Opulous Tech Update: May 2021
Opulous provides the technology to connect investors and music fans with their favourite artists, as well as enjoy rights and royalties associated with an artists’ copyright through NFT technology, smart contracts and blockchain within a decentralised architecture.
Our development team is hard at work implementing the solutions necessary to make the Opulous vision a reality — and we have plenty of exciting tech updates to share with you.
Opulous music NFTs comprise the sale of embedded, fractionalised right to royalties from music copyright assets, through the associated meta-data of that music copyright.
The following data is unique to each NFT:
- Value of the rights to collect royalties linked to the copyright asset.
- Monetary details of the royalty earnings involved.
- NFT Ownership Party information.
- Other metadata (artwork, audio tags etc)
Opulous will receive and collect royalty revenues and fiscal deposits from DSP providers for each NFT.
For example: Spotify, Apple Music and YouTube pay those with the right to receive the corresponding fractional right to receive royalties instead of the record label or publishing entities.
This automatically facilitates the disbursement of royalties funds proportionally among all NFT-based owners (a form of split payments).
Opulous can not only calculate and evaluate the value of Music Copyrights and the associated royalties involved, but also facilitate the payments of royalty earnings towards the Opulous platform directly without relying on the copyright holders themselves.
Opulous will then redistribute those royalties payments to the NFT owners in $OPUL tokens.
Opulous uses a series of Smart Contracts to power its NFT launchpad. This allows Opulous to be completely decentralized and independent of any single institution.
With Smart Contracts, Opulous remains transparent, decentralized, legally compliant as regards IP and copyright law and fair to the users of the platform and those who purchase copyright-backed assets on it.
Here’s an overview of how Opulous Smart Contracts work to share royalty earnings from a specific copyright after the sale of NFTs.
1. A Copyright Owner agrees to sell a share of rights to royalties:
- Opulous records the details and meta-data supplied by the copyright owner with corresponding royalties. This information is then fractionalised according to the amount of NFTs issued against the total amount of copyright percentage plus the corresponding royalties which the artist puts up for sale.
- Once the total sale is approved for the asset in question, artwork is provisioned and prepared for the NFT tokens.
- Each token is minted, artwork is added, audio data etc is added, and the metadata corresponding to the copyright and royalties information divided by the fractional amount it represents as a discrete asset, is also added and embedded on the NFT.
- The NFT is minted and tagged with an identifier and an embedded URI pointing any purchaser to the Opulous platform.
2. Fans & investors entering the Opulous NFT platform:
- Purchaser accesses the NFT platform and is prompted to connect their crypto wallet. The user then connects their wallet and undergoes KYC.
- IF KYC is passed, the wallet is whitelisted as approved for purchasing NFTs with their copyrights, and for royalties payments on any NFT purchase.
- After KYC, the Opulous platform updates the whitelist with the wallet information.
3. Purchasing of music NFTs via Opulous
- Payment in fiat is processed via fiat (Opulous off-ramped) exchange-based bridging services, and payment button options driven by APIs (Stripe).
- When a user signs up or logs into the Opulous platform and wallet address is checked against the whitelist and the TX ID for that NFT purchase.
- User details and NFT details are passed into the user’s Opulous account, including audio and rights to receive royalty payments approval.
- Opulous collects the ‘plays’ info over time from data points and accumulates it in the user account against each NFT.
- A smart contract is periodically updated with the incremental revenue per token, which is paid out in $OPUL in relation to the monetary value accrued for plays over that period of time.
- This smart contract digitizes the collateral assets, and monitors the real-time value of the digital assets according to Opulous data points for plays (Spotify, YouTube, Apple Music etc).
- The user’s Opulous account — which holds rights to receive royalties and actual revenue information for royalties — by then has updated the corresponding Smart Contract and allows it to add $OPUL tokens to the customer’s account and wallet in the correct amounts for each NFT owned by that user account.
After the OPU Token Generation Event, OPU will be available on Decentralised Exchanges, and the market price will be determined by the price feeds that are provisioned on the DEX in question.
When the OPU token is listed on Centralised exchanges, then the same mechanisms regarding price feeds to determine market price at any point in time will of course be used to determine market rate for the monetary value of the OPU token on that centralised exchange, which will be subject to the usual ebb and flow of the token and its price within the market as a whole.
When royalties are calculated within the Opulous platform for a given NFT over a certain time period, the monetary value of the royalties on that specific user-owned NFT will be calculated in terms of monetary value in USD, and the requisite amount of OPU tokens provided to the account of the owners of those specific NFTs.
The amount of OPU added at the time of royalties payment to be added, is directly calculated and determined by the ratio of the royalty amount (in USD) as expressed by the market price of OPU at that time.
Pricing oracles will be integrated through technology partners to ensure monetary prices are accurate at all times.
For example, if total royalties = $35, and OPU = $5 each, 7 OPU will be added.
So, just as the number of plays changes from day to day for royalties accrual against the NFT etc, the value of OPU as a token changes also in accordance with market prices at the time, despite the calculation for the numerical value of the royalties still being in USD.