DEMU Protocol - Updating Music's Global Financial System

[GENERAL] Name and surname of main applicant

Session Cruz

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[GENERAL] Co-proposers and additional applicants

Randall Harmon - CTO

Armita Jalooli - CFO

Piotr Napierała - Full Stack / Smart Contract Developer

Viviek Patel - Head Of Marketing

Andrew Donavan - Artist Relations

[GENERAL] Requested funds in ada

200000

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

6

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

No

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

We'll develop the DEMU Protocol to offer on-chain & off-chain APIs for app developers to access & add licensable music, fostering a music ecosystem on Web3 with royalty settlement powered by Cardano.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

No dependencies

[GENERAL] Will your project’s output/s be fully open source?

Yes

[GENERAL] Please provide here more information on the open source status of your project outputs

Our project, the DEMU Protocol, will be partially open source initially. We plan to release the core protocol and smart contract code under the MIT License, ensuring transparency and fostering community contributions. This approach allows developers to freely use, modify, and distribute the code, promoting innovation and collaboration within the Cardano ecosystem. However, certain proprietary components, specifically those related to our unique algorithms and user interface designs, will remain closed source to protect our competitive advantage and business model until we reach product-market fit, after which we will become fully open source.

[METADATA] SDG rating

Here's a bullet-point summary of how DEMU aligns with specific Sustainable Development Goals of the United Nations:

SDG 8 (Decent Work and Economic Growth):

• Empowers artists with tools for direct control over their music and earnings.
• Ensures timely and fair royalty distribution, promoting economic growth for artists.
• Provides a platform for global payments, enhancing economic productivity in the music industry.

SDG 9 (Industry, Innovation, and Infrastructure):

• Introduces innovative solutions like smart contracts and decentralized storage (MUnode).
• Utilizes the Cardano blockchain, showcasing commitment to technological advancement.
• Connects fragmented music ecosystems, fostering a more efficient and sustainable music industry infrastructure.

SDG 10 (Reduced Inequalities):

• Connects artists from developing countries to global markets, reducing inequality.
• Democratizes access to the music industry, offering equal opportunities for success to artists regardless of their background.
• Addresses the challenges faced by artists in emerging markets, promoting inclusivity.

SDG 11 (Sustainable Cities and Communities):

• Facilitates access to a global market for artists, promoting cultural diversity and sustainable communities.
• Supports the preservation and promotion of diverse musical traditions, contributing to the cultural vibrancy of cities and communities.

SDG 12 (Responsible Consumption and Production):

• Promotes sustainable music consumption by decentralizing storage costs to end-users.
• Encourages responsible production and consumption patterns within the music industry.

SDG 16 (Peace, Justice, and Strong Institutions):

• Enhances transparency in royalty payments and music rights management.
• Contributes to building strong institutions by promoting fairness and equity in the music industry.

SDG 17 (Partnerships for the Goals):

• Fosters global collaborations and partnerships within the music sector.
• Utilizes technology to support sustainable development in the music industry, aligning with global efforts to achieve the SDGs.

DEMU's approach to leveraging blockchain technology for music rights management aligns with these SDGs by promoting economic growth, innovation, reduced inequalities, sustainable communities, responsible consumption, transparency, and global partnerships.

[SOLUTION] Please describe your proposed solution

Please watch our DEMU Protocol Whiteboard Deep Dive here:

https://youtu.be/6lNEriBRWAA

Our proposal focuses on the development of the DEMU Protocol, a blockchain-based music layer that streamlines music licensing and royalty distribution. The aim is to create an open source marketplace for artists, record labels, music-using dApps, and listeners, fostering new forms of music-related commerce.

The crux of our solution is the creation of on-chain and off-chain APIs that developers can seamlessly integrate into their applications. These APIs enable developers to access and contribute to on-chain libraries of licensable music and even propose new licensing use-cases. This opens up opportunities for developers in the music and music adjacent ecosystems, providing tools for creating new music outlets & revenue streams with the challenge of licensing music and paying royalties already solved. The auto-distribution of royalties generated by the Intellectual Property is powered by the Cardano blockchain.

