and diversify platform content.

The above trends have reduced platform operating costs, increased the value of

copyright, enhanced content monetization capabilities, and expanded different revenue

channels. However, there are many pain points in the online digital music industry as it

currently stands.

1. Super-traffic platforms such as Tencent and Ali Baba occupy the core position of

the online music ecosystem and are at the top of the food chain, while online

music creators are in a very weak position, and copyright and economic benefits

are not guaranteed. In order to meet the requirements of the traffic platform,

online music professionals are forced to create according to quantitative

standards and lack an environment for creating high-quality goods.

2. Online music works are highly reproducible and it is difficult to protect rights for

them, so piracy is rampant. As a result, the interests of creators are harmed and

their enthusiasm is severely damaged.

3. The lack of a unified and standardized online music trading platform makes

standardized copyright transactions difficult, and copyright transactions are not

standardized. At the same time, there are problems with inconsistencies in

copyright law during cross-border transactions. The cost of payments is high,

while the cost of trust is also high.

4. There is a lack of proper standards for the economic value of IP assets generated

by online music. The end user’s connection with IP creators and IP operators is

not strong, and the interests are asymmetrical. This has led to the development of

a large number of IP derivative products in a high-risk state. The needs and

interests of consumers cannot be effectively met.

Facing these problems, it is meaningful to introduce blockchain technology and

business models into the online music industry, and establish a new type of blockchain

online music community that integrates creation, comment, and transactions.

1.3 Vision

The Mozik community is committed to building a blockchain-based digital



entertainment ecosystem for online music and establishing the world's largest music

asset NFT distribution platform. An active and influential blockchain community for

online music creation and digital copyright-related IP derivatives trading has been

established between online music creators and consumers via online music distribution

agreements and copyright transaction pricing agreements. In this blockchain-based

community, creators use efficient digital creation software and hardware tools to put the

created online music assets on the chain through decentralized confirmation methods.

Critics, traders and industry operators discover outstanding works in the community and

break the traffic monopoly of centralized platforms, thereby realizing an efficient, fast and

low-cost creation, storage, trading and IP derivative development system of various forms

of online music and on a global scale.

The Mozik market focuses on supporting independent creators, helping them

realize traffic monetization, value growth, content innovation and fan operations, and

realizing a diversified and win-win music ecosystem. The Mozik platform provides

basic facilities and services such as asset protection, distribution, trading, and traffic

sharing.

2 Mozik solutions

2.1 Solutions

Mozik’s core solution is to use blockchain technology to reduce the cost of trust, and

propose an end-to-end benefit sharing mechanism to create an ecosystem that facilitates



the sharing and co-constructing of content and benefits for creators, platforms, consumers,

and investors. We will also build a more fair and reasonable profit sharing mechanism,

reduce the cost of front-end content creation, share the benefits of the platform, strive to

achieve the balance of interests of all parties in the ecosystem, and achieve an ecological

platform of shared and co-governance. Mozik considers IP to be a core digital asset that

connects producers and consumers through the platform and, with blockchain technology,

maximizes the effect of assets, and achieves a balanced return.

Figure 2.1 Co-construction mechanism with IP assets as the core

Mozik’s focus is on solving common problems in online music creation, discovery,

trading, and fan operations, including blockchain solutions, smart contract collections for

copyright transactions, digital content storage, fan economy and other issues. As shown in

Figure 2.1, the Mozik system builds a complete Mozik ecosystem from three aspects: basic

protocols, application layer tools, and communities.



Figure 2.1 Description of the Mozik ecosystem (from top to bottom: community

applications, public services, and basic layer)

1. Mozik promotes the Digital Content Distribution Protocol (DCPP), which uses

technical means to achieve decentralized confirmation of rights on the chain.

Mozik will deploy community resources to support digital content creation tools

compatible with DCPP-related confirmation on-chain protocols.

2. After the digital content is confirmed on the chain, Mozik will use NFT (Non-

Fungible Tokens) for asset identification. In addition, Mozik will provide a

discovery mechanism for content value and cooperate with the use of Mozik

tokens to encourage users in the Mozik community to actively explore the value

of works. The system will incentivize the production and discovery of good works,

after which participants can use the Mozik Copyright Transaction and Pricing

Protocol (CTPP) to quickly and conveniently complete copyright transactions. In

the early stage, Mozik will also set up a trading ranking list for the mining

mechanism to encourage the community to trade more good works

3. Mozik uses smart contracts to solidify the distribution ratio of copyright revenue

in the product crowdfunding release stage, ensuring that early investors get long-

term profit distribution in the subsequent IP business realization process, and

incentivizing creators and early participants to create and mine more valuable IP

basic assets, but also provide valuable data reference and traffic channels for

subsequent IP commercialization.

