How It Works

A comprehensive guide to understanding the AceSteps platform.

The Journey

┌─────────────────────────────────────────────────────────────────┐
│                     THE ACESTEPS JOURNEY                         │
├─────────────────────────────────────────────────────────────────┤
│                                                                  │
│   CREATE         OWN           SHARE          EARN              │
│     ↓             ↓              ↓              ↓               │
│  ┌─────┐      ┌─────┐       ┌─────┐       ┌─────┐              │
│  │ AI  │  →   │ NFT │   →   │Token│   →   │ $$$│              │
│  │Music│      │Mint │       │Trade│       │Revenue│            │
│  └─────┘      └─────┘       └─────┘       └─────┘              │
│                                                                  │
│  Text prompt   Blockchain    Uniswap V4    Ad revenue           │
│  to audio      ownership     trading       + appreciation       │
└─────────────────────────────────────────────────────────────────┘

Stage 1: CREATE

AI Music Generation

Anyone can create professional music using text prompts:

"chill lofi beat with rain sounds and soft piano"

What Happens:

1. Your prompt is sent to ACE-Step AI (3.5B parameter model)
2. AI generates unique audio in ~4.5 seconds
3. You preview and refine until satisfied
4. No musical training required

Why This Matters

• Democratized Creation - No expensive equipment or training needed
• Copyright-Free - 100% original, AI-generated content
• Apache 2.0 Licensed - Full commercial rights

Stage 2: OWN

NFT Minting

When you save a song, it becomes an ERC-721 NFT:

Your Song → IPFS Storage → Metadata URI → NFT Mint
               ↓                ↓             ↓
           Audio file     JSON metadata   Token ID

What's Stored:

On-Chain	Off-Chain (IPFS)
Token ID	Audio file
Owner address	Cover image
Metadata URI	Song metadata
Audio hash	Prompt used

Signature Verification

Only platform-generated AI music can be minted:

Backend signs: hash(userAddress + metadataURI + audioHash)
Contract verifies: ECDSA.recover() == platformSigner

This prevents:

• Uploading copyrighted music
• Piracy and infringement
• Fraudulent minting

Stage 3: SHARE

Publishing

Making your song discoverable:

1. Select song from Library
2. Click "Publish"
3. Song appears on platform
4. Play tracking begins

Tokenization (Enable Trading)

Convert your NFT into tradeable tokens:

┌─────────────────────────────────────────────────────────────┐
│                    TOKENIZATION FLOW                         │
├─────────────────────────────────────────────────────────────┤
│                                                              │
│   NFT                    SongVault                          │
│    │                         │                               │
│    └──── Transfer ───────────▶│                              │
│                               │                               │
│                               ▼                               │
│                     Deploy SongToken                          │
│                     (100,000 tokens)                          │
│                               │                               │
│              ┌────────────────┼────────────────┐              │
│              │                │                │              │
│              ▼                ▼                ▼              │
│         Creator          Uniswap V4      Trading             │
│         80,000             20,000         Begins!            │
│         tokens             tokens                            │
└─────────────────────────────────────────────────────────────┘

Why Permanent Lock?

Due to AMM mathematics (x * y = k):

• Price increases exponentially as tokens decrease
• Acquiring 100% requires infinite ETH
• This is a feature, not a bug

Benefits:

• Permanent liquidity
• Continuous trading
• No rug pulls possible

Stage 4: EARN

Revenue Sources

For Non-Tokenized Songs:

Source	Creator	Platform
Ad Revenue	80%	20%

Payment: Direct to wallet (ETH/USDC)

For Tokenized Songs:

Source	Distribution	Platform
Ad Revenue	80% → Pool	20%
Swap Fees	LP Position	1% per swap

The Revenue Hook

Uniswap V4's donate() function adds revenue to pools:

Ad Revenue Collected
        ↓
   80% to Pool via donate()
        ↓
   ETH added to reserves
        ↓
   Token price increases
        ↓
   All holders benefit

Value Appreciation Example

Initial State:
  Pool: 1 ETH + 20,000 tokens
  Price: 0.00005 ETH/token

Revenue Distribution (0.5 ETH):
  Pool share: 0.4 ETH (80%)

After donate():
  Pool: 1.4 ETH + 20,000 tokens
  Price: 0.00007 ETH/token (+40%)

Revenue Flow Visualization

                    ┌────────────────────┐
                    │   Ad Revenue       │
                    │   from Streaming   │
                    └─────────┬──────────┘
                              │
              ┌───────────────┼───────────────┐
              │               │               │
              ▼               ▼               ▼
         80% Share       20% Share       1% Swap Fee
              │               │               │
              ▼               ▼               ▼
    ┌─────────────────┐ ┌─────────────┐ ┌─────────────┐
    │ Uniswap Pool    │ │  Platform   │ │   Platform  │
    │ (Token Holders) │ │  Treasury   │ │   Revenue   │
    └─────────────────┘ └─────────────┘ └─────────────┘
              │
              ▼
    Token Price Increases
    (All holders benefit)

The Complete Picture

For Creators

1. Create - Generate AI music with prompts
2. Save - Mint as NFT (owned in wallet)
3. Publish - Make visible, start earning
4. Tokenize - Enable trading, get 80% of tokens
5. Earn - Revenue flows continuously

For Fans/Investors

1. Discover - Browse trending songs
2. Listen - Stream like any platform
3. Invest - Buy tokens of songs you believe in
4. Earn - Song popularity → revenue → price rise
5. Trade - Sell anytime on Uniswap

Why AceSteps is Different

vs Traditional Music Industry

Aspect	Traditional	AceSteps
Revenue Share	Label: 80%+	Creator: 80%
Entry Barrier	High ($$, skills)	Zero
Ownership	Label owns	Creator owns
Fan Investment	None	Direct

vs Other Web3 Music Platforms

Feature	Others	AceSteps
Copyright Risk	High	Zero
Content Moderation	Required	None needed
Decentralization	Partial	True
Revenue Model	Manual	Automatic

Related

• Tokenomics
• FAQ
• Architecture