When licenses are created, purchased, or used in downstream applications, the music creators will receive their royalties automatically. This addresses the complex and inefficient process of music licensing and royalty distribution, which has been a significant barrier to growth and innovation in the music industry & for tech companies.

Our solution also aims to attract new music creators, listeners, and ADA holders, as well as attract artists and record labels to Cardano. By resolving the problem of music licensing and royalty distribution, we anticipate accelerating the adoption of Cardano, even attracting developers and music projects from other blockchains.

Our API services will support search for music offered for a desired type of license (e.g., personal listening, performance for metaverse or regular-world spaces, curated in-game music, sampling or remixing), as well as fetching the curated, licensed or selected music for in-app use.

The uniqueness of our solution lies in its ability to simplify music licensing and royalty distribution. This not only enhances efficiency but also promotes transparency and fairness for all parties involved.

The beneficiaries of our solution are artists, record labels, music-using dApps, and listeners. Artists and record labels will benefit from a more efficient and transparent process of music licensing and royalty distribution. Music-using dApps will gain from the ability to easily access and add licensable music to their platforms. Listeners will enjoy a wider range of music and new forms of music-related commerce, as well as a direct relationship with the artists they support.

This solution is crucial to Cardano as it develops real world utility and demonstrates its potential. It also aids in attracting new users to the Cardano ecosystem, thereby promoting the adoption of Cardano. This will result in increased transaction volume, which will contribute to an increase in the value of ADA for all holders.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

The DEMU Protocol addresses the challenge of simplifying music licensing and royalty distribution by leveraging the capabilities of the Cardano blockchain. This solution will bring numerous benefits to the Cardano ecosystem, including:

• Providing Developer Tools and Infrastructure: The DEMU Protocol will provide a set of APIs that developers can use to incorporate music licensing and royalty distribution into their applications. This will make it easier for developers to build music-related applications on the Cardano blockchain, thereby attracting more developers to the Cardano ecosystem.

• Supporting Enterprise Development: The DEMU Protocol will provide a robust and scalable solution for music licensing and royalty distribution, which can be used by enterprise developers to build commercial projects. The protocol's focus on transparency, security, and efficiency aligns with what enterprise developers are looking for in a blockchain platform.

• Strengthening the Cardano Ecosystem: By enabling a wide range of music-related applications to be built on the Cardano blockchain, the DEMU Protocol will contribute to the diversity and resilience of the Cardano ecosystem. This will make Cardano a more attractive platform for developers and users alike.

• Promoting Open Source Development: The DEMU Protocol will be open source, encouraging more developers to contribute to the Cardano ecosystem and fostering innovation and collaboration.

In terms of impact, the DEMU Protocol will bring a new user base to the Cardano ecosystem, including artists, record labels, music-using dApps, and listeners. It will also drive a significant volume of transactions on the Cardano blockchain, contributing to the utility and value of ADA. Furthermore, by showcasing the capabilities of the Cardano blockchain in solving complex real-world problems, the project will help promote Cardano as a leading platform for blockchain-based solutions.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Our team at DEMU Protocol is uniquely positioned to deliver this project with high levels of trust and accountability. We have:

• Industry Experience: Our founder has extensive experience in the music industry, both as a touring artist and in the music business. He has worked for worldwide Hip Hop superstar Kanye West's Yeezy Season and has connections with Def Jam Records. This deep understanding of the industry is crucial for designing, implementing, and gaining adoption for a solution that meets the needs of artists and other music-related entities.

• Technical Expertise: The team includes experts in blockchain technology and smart contracts, which are key components of the DEMU Protocol. The DEMU team's CFO is ex-IOG, joining us full-time after discovering the project while working on its Tokenomics under IOG's Professional Services Group. This technical expertise ensures that the team can effectively leverage the capabilities of the Cardano blockchain to deliver a robust and secure solution.