4. Mozik takes community construction and its global vision seriously. Therefore,

we will build our content and transaction communities on a global scale,



effectively promoting digital content creators and transaction groups to continue

to enter the community on the chain, and maximize the value of the digital content

industry.

5. After digital content is put on the chain, its intrinsic value will have a lot of room

for improvement. Therefore, the Mozik community will actively promote the

construction of infrastructure, such as community unified identity signs, AI big

data copyright protection, and offline digital copyright carrier channels to increase

the use of digital content and amplify its use value.

2.2 Innovation at Mozik Compared with traditional music websites, the content innovation community at

Mozik boasts the following innovations.

1. A mechanism for content mining: Through the establishment of a token economic

model, content mining algorithms can be relatively fair and reasonable, thereby

encouraging community participants to create and discover outstanding works,

breaking the monopoly of centralized platform traffic, and promoting the sound

development of the ecosystem.

2. Decentralized online music on-chain confirmation standards: We have developed

high-quality online music registration tools that allow us to use technical

protocols to achieve decentralized verification of rights on the chain and reduce

on-chain costs.

3. The first intelligent engine for copyright transactions: Both copyright

confirmation and transactions can be resolved through blockchain smart

contracts to resolve differences in copyright laws and payment tools in different

countries, reduce copyright transaction disputes, minimize transaction costs, and

improve transaction efficiency.

4. A two-level copyright transaction mechanism: We support peer-to-peer over-the-

counter copyright transactions and the trading of outstanding works on our

digital asset exchange. By establishing an active trading community, we will

facilitate smoother copyright transactions and allow the market to discover the

value of digital works.

5. A mechanism for maximizing the value of digital content based on IP

monetization: This mechanism enables us to repay content mining algorithms,

allowing content discovery and commercial monetization to form a virtuous

circle, which maximizes benefits for all parties in the ecosystem while issuing



assets securities, IP and fan economies to build a generalized economic

microcycle, thereby providing more economic power for IP incubation and KOL

development and promoting traffic operation and value realization.

3 Products and applications

The Mozik application layer covers important parts of the Mozik ecosystem, including

creation incentives, rankings, copyright trading systems, and copyright protection systems.

We have built a closed-loop process from digital content creation, value discovery, and

transaction to infringement processing. A document-based one-stack service platform is

also on the agenda.

3.1 Music sharing platform

The Mozik Foundation product system will build an online music sharing platform

with decentralized technology. We will attract content creators to share their works

through this platform, and introduce a sharing incentive mechanism to continuously

expand online music through token rewards to build a rich and diverse online music

platform.

Mozik will attract different types of creative unit platforms to collaborate with, bring

online music and users through various applications, and activate platform traffic. We will

also help creators in different fields carry out joint content creation and marketing.

As a comprehensive platform, Mozik can encourage the launch and search of creative

content through search engines and rankings, establish a professional search portal, guide

different DAPPs, and facilitate user inquiries and searches.

Online music sharing platforms are more creative with the help of different DAPPs,

through continuous encouragement and attraction of vertical digital creation content

platforms to build an online music sharing platform, and at the same time connect users,

merchants, and content communities through the platform to build an independent open

sharing economy community.

3.2 Copyright authorization transaction system

Every work created by the creator can be independently chained to form a NFT digital

asset that meets the specifications. The value of this digital asset is unique and requires

community traders to appraise the value through initiating transactions. Mozik has set up

both a copyright trading market and a token trading market.



In the copyright transaction mode, the created works will participate in the ranking

by default, and with excellent works selected by content mining, traders can quickly make

transaction decisions based on the popularity, style, appreciation potential and other

factors. Thereafter, both parties can conduct copyright pricing point-to-point, and confirm,

establish and execute the corresponding transaction contract. In other cases, the creator

does not publish to the leaderboard after completing the work, and first transfers the

copyright to the trader. The trader initiates participation in the content mining of the

leaderboard and enjoys the additional rewards brought by it. Therefore, they are willing

to pay a high premium for the possible high yield, and the creator can realize the

appropriate premium for the work in advance to increase certainty.

3.3 Derivatives trading platform

Derivatives are an important link in creating IP content. The same item of clothing

will be three to eight times higher in price if it is packaged with well-known IP, and the

fixed rate of copying the items in the IP content will be even higher. A large amount of

original IP in the community projects supported by Mozik can activate content

monetization through IP authorization and derivative transactions. The IP protection and

authorization system on the Mozik product platform can provide good copyright

protection, while derivatives based on the market can connect fans, creators, and

distributors.

