Gala Music Whitepaper
Last Updated: Oct 2nd, 2024
Version 3.0

Disclaimer
The purchase or sale of any token or digital asset involves risk. The information in this Whitepaper isprovided for informational purposes only, and we urge you to read this material carefully and ask us any
follow-up questions that you may have before joining the Gala Music platform. You should also consult
with your legal, accounting, or tax advisors regarding any applicable laws, rules or regulations that might
govern your purchase of the digital assets discussed in this Whitepaper or your participation in the Gala
Music platform, and regarding the tax or other financial implications of any purchase or sale. By yourpurchase or sale of any digital assets or tokens offered by Gala Music, you agree to assume the risks ofsuch participation, and Gala Music disclaims any liability thereof.

This paper outlines a vision and a set of goals that guide our journey, yet it's important to acknowledge that the details are subject
to change in response to shifting regulatory requirements and the practicalities of managing a decentralized ecosystem. While thelandscape in which we operate may evolve, adaptability is key and the aspirations detailed here represent the heart of what we are
striving to achieve together. This document should therefore be viewed as a reflection of our ambitions and a roadmap for ourcollective effort, albeit one that may adjust its course as necessary to navigate the ever-changing terrain of the blockchain world.
To get the most up-to date version of this document, please visit: https://music.gala.com/Gala_Music_Whitepaper.pdf

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Ecosystem Blueprint v3.02

Discover new talentElevate Artists
Gain exclusive access with $MUSIC

Summary
Blockchain based music has the potential to disrupt the entire music industry by providing accountability
and direct access to fans and artists. We believe that there is an absolute possibility for a creative
revolution as those that make music and those who enjoy it begin to connect and take control of theirexperiences, together.
Gala Music is a free-to-listen platform for music lovers. Through supporting artists and engaging with
their content, users can receive rewards and perks such as digital track collectibles, concert passes,
branded merchandise, artist access (such as meet and greets, video messages, VIP tickets, etc.), digital
goods and physical memorabilia.
Those who choose to buy music ‘Tracks’ and/or operate 'Gala Music Jukebox Nodes' (nodes that hostmusic on the platform), can also collect the platform’s core token: $MUSIC. $MUSIC is a utility token, theemission of which is governed by a bonding curve designed to balance supply with the overall token’s
utility and level of demand.
A test version of the Gala Music platform was launched March 28, 2023. The full version, with its token,$MUSIC, was released December, 2023.
During its test phase, Gala Music attracted more than 88 artists, 6.8M streams, 162K account holders,
94K ‘test’ token holders, 13K+ track owners and more than 11K active Gala Music Jukebox NodeOperators (hosts). There are over 25K Gala Music Jukebox Nodes currently in the Gala Music ecosystem.
Gala Music also delivered early versions of its live mobile music companion app, as well as the platform’s‘All Access’ store. The early version of the store saw 1.2K+ items and experiences redeemed, with over a
million of the platform’s test token ‘BEAMS’ being burned in the process.
All of this is part of the broader ecosystem utility centering around the Gala Music Jukebox ecosystem,
the $MUSIC token, and the mechanisms to drive engagement for artists and music fans worldwide.
Whether you are using $MUSIC to get closer to your favorite artists or helping break talent into newheights, your participation in the Gala Music ecosystem can help usher in a new era of growth fordecentralized music.

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1.0. Introduction
There’s more to Music
Gala Music is changing the world. John Lennon said that “Music is everybody's possession. It's only
publishers who think that people own it.” This is why Gala Music exists - to set the music free.
The existing music industry has been built on the backs of musicians for decades. To this day, nothinghas set them free from the industry that - though often well-meaning - locks artists into restrictive
contracts, builds walls between artists and their fans, and stifles the free growth of creative expression inso many ways.
At Gala Music, we strive for a future where artists and their fans are in control.
Music is, and always has been, the heart and soul of the people. Our role, as the builders of the world’s
first decentralized ecosystem platform capable of handling the requirements of all entertainment, is toprovide the opportunity for artists to grow.
The lifeblood of this system is the $MUSIC token. It is a utility token which can be spent in the Gala
Music store, locked towards musicians to help them reach new heights in their careers, used toincentivize ecosystem growth and even to vote on major decisions within the Gala Music ecosystem.
$MUSIC can be spent on concerts, experiences, merchandise, collectibles and music, or used to takeyour favorite artists to the next level in their music making journey.
Everyone - all 8.1 billion people and counting - listen to music and experts believe that the Music NFT
market could grow to $15bn by 2031. This presents a golden opportunity to bring a mainstream audience
into the world of collecting and creating music while supporting artists on their journey.
Join us at Gala Music as we break down the walls holding musicians back to enable seamless connection
and interactivity, empowering artists to become the musicians they have always wanted to be.