• Previous Funding and Successful Delivery: We were funded in Fund 8 to build a "Decentralized Music Platform" POC. We successfully delivered on our promises, and that project has since evolved into two separate projects: The Jukebox Music Player dApp and the DEMU Protocol being proposed here. Here is a link to the demo of our Jukebox. This demonstrates our ability to manage funds properly and deliver on our commitments.

• Strong Community Engagement: We have a strong presence in the Cardano community and have been actively engaging with community members through various channels. We believe in transparency and regularly share updates about our progress.

• Partnerships and Collaborations: We have established partnerships with key stakeholders in the music industry and the blockchain space. This includes WorldMobile, FutureFest, SoundRig, Jam Galaxy, & Viper Records. These partnerships validate our work and provide us with valuable resources and support.

• Open Source Commitment: We are committed to making the DEMU Protocol open source. We believe in the power of open source to drive innovation and trust. As our repository of licensable content grows, we will gradually move towards open source, securing our project from those who might fork the code for their own purposes.

• Proven Track Record: Our team has a proven track record of delivering successful projects. For example, our founder has successfully launched and managed several music-related businesses. This experience gives us the knowledge and skills needed to manage funds properly and deliver a successful project.

Our unique combination of industry experience, technical expertise, previous successful delivery, strong community engagement, partnerships and collaborations, open source commitment, and proven track record make us well-suited to deliver this project with high levels of trust and accountability.

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

It's important to note that the work on these Milestones is current and ongoing. We are not waiting to begin.

Design of On-Chain and Off-Chain APIs (1 Month)

• Key Activities: Refining API requirements, developing music-license database and replication protocol, and developing first 3 licensing use-cases with partners.
• Outcomes: Functional data replication and established licensing requirements with first partners.
• Success Criteria: Completion of API design and successful testing of data replication.

APIs and Tokenomic Mechanisms Development (2 Months)

• Key Activities: Creating tier-1 API endpoints for Beta testing with early partners, Alpha testing token-based incentive mechanisms, and designing v1 content-protection protocols.
• Outcomes: APIs ready for development partners, risk mitigation for tokenized incentives and content protection.
• Success Criteria: Successful beta testing of APIs and tokenomic mechanisms.

Complete API Support and Verification Workflows (2 Months)

• Activities: Finalizing API development, creating protocol-level workflows for artist and content onboarding, and UI software development.
• Outcomes: Feature-complete APIs, capability for artist onboarding.
• Success Criteria: Completion of all API development and successful artist onboarding.

Node-Operations Protocol Development (2 Months)

• Activities: Developing protocol details for capacity, content redundancy, and contribution accounting; implementing content-protection and tokenomic mechanisms.
• Outcomes: Efficient content request allocation to network nodes, content serving verification, and credit system for serving end-users.
• Success Criteria: Successful implementation and testing of node-operations protocol.

Final Project Completion Report and Video Milestone

• Activities: Compiling a comprehensive report detailing the project's progress, achievements, challenges, and learnings. Producing a video that showcases the project's journey, impact, and future potential.
• Outcomes: A detailed report and a video providing a complete overview of the project, its impact on the Cardano ecosystem, and future directions.

[RESOURCES] Who is in the project team and what are their roles?

Project Team and Roles

Piotr Napierała

• Role: Full-stack Developer, specializing in Smart Contract Development on Cardano.
• Responsibilities: Leading the development of Milestone 3, focusing on Mobile Wallet Compatibility.
• LinkedIn Profile: Piotr Napierała

Randall Harmon

• Role: Chief Technology Officer (CTO) with 30 years of experience in Distributed Systems, Cryptography, and Blockchain Technology.
• Responsibilities: Leading the development of Milestone 4 (Credit Card Payment Integration) and Milestone 7 (KYC Integration).
• LinkedIn Profile: Randall Harmon

Session Cruz

• Role: Founder.
• Responsibilities: Overall project vision and strategy.
• LinkedIn Profile: Session Cruz

Viviek Patel

• Role: Head of Marketing.
• Responsibilities: Overseeing marketing strategies and initiatives.
• LinkedIn Profile: Viviek Patel