1. The issue of IP authorization

Derivatives are very cautious in the selection of IP. An in-depth understanding of IP

popularity and the commitment of core fans is required to avoid sluggish sales. The

difficulty lies in the great bargaining power of big IPs, and the ability to build their own

teams to make garage kits. There is also competition among garage kit factories, so it is not

easy to get good IP. The Mozik ecosystem encourages and supports communities, among

which there is a large quantity of original IP. Through the fan community, the content and

IP authorization market can be developed.

2. IP protection conundrum

The Mozik platform features a copyright registration and protection system made

possible by blockchain technology. It uses a blockchain that cannot be tampered with and

a common witness model to protect the original copyright. Through the blockchain

transaction and authorization system, the traceability of copyright can be realized, which



can resolve issues relating to copyright protection. The response to difficult problems that

have emerged have brought about the protection of the production and marketing of

related derivatives.

3. Insufficient consumer purchasing power

Those who purchase garage kits are core fans of the IP who recognize its added value

such as rare virtual items in the game that are included as a bonus. Community projects

interact with fans through IP incubation. These fan groups can naturally be transformed

into consumers.

Mozik connects different project groups with a light operation approach, and digests

the derivative market through the content interaction of the project groups themselves and

the traffic, so as to gather a certain amount of traffic and expand the external traffic.

3.4 NFT asset issuance system

The content of music IP itself has value in its rapid dissemination and ability to attract

traffic, which can bring good traffic dividends, such as advertising effects, user fan

promotion, and derivative product sales. Financial support and incubation is required

during the early stages of operation, which is very consistent with the issuance of IP assets

as fans and investors can participate in investment. For IP owners or KOLs, they can issue

their own digital assets through the blockchain which can then be segmented and traded.

With the funds obtained, IP owners can continue to develop and operate fan

communities and IP creation, share benefits, and ultimately form a recyclable micro-

economic ecosystem. The platform can also provide one-click issuance and technical and

issuance support for assets and issuance management, asset evaluation, online issuance,

and transactions according to the issuance requirements. At the same time, the platform

can rely on existing user groups and transaction methods to provide user support.

The following assets can be issued on this system platform:

1. Assets based on music copyright projects and related entities.

2. KOL assets based on traffic and related IP content.

3. Popular and valuable assets created by users.

The platform hopes to stimulate more content creators to participate in the

construction of the ecosystem through the support of the token economy. In this way, fans

are not only consumers but also investors that can share the benefits of digital assets by

participating in the creation of content.



3.5 Copyright protection system

The Mozik system records the complete data of the entire process of online music

creation and transaction by users. Since the blockchain is non-tamperable, works are

confirmable, traceable, tradable, and monitorable. Within the community, copyright

protection of works is based on a systematic solution. However, copyright issues are still

rampant outside the Mozik community. This is explained in detail in Chapter 1. This issue

is mapped to the Mozik community and is reflected in the following two questions:

How can we prevent Mozik creators from infringing on the intellectual property

rights of creators outside the Mozik community?

How can we prevent abuse and malicious plagiarism of the copyright of works in the

community outside the Mozik community?

Regarding the first question, Mozik encourages excellent content creation and mining

mechanisms from the perspective of the token economy, and relies on community power

to select truly original and valuable online music works. The more mature the community

is, the fewer rewards the Mozik community will have for pirating IP outside the

community. However, in the early stage of the community, this problem may be

troublesome. Mozik uses the creation process data as the original basis, and has not yet

solved the problems of copying and second creation from a technical perspective.

Regarding the second question, there may be two situations. After a trader buys the

work of a creator in the community, it may become improper use when the execution effect

of the smart contract is not ideal. For example, after traders purchase the copyright of a

work at a low price they might use it commercially, thereby causing trouble for the creator.

In this case, the Mozik economy has a self-correction function that can optimize smart



contracts in subsequent transactions and adjust transaction prices. In the second case, due

to the imperfect infrastructure of the online music blockchain, the application may have to

be used off-chain, which brings about the problem of copyright leakage. In this case, the

Mozik community is committed to building a blockchain-based digital business

infrastructure to promote safe and low-cost online music applications.

Therefore, in the early stages of the Mozik community, it is necessary to borrow

traditional copyright protection methods. The Mozik community plans to cooperate with

artificial intelligence and big data copyright protection systems to conduct 24/7 copyright

big data monitoring of the entire network of works generated inside and outside the

community — including internal and external networks in the community — with the help

of our partners’ massive feature retrieval technology, image recognition technology,

fingerprint algorithms and other big data AI technologies. Once an obvious infringement

is discovered, it will trigger a community dispute settlement mechanism.