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2.0. Audience
MUSIC is for everyone
In exploring the dynamic landscape of the music industry, it's essential to understand the total
addressable market encompassing five key segments: Listeners, Fans, Owners, Hosts, and Artists. Eachgroup plays a pivotal role in the ecosystem, contributing to the industry's vibrancy and economic
potential.

Artists
Gala Music is an artist-first platform, providing each artist with on-chain data around their sales, streams
and ‘All Access’ items and experiences. The release of tracks is the primary revenue stream for an artist
and is supported by residual income from secondary market sales, as well as other platform incentives(gifts, tracks and $MUSIC), which are obtained based on listens, fan and artist engagement.

Listeners
Listeners will find an increasing catalog of artists on the Gala Music platform, with high quality sound anda mobile optimized experience alongside concert and video features.Users can access curated playlists,
new music and exclusive tracks. Unique plays on the platform are tracked so that the most popular songs
can be ranked, and the owners of tracks related to those songs, rewarded.
Gala Music’s mobile app is designed for fans to listen to music on the go, and experience live andauthentic moments with performers, in addition to an optimized experience comparable to most popular
music streaming services. Plays within the app also support the ecosystem through artist and trackowner rewards, and other incentives including gifts, competitions and giveaways within the app.

Fans
Traditionally, the people who buy albums, stream songs or purchase tickets to shows, are largely invisible
to an artist. With Gala Music, emerging talents and established names can see who their top supporters
are, giving them not just a unique insight into their fan base but also a real chance to interact with them.
For a fan, Gala Music provides an opportunity to engage, interact and be recognized by an artist likenever before.
Bringing existing ‘fandoms’ into the ecosystem and incentivizing listening through recognition, also
supports new musicians. For example, fans of one artist can be rewarded by discovering an emerging
talent, with the platform proactively exposing established artists’ fan bases to new tracks and names creating new opportunities for both.

OwnersThose buying music tracks are able to activate their tracks to have them hosted on Gala Music Jukebox
Nodes. Track Owners can then receive $MUSIC based on how well the song is performing. Song
performance is captured by the ‘Popularity Algorithm’ registering the number of listens a song has on the
Gala Music platform.

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HostsKnown as Gala Music Jukebox Operators, those who host music tracks get a share in the daily
distribution of rewards. Jukebox Nodes comprise the Gala Music ecosystem’s Decentralized PhysicalInfrastructure Network (DePIN), rewarding users in $MUSIC for supporting the ecosystem by runningtheir nodes and providing computational power. These nodes host music, which is erasure-encoded andfragmented across multiple storage volumes for efficient distribution. Tokens are generated in responseto verifiable proofs of storage and retrieval.

3.0. $MUSIC
Supply and Schedule
3.1. Token Specification
3.1.1.
Max Supply: 1 billion.
3.1.2.
Token standards: GalaChain token, bridgeable to the Ethereum chain as an ERC20 token.
3.1.3.
Emission type: Dynamic.

3.2. Initial Supply
3.2.1.
In Beta, a test token called “BEAMS” was given out to participants in the platform. BEAMS wereconverted to $MUSIC (at a 1/1 ratio). This conversion resulted in 75 million $MUSIC minted andgranted to ecosystem participants and users.
3.2.2.
75 million $MUSIC tokens were also minted and granted to the ecosystem operator forecosystem partners and platform engagement activities, including development of the platform,
its features and related products. This resulted in an initial supply of 150m $MUSIC minted.

3.3. Supply recipients$MUSIC is distributed across five groups:

Curatorial Entity (Gala Music)
Gala Music receives a portion of the distribution for its role in curating and maintaining the platform in

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these early stages. The ultimate goal is to transition the platform into a fully decentralized ecosystem
and initial preparations are being made in this area.

Hosts
Upon meeting qualification criteria (minimum uptime of 20 hours), Gala Music Jukebox Node Operators
are able to share in the distribution rewards as a reward for providing the computing resources used tohost content on Gala Music.

