Business Model

12.1 Revenue Streams

Primary Revenue (85% of total):

•DMA Transaction Fees: 15% of every DMA purchase

•Trading Fees: 2.5% fee on secondary market transactions

•Vault Management: Fees from vault reserve management and yield generation

Secondary Revenue (15% of total):

•Premium Subscriptions: Enhanced features and analytics for $9.99/month

•Artist Tools: Advanced analytics and promotion tools for artists

•Partnership Revenue: Revenue sharing with music labels and distributors

12.2 Unit Economics

Customer Acquisition Cost (CAC): $4.20

•$2.50 paid marketing (social media, influencer partnerships)

•$1.20 organic acquisition (referrals, word-of-mouth)

•$0.50 retention and engagement costs

Lifetime Value (LTV): $56.20

•Average user purchases 3.2 DMAs over 18-month period

•Average DMA price of $12.50 (including bonding curve appreciation)

•Platform earns 15% transaction fee per purchase

•Additional revenue from trading fees and subscriptions

LTV/CAC Ratio: 13.4x (excellent for marketplace businesses) Payback Period: 4.2 months Gross Margin: 68.6%

12.3 Financial Projections

Metric	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	$1.5M	$6.5M	$22M	$48M	$78M
Gross Profit	$1.0M	$4.5M	$15.1M	$32.9M	$53.5M
Operating Expenses	$5.5M	$7.3M	$13.0M	$20.1M	$28.4M
Net Income	-$4.5M	-$2.8M	$2.1M	$12.8M	$25.1M
Active Users	10K	50K	200K	400K	600K
DMAs Created	500	2,500	10K	20K	30K
Artists	50	250	1K	2K	3K

Key Assumptions:

•Average user purchases 3.2 DMAs over lifetime

•Average DMA price of $12.50 (including bonding curve)

•15% platform transaction fee

•Conservative user growth based on comparable platforms