1. Works in the community infringe works in the community. The Mozik

community will follow the Berne Convention as a guide to putting online

music creation and transaction processes on the chain for certification. During

the transaction process, the buyer will also be required to authorize and

authenticate to form a chain of evidence to facilitate user rights protection.

2. Works in the community infringe works outside the community. For the

infringement of works in the community to external works, the Mozik

community mainly implements the “offline” of infringing works through the

reporting mechanism and the big data copyright monitoring system. The

rights protection of subjects outside the community will cooperate with the

legal requirements of various countries to provide relevant evidence.

3. Works outside the community infringe works in the community. The Mozik

community actively maintains the copyright of the community’s works. The

system will automatically remind community users of the violations of

community users’ rights and interests detected by big data and artificial

intelligence technologies, and provide relevant evidence at the user’s request

to cooperate with their offline rights protection activities.

3.6 Users and traffic

The Mozik platform builds a unified identity system based on the blockchain. For all



users on the app you can create the underlying blockchain identity while having a

corresponding wallet. Through virtual asset management, all users are connected and

unified at the same time. The identity system can realize functions such as circle

intercommunication, traffic mutual conduction, and unified authentication, and realize the

exchange of virtual assets between different apps.

A unified account system based on the blockchain is constructed for the Mozik

platform. This account system supports the functions of on-chain authentication, wallet,

and unified authorization. It is controlled by the user, and the pair is realized through the

corresponding public and private key pair. User account control and corresponding virtual

asset management are more secure and reliable. User systems for different apps are

managed by their respective applications. The underlying platform will not involve

corresponding information management. Finally, a two-tier system of users and accounts

is formed, which are interconnected. The user’s asset information and control rights are

controlled by the user through blockchain technology, based on which the following

functions can be achieved.

1. Unified authentication: Users can log in with unified authorization in

different applications.

2. Asset control: Users can control and manage different application assets with

one account on the chain.

3. Credit management: Through transactions and the behavior and usage of

their respective platforms, the user’s credit is gathered to achieve a unified

credit rating mechanism, which is more convenient to share with different

apps.

4. User traffic mutual conduction: Users can conduct mutual conduction

between different apps. Through a certain incentive mechanism, the app

platform can obtain traffic incentives and exchanges from other apps for traffic

from different apps, achieving a win-win situation and increasing user activity.

Mozik will be a place where traffic converges. Users will gather through blockchain

and tokens. The traffic itself has corresponding fan effects and vertical field characteristics.

Through the introduction of external advertising and in-depth operation, the value of

traffic can be realized. The blockchain smart contract method shares the income generated

by the traffic among the platform, community, influencers and fans, thus making the

distribution method more fair and transparent. At the same time, the blockchain platform



can be accurately positioned through token incentives and participation. To avoid

problems such as scalping and data fraud, users make traffic data and user behavior data

more accurate, and maximize the value of each project’s traffic through the traffic exchange

center built on the Mozik platform.

3.7 Trading rankings

The Mozik system has set up transaction rankings, which are mainly divided into

works transaction rankings and buyer rankings, mainly based on transaction volume

statistics. The statistical cycle is divided into three types, one week, and one month. In the

early stage, the weights assigned to each trading leaderboard are relatively high, and the

system reward value that traders receive is relatively high. Mozik encourages traders to

trade more and trade good works. After the establishment of the Mozik digital exchange,

the reward coefficient of the trading rankings will become normal. At this time, the

incentive mechanism is mainly changed to trading rankings, which affects the weight of

works entering the digital exchange, and the super node power that buyers obtain in the

digital exchange.

4 Mozik’s economic ecosystem

4.1 Economic model In the Mozik economic system, the platform token MOS (Mozik Stable Token) is an

important carrier and tool in the economic activities of the platform, and has the following

functions as a blockchain-based point system issued by the platform.

1. The value measurement tool of assets on the platform, so issued assets can be

used for staking or as an economic aggregate reference

2. It can be used as the pricing and exchange medium for the platform to

provide basic services, and provide corresponding service pricing according

to the scale and service requirements of different DAPPs and assets

3. Pricing of music sharing and subscription services

4. Valuation of platform income dividends

There are several types of assets in the Mozik ecosystem:

§ Assets endorsed by music copyright on the platform

§ Community assets based on traffic such as KOL and top influencers

§ IP assets with influential and actual value



The Mozik system supports the management and issuance of the above-mentioned

assets. At the same time, the injection of these assets creates value for the Mozik platform.