OwnersAnyone can own music tracks and receive $MUSIC rewards. The more listens a track gets, the larger theshare in the daily distribution that track will receive - incentivizing track owners to promote Gala Musicand their owned tracks.

Artists
As the heart and soul of the Gala Music ecosystem, artists receive both primary sales of their tracks, aswell as a portion of the distribution based on their track's popularity as determined by the popularity
algorithm.

Advocates
Listeners who actively promote the platform, engage in a number of promotional activities and actively
bring in new listeners also receive distribution of $MUSIC, based on the efficacy of their promotional
activities. This portion of the distribution is governed by the list of Ecosystem Supporting Activities in
Section 4.7.

This upcoming section delves into more technical aspects. Understanding these finer
details is key to fully appreciating the intricacies and potential of Web3 technologies
and their impact on digital interactions.
3.4. Supply & Schedule
Instead of a premint of the total supply, $MUSIC tokens will be emitted daily via an algorithm that takes
into account user engagement, node operation and positive network activity.
The daily maximum limit of $MUSIC tokens that can be distributed is approximately 0.05% of theremaining tokens needed to reach the softcap—the target maximum total supply.
Our algorithm evaluates platform activity to determine how many tokens are distributed each day, up to
this daily maximum. The daily maximum emission rate signifies an exceptionally high level of platformdemand and engagement, making it unlikely to be reached on most days. The minimum amount of$MUSIC tokens that can be distributed in a day is 20% of the daily maximum emission rate, ensuringconsistent incentives for user participation. In short, the Daily Max Emission can be represented like this:Ecosystem Blueprint v3.0

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𝐷𝑎𝑖𝑙𝑦 𝑀𝑎𝑥 𝐸𝑚𝑖𝑠𝑠𝑖𝑜𝑛 = (𝑆𝑜𝑓𝑡𝑐𝑎𝑝 − 𝑇𝑜𝑡𝑎𝑙 𝑆𝑢𝑝𝑝𝑙𝑦)×0. 0005
3.4.1.
The $MUSIC token will adhere to a dynamic supply schedule governed by a mathematical formula akin toa bonding curve. This formula relies on ecosystem activity parameters as an input; it has been designed
to ensure that the supply of $MUSIC scales with platform growth and positive network activity. Thisapproach will mitigate issues of oversupply and undersupply that can be found in fixed supply schedules.
Specifically, the ecosystem parameter aligns to the level of overall Ecosystem Supporting Activities
listed in Section 4.2,4 including creation (minting) of new music on track purchases, sharing of music,
network growth and more.
3.4.2.
The bonding curve calculates the amount of daily $MUSIC allowance created as a result of Ecosystem
Supporting Activities, based on the average of the previous 7 days of activity.
3.4.3.
$MUSIC is burned via token utilities (listed in Section 10) through activities such as Artist Boosts andpurchases made via the All Access store. When this type of activity increases, the $MUSIC allowance
derived from the ecosystem activity is increased. This ensures the ecosystem's sustainable operation

3.5. Distribution Types
At the Token Generation Event (TGE), 150 million tokens were allocated to the existing ecosystem
participants. After the TGE, $MUSIC tokens are minted and distributed to the active participants on adaily basis. The distribution follows the fixed ratio as described in the table below. The amount of daily
distribution is regulated by the bonding curve and the distribution mechanism outlined above.

3.6. GAS Token and L1 Chain
GalaChain, as Gala Music's L1 blockchain, leverages the power of $GALA as its designated gas fee token
for seamless bridging in and out of the platform. This approach ensures efficient operations. GalaChainenhances the ecosystem without diminishing the value and purpose of the $MUSIC token.

3.7. Key Features of GalaChain●●●●

Near-real time settlement with low gas fees and sub-second latency
Semi-permissioned L1 (GalaChain) to allow for tailoring and improved security
Easy channel management - contracts and tokens are created using TypeScript
Efficient blocks without the need for a high carbon footprint

3.8. $MUSIC Audit
Certik has provided the audit of ERC-20 compliance for $MUSIC. They verified properties of the public
interface of the token contract that implement the ERC20 interface, including:●●

Functions ‘transfer’ and ‘transferFrom’ that are widely used for token transfers,
Functions ‘approve’ and ‘allowance’ that enable the owner of an account to delegate a certain
subset of tokens to another account (i.e. to grant an allowance), and;

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●

The functions ‘balanceOf’ and ‘totalSupply’, which are verified to correctly reflect the internal
state of the contract.

