Tokenization Overview
AceSteps uses a dual-token system for song ownership and trading.
Token Types
ERC-721 (Song NFT)
Every song minted on AceSteps is an ERC-721 NFT representing:
- Original ownership
- Metadata and audio hash
- Publishing status
- Revenue rights
ERC-20 (Song Token)
When trading is enabled, an ERC-20 token is created with a fixed supply of 100,000 tokens per song.
Per-Song Token Distribution
| Recipient | Amount | Percentage |
|---|---|---|
| Creator | 80,000 tokens | 80% |
| Uniswap V4 Pool | 20,000 tokens | 20% |
The Tokenization Flow
NFT → Permanently locked in SongVault
↓
100,000 tokens minted
↓
80,000 tokens → Your wallet
20,000 tokens → Uniswap V4 pool
↓
Trading begins!
Once you tokenize your song, the NFT is permanently locked in the SongVault. This action cannot be reversed. Make sure you understand the implications before enabling trading.
Initial Pool State
When trading is enabled, the Uniswap V4 pool is initialized with:
- Token: 20,000 SONG_TOKEN
- ETH: 0 (single-sided liquidity)
- Starting Price: Near zero (organic price discovery)
This single-sided liquidity approach allows the market to organically discover the song's value based on demand.
Why No Unlock Mechanism?
The NFT cannot be unlocked once tokenized due to the mathematical impossibility created by Automated Market Makers (AMMs).
The AMM Math (x * y = k)
In Uniswap's constant product formula:
- As tokens are bought, the price increases exponentially
- Acquiring the remaining tokens becomes progressively more expensive
- To buy back 100% of tokens would require INFINITE ETH
This Creates Sustainable Value
| Benefit | Description |
|---|---|
| Permanent Liquidity | Pool always has tokens available for trading |
| Continuous Trading | Fans can always buy or sell shares |
| Long-term Value Appreciation | Ad revenue continuously adds ETH to the pool |
The locked NFT ensures that trading remains active forever, and token holders benefit from ongoing ad revenue being donated to the pool.
Ownership States
| State | NFT Location | Tokens | Tradeable |
|---|---|---|---|
| Minted | User wallet | None | No |
| Published | User wallet | None | No |
| Tokenized | Locked in Vault | Active | Yes |
Revenue Flow
- Non-tokenized: 80% to NFT owner, 20% to platform
- Tokenized: 80% to pool (all holders), 20% to platform