The platform becomes an aggregation platform and obtains value by providing basic

services. Mozik issues MOZ (Platform Equity Coin) to support investors, fans, creators and

participants to obtain the rights and interests of the platform, and holding a certain amount

of MOZ allows users to receive platform dividends.

1. The stabilizer of the Mozik ecological co-construction system can obtain MOZ

with corresponding value assessment by holding and issuing their respective

copyright assets. Some MOZ can be staked on the platform, while some can

be gradually exchanged into MOS to obtain cash to support the user’s own

music creation while acquiring corresponding platform dividends. The

dividend ratio and method take into account the user’s own music

subscription sales income, copyright authorization income, and traffic

contribution.

2. The Mozik Foundation will also provide a certain percentage of MOZ as a

content platform to motivate and support fan operations for participating

creators, and use MOZ to incentivize corresponding content creation or fan

rewards.

4.2 NFT assets and exchange

IP content assets and users are the most important assets of the community.



Community applications are the links of the Mozik platform. Each app and community

project is relatively independent. They have their own operating mechanism, marketing

system, user organization, and content operation methods, which constitute an

independent economic cycle. Only with more and more active community projects on the

Mozik platform can it truly become an economic ecosystem and platform. Therefore,

Mozik strongly supports the traditions with users and potential. Community projects

provide technical and blockchain operation support, while independent projects can be

issued as project assets which have their own independent operation methods. These

projects can issue project assets on the Mozik platform, and users, fans, creators, and

operators share project asset revenue.

Mozik is committed to building the world’s largest music NFT asset distribution and

exchange market. Through Mozik’s own traffic and IP operations, it can also support the

NFT assets of other music platforms. The platform will support the issuance and exchange

of NFT assets through multi-chain smart contracts:

l Music rights NFT

l Auctioning of music rights

l Music crowdfunding

l Offline concerts

l Celebrity NFT assets

Music stars have great appeal, but their traffic is difficult to directly capitalize

on in a conventional way. The corresponding celebrity derivative collections will only

bring collections to fans. Mozik transactions support the issuance and exchange of

various assets of celebrities.

l Star cards

l Star snapshots (star moments)

l Star online meets

l Fan traffic assets

Fan traffic and contributions constitute the largest economic effect of fans and

the platform. Fans are both contributors and participants, but it is difficult to share the

income. Mozik will define traffic NFT assets. Any fan participating in the contribution



can get part of the income from the assets. NFT can be segmented, and users can sell,

obtain advertising traffic and promotion and other income, and contributors and

platforms can benefit from it.

l Fan meetings

l Traffic monetization

l Auctioning of music derivatives

Staking issuance model

In order to solve the value and credit of the community project at the initial issuance,

assets can be raised by staking and through a certain proportion of MOZ, the MOS

obtained according to the operation situation can gradually release the income of the IP

holders, which can provide a certain flow of support to creators, and while staking a

certain proportion of assets they can provide higher credit, which is conducive to the joint

lock-in of interests of the platform and project parties, and reduces the issuance of

worthless tokens. Mozik hopes that more valuable and user-traffic community projects on

the platform will join in the future so the value of tokens can be truly reflected.

4.3 Content rewards The Mozik Foundation will set up a development fund for the ecosystem to encourage

professionals and creative organizations to make original creations. Small and medium

content communities and KOLs will be encouraged to stay on the platform, which will

enrich platform creation with more users and build a multi-win mechanism for content

application platforms, consumers, creators, and KOLs.

Participating users will be incentivized to publish original works and relevant

incentive models and mechanisms will also be set up (refer to section 4.3 for details) to

encourage particularly outstanding works.

1. Contribution rewards

Different rewards for users participating in sharing will be provided according to

differences in the types of content provided, as well as relevant rewards according to the

length and category of different content.

2. Universal rewards



Creators who participate in the development of community content are given a certain

percentage of token rewards for their creative content. One is the community’s own token

reward, and the platform will also give a certain percentage of rewards. Rewards will be

evaluated based on the creator’s historical data. The credit and level rewards new content

creation. The higher the level, the better the historical transaction amount and credit

appointment, and the greater the proportional coefficient.

3. Differential rewards

The community and platform will delay the rewards based on a comprehensive

evaluation of the created content, such as differentiated rewards based on the user’s

participation activity, content classification, evaluation, and scoring. At the same time, in

order to avoid cheating behaviors such as swiping orders, a certain threshold is set for

different likes and evaluation behaviors, and a differential mechanism is introduced in

statistics and evaluation. For those who pledge or invest a certain amount of tokens, the

evaluation adjustment coefficient is higher, while these tokens stake for a certain period of

time and then are returned to fans, content creators, and community platforms at a certain

proportion.