4.0. Ecosystem
Reward Allocations and Pools
The daily token mint will be distributed to ecosystem participants who contribute positively to theproject and platform, incentivizing their beneficial actions.

4.1.1. Music Platform Allocation (50%)
50% of the daily mint is allocated to operational needs. Curating Entity (Gala Music) has the flexibility to
distribute these tokens as required to support ongoing operations. Common categories that will befunded from this allocation will include:●●●●

Development Costs
MarketingPhysical Events
Partnerships and Licensing

4.2.2. Gala Music Jukebox Node Operators (17.5%)
The ecosystem relies on Gala Music Jukebox Node operators to provide its music streaming service
infrastructure so that fans can discover, stream, support and interact with artists. The operators of Gala
Music’s Decentralized Physical Infrastructure (DePIN) receive 17.5% of the daily distribution for operating
their nodes and contributing their computing resources to the ecosystem.

4.2.3. Track Owners (15%)
Token allocation for a track is calculated using Gala Music’s proprietary Popularity Algorithm, with thedaily $MUSIC issuance amount being derived from the $MUSIC allowance pool. 15% of the distribution is
distributed to track owners whose tracks are activated with Gala Music Jukebox Nodes.

4.2.2. Founder’s Nodes (2.5%)
Founders Nodes are the backbone of the entire Gala Ecosystem, integral to the functioning of GalaChainand contributing to various essential tasks such as securing the network and storing data. 2.5% of thedaily distribution is distributed to operators of the Founder’s Nodes for their support of the ecosystem as
a whole.

4.2.3. Artists (5%)
5% of the daily is allocated to artists based on the popularity of their tracks, as determined by the
Popularity Algorithm.
Alongside the $MUSIC distribution reward an artist can receive , they also benefit from:

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●
●
●
●
●

Sales of their music via tracks
Experience and merchandise related revenues from the All Access store
Gifting through 'live party' music streams/performances on mobile app by viewers and fans
Actions and hosting of their own content
Referring users to the Gala Music platform

4.2.4. Supportive Ecosystem Actors (10%, Keystone)
In addition to the previously named ecosystem participants, there is a segment of the daily distribution
specifically focused on growing the ecosystem. This is similar to the early Founder’s Node referral reward
model but instead of focusing only on sales/node operation, it also allocates rewards based on actual
involvement with the ecosystem, rather than just referred sales.
To encourage the spread of content and attract new users, Gala Music will distribute tokens based onwhat we deem to be positive ecosystem supporting actions.
There are many actions which could potentially qualify as ecosystem supporting behaviors. The list ofthese actions will eventually be published and users will be able to see which actions result in thegreatest reward within any given distribution cycle.
Examples of these actions may include but are not limited to:
●
●
●
●
●
●
●

Listening to Music
Initializing a Jukebox Node for the first time
Assembling a Collection (Mixtapes)
Activating a reward enabled track
Gifting $MUSIC to an artist
Opening a Mystery Box
Referring a friend (who completes certain actions such as initializing nodes, operating nodes,
and actives a track)

The key to this distribution is that all actions which qualify as “Ecosystem Supporting Actions” must be
publicly visible and verifiable. This means that they either need to be written to chain or available inpublic in a way that the data surrounding them can be pulled via API and integrated into a distribution
formula that is independently verifiable and transparent.

5.0. Popularity Algorithm
Rewarding Success
Every day, $MUSIC is distributed to qualifying track owners based on the related song’s popularity. Fansare also incentivized to support artists' tracks - those making referrals are able to collect bonuses andthose actively promoting songs can also qualify for rewards. While the details of the popularity
calculation will remain confidential to ensure fairness - the following factors are considered in thecalculation:

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●
●
●
●

On-platform stream countNumber of unique listeners
Exclusivity status on the Gala Music platform
Track Virality on Social Platforms relating to Gala Music

6.0. Reward Eligibility
Ecosystem Participation
In order to be eligible for daily $MUSIC distribution rewards, ecosystem participants will need to meetthe following criteria:
Gala Music Jukebox Node Operators:● 20 Hours (daily) uptime
Track Owners:● A valid track activation to an online Jukebox Node● Top 80% of listens based on song popularity● At least 30 monthly ‘listens’ (logged in state)
Artists:● A qualifying track hosted in the ecosystem. This is a track that has been submitted via the artist
portal and minted on the platform.

