Initial Music Offer Academy

Every Thing you need to know about Music Offers

What is a Music Note

Understanding Music Notes: Music notes are intangible assets that fans can acquire to offer financial backing to their favorite artists. These notes are made available in conjunction with the release of the artist's music project. Based on the success of the project and in accordance with the PRS, the music notes mature, entitling the purchaser to a rebate or profit. This amount is subject the artist’s PRS so the amount is not gauranteed.

Functioning of Music Notes: Music notes function akin to bonds or rebates. If the artist's PRS increases, the value of the notes appreciates, potentially yielding a profit for the purchaser. Conversely, if the artist's PRS decreases, the notes could transition into a discount or an offering.

Understanding the Pure Reaction Score (PRS):

The Pure Reaction Score, or PRS, is a computational formula that hinges on the artist's most recent official streaming report and their highest recorded number of fans or followers. This equation involves dividing the artist's last 30-day streaming report for their latest release by their highest count of social media followers from a single platform (such as Facebook, Instagram, TikTok, etc.) under the artist's performance name (the account must be publicly listed by the artist’s stage name.)

Example for PRS, if an artist named John Doe has 1000 followers on Instagram, 800 on Facebook, and 975 on X, his PRS would be calculated by dividing his last 30-day streams by 1000.

If John Doe accumulated 500 streams in the last 30 days, his PRS would be 0.50, indicating roughly 50% of his followers streamed his latest release within the last past 30 days.

For example

If a fan purchases John Doe’s album, they receive the mp3 downloads of the music and 10 music notes for 10$. If they wish to buy an additional 10 notes (a book), the total cost would be $15, based on the value of each note at .50 cent. Music notes can only be sold in increments of 10. If John Doe releases a single, the purchaser would receive the single as an mp3 download and the book (10 notes), for a total cost of $5.50.

Example for Music Offer for John Doe (IMO)

John Doe's Initial Music Offering (IMO) presents an opportunity for fans to purchase his music notes at approximately $0.50 each. The quantity of available music notes is directly linked to the number of followers on John Doe’s Instagram, his platform with the highest following (1000 followers), resulting in 1000 music notes being offered for purchase, giving the IMO a face value of $500. This means the maximum amount of value John Doe’s music notes collectively, with his PRS at .50, is 500$.

If John Doe streams increase from 500 to 1000, then each music note value would increase from .50 to 1.00$ according to his new PRS. This would increase the value of his music notes by 50% from 500$ to 1000$ entitling the purchasers to a .50 cent profit per music note. This profit can then be redeem as cash when the notes are submitted for redemption after maturity.

On the contrary, if John Doe’s streams fall below 500 to 300, then each music note would only be worth .30 cent. The purchaser would still be able to claim the value at maturity through submission. However, since the new value is less what they paid, the redemption would act as a rebate instead of a profit.

ONLY PURCHASERS OF THE ALBUM ARE ALLOWED TO PURCHASE MUSIC NOTES.

Purchasers of music notes can choose NOT to redeem their notes and in this case the purchase go directly the artist as an offering. Buyers who choose this option can have a physical note sent to them as a collectors items and proof of purchase in supporting the artist. All offerings are tax exempted.

Purchasing Music Notes

To buy music notes, fans must purchase the artist's project (single EP, or album). The project are listed in the Grapetree Merch Store, are typically priced at 10$, while singles are priced at $5 (EP are specially price). All music purchases entitle the buyer to receive 10 music notes (referred to as a 'book'). Additional notes can be purchased at the artist’s current PRS value but only by groups of 10.

Redeeming Music Notes

All music notes bought during the IMO have a maturity date of 90 days, meaning they cannot be redeemed for three months. This is standard because most music streaming platforms do not report the streaming data for 90 days initially, then every 30 days afterward. Without official streaming data the artist’s PRS can not be calculated properly, which means the true value of each music note would be inaccurate.

Redemption of notes must be initiated by the buyer, if not, the notes will be considered an offering to the artist, and the music note coupon becomes an official certificate of ownership. Notes submitted for redemption will be executed at the artist’s current PRS, whether it has appreciated or declined in value.

Post Book Music Offers

Music notes purchased after the IMO are called “post books”. Post books must be held for a minimum of 30 days before they can be redeemed. Any project that has already released the music streaming platforms is consider a “post book”. Post books prices are based on the artist's unofficial PRS which means streaming data has begin to come, but the complete count is not official. Post books can be redeemed faster the books purchased during the IMO, but they usually more expensive and they are priced by incomplete data.

For example, if Spotify shows John Doe's album has received 250 streams after 15 days, then John Doe’s unofficial PRS is .75. The new value of his music notes would be $0.75 each.

Orders for post books must be opened with a project sale, the same as IMO books, yet, they mature faster. The risk in post books is they are usually more expensive. Also, any note redeemed before the initial 90 day period could possibly miss hidden unreported value. Any streaming count taken before the first 90 days will lack the full data.

Music Offers poses an unique opportunity to transform every fan, supporter, and purchaser into a promoter or marketing agent. Anyone who owns music notes has the ability to drive the price up by encouraging others to stream the music once it has been released to all the major platforms. Although music note owners own the music, streaming increases the artist’s PRS, which in turn increases the value of the music notes.

Overall this program is healthy for artists and industry. It encourages super fans to buy music from the artist, again, without interfering with the way they choose to listen to it. Fans can own the music and still stream it knowing every listen is adding to the artist's value. Also, IMOP provides an opportunity for super fans to tangibly take part in the success of any artist’s campaign. By owning music notes supporters can profit or rebate their purchase while keeping visible evidence that they had an effect on some of their favorite music artist's careers. For these reasons IMOP has the ability to revolutionize the financial aspect of the music business by driving sales and streams alike.