4. Trading rewards

For created content, the platform performs corresponding copyright registration and

protection services. Content creators can authorize IP and sell the copyright on the trading

market, and obtain income through transactions. In addition to gaining profit, content

creators can pay part of it to their fans.

Fan reward token=

Among them, A is the level of fans, Fi is the user’s activeness at the time, λ is the

adjustment coefficient of their respective communities, K is instant incentives such as KOL

or Internet celebrities, and X is the number of users referred by the platform.

Rewards for creators are based on factors like the quality of the creator’s content and

user reviews.

Creator rewards token= WR* K *α

- α is the type compensation value, such as video 1.2, text 0.8, etc.

i1* * +Sum um

n

iA F l

=å （K）+S （X）

å



- K is a single user community reward

- WR is the content score, and the Bayesian average method can be considered

Weighted average (WR) = (v ÷ (v+m)) × R + (m ÷ (v+m)) × C

R = Average score of the work

v = Total number of votes for the content (votes are made through tokens, the

number of votes for a single person is limited)

m = Minimum number of shortlisted votes

C = The total average score of all works TT (initial tentative 5.0)

At the same time, the following types of behaviors will be penalized accordingly:

1） Publication of illegal or harmful information

2） Malicious click farming

3） Misappropriation or infringement of the copyright of others

Penalties can lower the credit rating of creators, deduct rewards for users, while

rewarding tokens to whistleblowers or corresponding fans to purify the content space.

1. Professional Incubation and Cooperation

Mozik further encourages professional online music creation and sharing. For online

music rights produced at a professional level, it can cooperate with the foundation for

professional incubation. The foundation supports independent reward funds for

incubation and has launched an online platform content trading system. Related assets can

also be issued according to the needs of the project, such as STO or other financial issuance.

2. Sharing and Referring Rewards Content creators and evaluators share and refer traffic. For different users and newly

added users of works, referrers can obtain certain rewards.

4.4 Cooperative node construction

As a blockchain music consensus project, Mozik plays an active role in community

and public governance. In the future, the economic decision-making and community

project governance of the project will be carried out through the blockchain consensus

method, and more groups and individuals will be encouraged to participate in project

autonomy through the development of nodes. In China, Mozik will develop cooperation



nodes and city partners through staking. Meanwhile, partners will participate in project

decision-making and co-governance, and share project benefits. They will also support

offline activities in various cities and develop music-loving communities in various

regions.

Application communities or individuals participate in the bookkeeping node by

staking MOZ. In order to better support community projects in related fields, Mozik

supports the use of the following two models to participate in node construction.

1. Interchange model

In the initial stage community projects and platforms exchange token staking models

to establish nodes and participate in community governance with the aim of attracting and

supporting cultural and creative communities of strategic significance.

2. Staking ranking model

In the later stage, as the scale of the platform and users increase, newly joined

communities can become nodes through the staking ranking model. The blockchain

platform automatically selects nodes according to the staking MOZ ranking, while

enabling community projects as nodes to enter the MOZIK ecosystem. It is a model that

allows the platform and community projects to grow together.

4.5 IP rights crowdfunding

The community encourages creators to create excellent digital cultural content. For

some head IPs, after they have a certain fan base and dissemination value at the

development stage, creators need to continue to operate and incubate to fully realize the

value of IP, which can then be authorized and disseminated. As well as gaining benefits

from the transfer, for creators and operators, continuous investment and operation are

required. The Mozik platform supports the incubation of such IP products — crucially, by

using future earnings as collateral for crowdfunding. Creators can use IP and future

earnings as collateral to issue corresponding NFT token through the Mozik platform, and

their IP fans can serve as consumers or investors, thereby sharing in IP earnings.

The Mozik platform provides copyright protection, rights staking, token supervision,

and NFT token issuance. It also supports creators in promoting assets, and provides asset



staking and management methods to protect the rights of fans. These pre-constraints and

conditions can be managed through the issuance of smart contracts, making the issuance

process and the use of funds more transparent and safe. Mozik also supports

corresponding funds to incubate high-value IP.

4.6 KOL incubation

The development of the information age has witnessed the advent of the fan economic

model, which the entertainment industry and an increasing number of companies rely on

for improved development. In the field of cultural creation and community projects, KOLs

and Internet celebrities are the key players in the community. They can create rich and

popular videos, text, comments, pictures and other content, attract a large number of fans,

and enjoy high levels of traffic. They also drive the traffic of the entire community, so each

community will focus on cultivating its own KOL and influencer. All the major Internet

platforms are currently developing their own KOLs and influencers, which brings traffic

through the fan economy, thereby creating content and facilitating derivative marketing.

