NIMs ecosystem has a lot of unique features and this time we would like to focus on NIM Utility Tokens that serve specific tasks within the system. The purpose of Utility Tokens is to access content and support applications that have access to those services – like extended reporting or Content as a Service (CaaS).
Content will always have a value defined by the royalties the holders of copyright received. The NIM ecosystem provides maximum efficiency to handle the content registration, licensing and transactions generated by streaming in today’s music business.
NIM ecosystems architecture
Traditional systems use the very energy-demanding Proof of Work system to verify transactions. The NIM ecosystem instead uses Proof of Content – a version of the Proof of Stake architecture – that is much more cost- and energy-efficient. Members, also known as validators, can participate after depositing their content as a stake.
Only specific pre-defined validators are part of the private subnet and the content is visible only to those. Validators can be both holders of copyrights and Digital Service Providers. The subnet model allows validators to only concern themselves with their own transactions which reduce their burden.
A subnet manages its own membership and it may require that its constituent validators have specific properties. NIMs subnet architecture makes regulatory compliance management. The subnet will require participants (validators) to meet the requirements mentioned above.
These can include:
• Location in a given country.
• Must pass KYC/AML check.
• Must hold a specific license granted to copyright holders
Decentralised services in the ecosystem
The NIM ecosystem consists of several decentralised services designed for specific purposes. These services are represented by specific value-added tokens.
Royalty Tokens (ROY)
Royalty Tokens can be described as “credit tokens” with intrinsic value as asset-backed tokens. ROYs are redeemable for fiat (USD, Euro etc.) or the ecosystem’s native currency CREATIVES. Only the fiat are in escrow enabling the keeper (owner/administrator/investor) of Copyrights to convert ROYs at any time. ROYs have the same market value as the underlying fiat. Alternatively, ROYs can be converted into CREATIVES and the fiat in escrow will follow thereby balancing CREATIVES in liquidity and stability.
CREATIVES is a native currency offered by New Internet Media. Its value is based on the value of the royalties flowing through the services of the NIM ecosystem. CREATIVES is governed by New Internet Media and can be found in free trade on any approved exchange.
NIM Passive Income tokens (NIMPI)
NIMPI will have the US dollar as a reference value (royalties and transaction fee is paid in fiat) and carries the net value of transaction fees to pay those as dividends to holders of NIMPI (see earlier newsletters).
NIM Utility Token (NUT) for accessing services
NIMs Utility Tokens are designed for accessing NIMs services and in direct relationship to the content ingested. Holders of Copyrights (creators or administrations like CMOs/PROs) will have services for free, while DSPs and users of the services have to pay a network fee for access. This network fee is used for all services in the NIM ecosystem and the policy is designed for content owners operating in a private and protected environment. It’s counter-intuitive to charge a network fee for nano-payments like royalty payments or registration of content. Where ROYs can only be received by holders of Copyrights, NUTs can be obtained by exchanging ROYs to CREATIVES or bought with fiat or CREATIVES. NIM Foundation (DAO) governs NUTs through NIM Voting tokens (equivalent to NIMPI).
A much lower climate impact
Most NIM sub-chains allow for smart contracts and are an instance of the Ethereum Virtual Machine (EVM). However, we are determined to deliver more money faster with the most negligible impact on climate.
The Bitcoin network can conduct roughly five transactions per second for an energy cost per transaction of 830kWh. Ethereum can conduct around 15 transactions per second for an energy cost per transaction of 50kWh. CopyrightChain can conduct about 4500 transactions per second for an energy cost per transaction of 0.035mWh.
CopyrightID, CopyrightShares, CREATIVES and Royalty tokens
CopyrightID is proof that a legal entity has registered an intangible asset representing copyright or intellectual property right. CopyrightShares are non-fungible assets of that CopyrightID, and Royalty tokens are fungible assets that represent dividends in the form of royalties that a CopyrightShare produces. CREATIVES are in direct relationship to Royalty tokens. CREATIVES are the only means of payment for CopyrightShares (besides fiat) and the only way to exchange Royalty Tokens for any other currency (besides fiat).