Song Tokens
When trading is enabled, songs become fractionally ownable via ERC-20 tokens.
What are Song Tokens?
Song tokens are ERC-20 tokens that represent fractional ownership of a song:
- 100,000 tokens per song (fixed supply)
- Tradeable on Uniswap V4
- Value backed by locked NFT and revenue
Token Distribution
| Recipient | Amount | Percentage |
|---|---|---|
| Creator | 80,000 | 80% |
| Uniswap Pool | 20,000 | 20% |
| Total | 100,000 | 100% |
How It Works
1. Enable Trading
Creator chooses to tokenize their song.
2. NFT Locked
The NFT is permanently transferred to the SongVault contract.
3. Tokens Minted
100,000 ERC-20 tokens are created.
4. Distribution
- 80,000 tokens → Creator wallet
- 20,000 tokens → Uniswap V4 liquidity pool
5. Trading Begins
Anyone can buy/sell tokens on Uniswap.
Token Value
Token value is determined by:
- Initial price - Set by first buyer
- Trading activity - Supply and demand
- Revenue - Ad revenue adds ETH to pool
Benefits
For Creators
- Retain 80% ownership
- Immediate liquidity
- Revenue from trading fees
For Fans
- Invest in music you love
- Share in success
- Liquid marketplace