Although it is intrinsically a micro-circular economy, platforms, fans, and influencers need

mutual benefits and joint support to enable coordinated development. The traditional

model of personal, platform and Internet celebrity data is not transparent, financial

settlement is not clear, and mutual trust is lacking. There are also hidden risks in the

Internet celebrity economy and it somewhat restricts the development of the Internet

celebrity economy. Through the use of blockchain technology, Mozik will share data and

make it transparent so the value of Internet celebrities can be quantified and traded.

Internet celebrities will also be able to issue their own micro-tokens on the platform. The

Mozik platform provides functions such as issuance management and trading. Internet

celebrities do not require a dedicated technical team, but merely need to manage their own

content. Through their own micro tokens, fans can receive rewards and consume content.

The Mozik platform provides underlying technical support and issuance

management, as well as the exchange of online celebrity certificates and platform tokens.

The economic ecology of Internet celebrities is generally relatively small, transactions

and traffic are fairly limited, and the scope is mainly concentrated between fans. In order



to improve the corresponding liquidity, a modified Bancor mechanism is adopted for the

token issuance of Internet celebrities (see the Mozik Technical White Paper for details).

Through automatic transaction, exchanges between token and platform token can be

carried out.

5 Application ecosystem

The Mozik community is the most important part of the Mozik ecosystem. The core

work of Mozik is to form a community consensus to encourage online music creators,

enthusiasts, traders, and blockchain token investors to participate in the Mozik digital

copyright creation and trading ecosystem. To this end, Mozik promotes community

construction through the online music, copyright trading, and fan communities, while

cooperating with third parties to build and share corresponding community resources.

5.1 Online music community Mozik will build an online music community, which boasts the following main

functions.

1. Online music subscriptions

The subscription service provides online music subscription and appreciation

services for users around the world. Users can join with MOS and order music

services on a monthly or volume basis.

2. Online music sharing and distribution

With our online music sharing service, users can promote and share music. They

can also refer purchases and obtain rewards for doing so.

3. Online music rankings

Through music rankings, corresponding lists are published regularly, user

evaluation and scoring mechanisms for online music are formulated, and a fair and

just music evaluation mechanism is built through marketization and community-

based means wherever possible.

4. Online concerts

Online concerts are broadcast live, through which operational innovation is

achieved.

5.2 User and fan communities

Mozik is based on the economic ecosystem in the cultural and creative field and its



chief aim is to bring loyal users and fans together. A diverse community made up of creator

communities, fan clubs, and investor communities will be built in the Mozik ecosystem.

Mozik also combines several communities in an organic way and through technical

platforms and various activities, while making use of the application to jointly maintain

each community, serve users, and increase levels of engagement and activity.

l Creator communities

l Fan communities

Fan communities can be classified in different ways depending on their innate

characteristics. The platform will establish independent communities for these different

kinds of fans to communicate and interact with each other.

l Investor communities

IP asset transactions and digital asset transactions will inevitably attract a large number of users. To meet this need, the Mozik system provides a place for everyone to communicate with each other. The above-mentioned communities are integrated with each other. Mozik cooperates with various application community operators to provide users and fans with a communication platform that connects everyone through online and offline activities.

5.3 Digital asset ecosystem Mozik cooperates with creative communities around the world. The Mozik ecosystem

will eventually form a comprehensive digital asset ecosystem through content, user

gathering, and fund withdrawals. Assets in the system can be exchanged and circulated

freely, and valued based on the content they carry. The issuance and circulation of these

assets can promote the development of various applications, increase the engagement of

system users, and improve the stability of the entire ecosystem.

Online music assets are assets issued with IP copyright and the corresponding

proceeds.

KOL assets are assets created by Internet celebrities within their own communities

and economic system.

The Mozik platform builds a trading system that organically links different types of

assets and enables different kinds of users to communicate with each other. It also allows

for different financial instruments and products to derived based on different assets.



6 Project planning

The Mozik project is promoted both through the product and the business, while

the product cooperates with the commercial development to build a platform and improve

its functions.

6.1 Token distribution The total amount of the Mozik platform token MOZ is set at 1 billion, and the

distribution is as follows.

1. Core team reserve ratio: 12%, locked on mainstream exchanges for 18 months

2. Foundation reserve ratio: 20%, used for community and project operations

3. Ecosystem reward ratio: 25% used for the construction of the ecosystem,

community project rewards, fan rewards and urban partners

4. Content mining: 25% used for content mining to encourage creators to

contribute content and fans to contribute traffic

5. Early investors: 18%

6.2 Business plan October 2020: Project establishment and preparation.

First Quarter of 2021: Official launch of project and issuance of the platform token.