7.0. Ecosystem Boosts
In keeping the promises made to the community and the ecosystem, if a user's wallet contains a BT Orb(Limited Edition), their daily distribution will receive a .0125% bonus. This bonus stacks and is cumulativefor each BT Orb (Limited Edition) and is unlimited. The Open Edition of BT Orbs also receives a bonus,
but one which is 10% of the Limited Edition BT Orbs.

8.0. Token Utilities
8.1. All Access
All Access is the exclusive experience and merchandise marketplace of the ecosystem, where $MUSIC is
the exclusive currency. Launched as a store during Gala Music’s test phase, All Access is a key basis for
the $MUSIC token, with the utility of $MUSIC scaling with the increasing size of the platform’s artist
portfolio, as well as the independent scale of the All Access store, which is designed as a self-serve fanstore for artists.

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8.2. Exclusive Access
Artists can grant exclusive access to their All Access products to fans based on the size and duration of
the amount of $MUSIC held in support of them.

8.3. Non-Exclusivity
It is planned that the All Access store will be a home for all artists, even those not releasing tracks on
Gala Music. It will also be opened up as a marketplace for wider brand partnerships and entertainment
related content. During the platform test phase, Gala Music began to build out the supplier base andoperational model for All Access, so that in the future those wishing to feature and sell items in store cando so through self-service, with complete visibility and more creative control.

9.0. Decentralization
Artist and Host Control
As mentioned there will be self-service capabilities for content creators and partners on the All Accessstore. There will also be open onboarding to all artists through the ‘Entry’ tier - which is governed solely
by audience/fan engagement and tracked via the Popularity Algorithm.
Alongside these features, Gala Music will also share control and influence with those hosting the
network (Gala Music Jukebox Node operators) and with those providing content for the network to host(owners and artists).

Curation
Gala Music Jukebox Node Operators will be able to create and then vote on monthly playlists which willfeature on the Gala Music platform

EventsGala Music Jukebox Node Operators will be able to vote on some physical activations. This might takethe form of the activation itself (with them selecting their preference), or be in reference to its execution(i.e. the location, date and/or line-up of the activation).

Moderation
Gala Music Jukebox Node Operators can vote to have content (and/or artists) deemed inappropriate andremoved from the Gala Music platform.

VotingMajor platform changes, such as artist and track curation will sometimes be put to a Gala Music Jukebox
Node vote

Promotion
Artists who participate live on mobile app will be able to curate their own set of tracks. These will befeatured on the platform - the set must contain a minimum number of 6 artists

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Conclusion
In conclusion, Gala Music represents a bold and transformative vision for the future of the musicindustry. We've journeyed from recognizing the constraints faced by artists in the traditional musicindustry to forging a new path with the $MUSIC token - a tool that empowers artists and fans alike. Our
mission goes beyond merely reshaping how music is distributed and experienced; it's about
revolutionizing the very essence of the music industry. With a focus on community, creativity,
connectivity and artist growth, Gala Music is not just a platform but a revolution, inviting everyone toparticipate in a more equitable, dynamic and vibrant musical world.
As we move forward, our commitment remains steadfast: To break down barriers, foster direct artist-fan
interactions and ensure artists have the freedom and support they need to thrive. By joining Gala Music,
you're not just witnessing a revolution; you're becoming an integral part of it. Let's continue this journey,setting music free and celebrating its true spirit, one note, one artist, and one fan at a time.

Ecosystem Blueprint v3.0

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December 18th, 2023
Version 2.7● Added the Change Log feature to track ongoing changes● Changing track pricing to reflect the self-service model to allow artists to set their own prices● Expanded the Artist Daily segment to 10% of the non-curatorial entity distribution and removed
the 5% monthly pool
February 27nd, 2024
Version 2.8● Updated Gala Music Whitepaper designOct 1st, 2024
Version 3.0● Removal of Track Rarities/Track Upgradability● Adjustment to Distribution Allocation, increasing Track Owners share by 2.5% from Ecosystem
Actions● Adjustment to emissions formula and supply schedule, making distribution based on overall
Ecosystem Supporting Activity● Removal of section “Mint Allowance Pool”● Standardized Jukebox Node Rewards based on computing resources provided and uptime● Introduction of $MUSIC Governance

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