Andrew Donavan

• Role: Artists Relationship Manager.
• Responsibilities: Managing relationships with artists and overseeing artist onboarding.
• LinkedIn Profile: Coming soon

Armita Jalooli

• Role: Chief Financial Officer (CFO).
• Responsibilities: Handling administrative, finance & accounting, tokenomics, and fundraising duties.
• LinkedIn Profile: Armita Jalooli

Scott Kaufman (Partner, Sullivan & Worcester LLP)

• Role: Outside Legal Counsel.
• Responsibilities: Providing legal guidance and support for the project, including handling team contracts, artist attestation, Terms of Service, etc.
• LinkedIn Profile: Scott Kaufman

Recruitment Plans

• Additional Team Members: We plan to recruit additional team members as needed, focusing on specific skills that complement our current team's capabilities.
• Skills Sought: These may include additional development expertise, marketing and community engagement professionals, and operational support staff.

Engagement and Verification

• Engagement: All team members have been engaged and are committed to the project. We have direct lines of communication established, ensuring effective collaboration.
• Technical Group Engagement: We have engaged with relevant technical groups via channels like Discord or Telegram to ensure we have access to the necessary resources and expertise.
• Verification and Consent: All team members are aware of the public nature of this proposal and have consented to the inclusion of their information. 'Proof of life' verifications will be completed as required by Catalyst funding guidelines.

This team composition demonstrates a strong mix of technical expertise, industry experience, and legal and financial acumen, positioning us well to successfully deliver on the project's objectives.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

Milestone 1: Design of on-chain and off-chain APIs (1 month)

• Projected Cost in USD: $18,500 (40,081 ADA)

Milestone 2: APIs and Tokenomic Mechanisms

• Projected Cost in USD: $18,500 (40,081 ADA)

Milestone 3: Complete API Support for Partners, and Verification Workflows

• Projected Cost in USD: $30,000 (64,996 ADA)

Milestone 4: Node-Operations Protocol Development

• Projected Cost in USD: $25,000 (54,163 ADA)

Total Projected Cost

• Total in USD: $92,000 (200,000 ADA)

The team is committed to managing these funds with the highest levels of responsibility and transparency, adhering strictly to the outlined milestones and deliverables.

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

Development for the DEMU Protocol represents significant value for money for the Cardano ecosystem. This assessment is based on several key factors:

1. Below Industry Standard Rates: The budget is below with typical freelance rates and development costs in the tech and blockchain industry. The team comprises experienced professionals whose rates are consistent with the industry standards. We supplement this shortfall with equity. This ensures that the project attracts high-caliber talent necessary for its success.
2. Efficient Resource Allocation: The budget is meticulously planned to ensure efficient allocation of resources across all project phases. Each milestone has been costed to reflect the actual work and resources required, ensuring no wastage or unnecessary expenses.
3. High Impact Potential: The DEMU Protocol addresses a significant challenge in the music industry – simplifying music licensing and royalty distribution. By resolving this issue, the project has the potential to attract a new user base to Cardano, including artists, record labels, and music-using dApps. This broadens the utility and appeal of the Cardano ecosystem.
4. Return on Investment: The project is expected to drive a significant volume of transactions on the Cardano blockchain, enhancing its utility and value. This increased activity not only benefits the immediate stakeholders but also contributes to the overall growth and valuation of the Cardano ecosystem.
5. Scalability and Sustainability: The project is designed to be scalable and sustainable, ensuring long-term benefits for the Cardano community. The open-source nature of the DEMU Protocol encourages ongoing development and innovation, further enhancing its value proposition.
6. Strategic Investment: The investment in the DEMU Protocol is strategic, as it opens up new avenues for blockchain application in the music industry. This positions Cardano as a versatile and robust platform capable of addressing diverse real-world challenges.

The cost of the DEMU Protocol project is justified by the expertise required, the potential impact on the Cardano ecosystem, and the long-term benefits it promises. It represents a strategic investment in expanding the utility and appeal of Cardano, ensuring value for money for the community.