Second Quarter of 2021: Introduction and development of ten music producers, more

than 2,000 users, and various domestic communities.

Third Quarter of 2021: Introduction of multiple overseas projects, formation of



domestic and international creative communities and fan communities, and carrying out

of offline activities.

Fourth Quarter of 2021: Formation of a unified market expansion mechanism for entry

and issuance, implementation of platform model and application platform co-construction,

and formation of a community-based governance model.

6.3 Product planning Fourth Quarter of 2020: Design of system architecture.

Second Quarter of 2021: Release of wallet function. Construction of music sharing

platform. Release of IP NFT asset management.

Third and Fourth Quarter of 2021: Improvement of underlying platform, including

optimization of music asset management, distribution, and fan community functions.

Improvement of IP asset governance.

First Quarter of 2022: Release of Mozik governance function, which mainly includes

basic platform and chain community transfer and co-governance. Enhancement of asset,

content, and user community functions.

7 About the team

7.1 Core team

Co-founder & CEO Li Jiechu

Former Chief Operating Officer of Rolling Stone Mobile Digital Music

Former Deputy General Manager of the New Media Center at Beijing News Media

15 years in the Internet and mobile Internet industries

Overseas (Hong Kong/Singapore) work experience

First generation of digital music professionals in China

In 2010, co-created China’s first scene music app "You Listen"

Later, it was wholly acquired by Rolling Stone Mobile for $21 million US dollars



Deep understanding of music culture

Fully understands users' music consumption needs

Rich Internet, music industry, entertainment industry resources

In 2009, led the team to establish and operate iPhone and iPad client side for The

Beijing News

Assisted in The Beijing News’ online business digitization and mobile Internet

transformation

Cui Yu

Co-founder & CTO

Former Development Director

at Rolling Stone Mobile

Han Jinwu

Co-founder & COO

Apple Certified Technology Supervisor



Zhang Miao

Copyright Content Officer

2016-2018 National Top Ten Producers

7.2 Consultants

Li Jing Strategic Advisor Former Chairman & CEO of Rolling Stone Mobile Wang Yuehua Angel Investor Partner of Deding Innovation Fund Famous Blockchain Expert and Investor Chen Xi Strategic Partner Former Agent of Zhang Liangying, Current Artist Director at Sony Music Represented Su Yunying, Xu Jun, Gong Ge, Huang Qishan and other popular celebrities



7.3 Cooperative Partners

8 Risk and legal compliance

8.1 Risks and exemptions n This document is only used to convey information about specific topics for those

actively requesting information about particular projects, and does not constitute

investment advice, nor is it any form of contract or commitment.

n Participants who participate in the Mozik token distribution plan understand and

accept the risks of the project and are willing to personally bear any consequences.

n The project team does not promise any return, and will not bear any direct or



indirect losses caused by any project.

n The Mozik token involved in this project is an encrypted digital code used in the

transaction link, and does not represent project equity, income rights, or control

rights.

n Due to the many uncertainties in the digital currency itself (including but not

limited to the general environment of digital currency supervision in various

countries, industry incentives and competition, and technical loopholes in the

digital currency itself), we cannot guarantee that the project will be successful as

there is a certain risk of failure, and the token of this project also has the risk of

zeroing.

n Although the team will work hard to solve the problems that may be encountered

during the project promotion process, there will still be policy uncertainties in the

future. Support and participation must be given rationally on the premise of fully

understanding the risks of the blockchain.

8.2 Legal compliance The Mozik team commissioned a credible third-party organization to establish a

foundation entity in Singapore. All operations shall comply with local laws, regulations

and regulatory requirements. If there is a need to seek legal advice, it needs to be confirmed

by a local lawyer.

Mozik Foundation insists on the non-profit nature of its operations. Users who

participate in the Mozik community will have the right to further hold or waive the Mozik

token in the future, regardless of whether they have obtained it. At the same time, holding

the holder means that the holder has the right to consume and use smart contracts on the

Mozik blockchain platform. Buyers should understand that within the scope of the law,

Mozik Foundation does not make any express or implied guarantees and transfer of

benefits. In addition, the purchaser should understand that there is no return or refund

after purchasing the Mozik token.

When a dispute arises, the parties concerned shall resolve it through negotiation in

accordance with the agreement. If it cannot be resolved through negotiation, it can be

resolved by legal means.

Documents

Mozik White Paper - moziknft.com