LABEL
Learn the world-class music classes
White paper v 1.0 Last updated June 2021 01
1. Preface 2 2. Introdution 6
2.1. EduTech Market 6 2.2. Issues in the Market 9 A. High Entry Barriers to the Content Production 9 B. Complex and Unfair Profit Structure 10 2.3. Why Blockchain? 11 A. Enhanced Access to the Investment Funding 11 B. Transparent Profit Allocation 12 3. Platform 13
3.1. Team Mission 13 3.2. Key feature 15 A. Incubating 15 B. Smart Contract settlement system 17 C. NFT Market 18 4. Token Economy 19
4.1. LABEL Token 19 4.2. Token Economy 20 4.3 User scenario 22 5. Business 24 5.1 OPENTRACK 24 5.2 Business Plan 26 5.3 Marketing Plan 29 6. Partners 32
7. Token Distribution 33
8. Team & Advisor 34 8.1 Team 34 8.2 Advisor 36 9. Roadmap 37
10. Disclaimer 39 02
Preface01
The major companies, such as Google, Apple, Netflix, Spotify are leading the fourth industrial revolution, reforming the Global IT sphere, establishing a pervasive digital culture with their innovative technologies and creative pieces of advanced content, which is de facto having its own influence on our daily lives. The compa- nies that are operating in these fields recognize the need to adapt quickly to the changes in order to perform properly in a global competitive environment. Therefore, they are seeking and cultivating employees who have capabilities to accept innovative technologies with flexibility and practicality. Provided the fact that constant acquisition of new skills and pieces of knowledge is a requirement of our times, both recent graduates and specialists with work experience are utilizing the Massive Open Online Course (MOOC) platforms in order to foster and cultivate new or existing skills and capabilities in practice. Most of the consumers opt for MOOC platforms due to the fact that they provide educational courses adaptable to rapid changes with low entry barriers and affordable prices. Thus, MOOC is recognized to be an efficient education service that allows students to take courses which suit their academic and professional objectives, fully online without a quota limit on the lectures, that are provided by the experts from different fields of the most prestigious universities, institutions and even companies. On top of that, the demand and the necessity of the MOOC platforms is increasing dramatically in the career education domain all over the world in the aftermath of COVID-19 pandemic that has put a long halt on face-to-face classes.
The Global Edutech market has reached 86 trillion KRW valuation by 2019, and according to market research, it is going to exhibit a steady growth with a CAGR 18.1% from 2020 to 2027, and therefore the market size will reach the estimated worth of 322 trillion KRW by 2027. The industry is growing rapidly and consistently along with the expansion of IT infrastructures in the developing countries and emerging economies, and along with the increased use of wireless internet due to the development and spread of smartphones and tablets, and certainly due to the revitalization of AR/VR markets. In the aftermath of COVID-19, which has made the MOOC industry as trendy and actual as possible, several pioneers of the sphere have seen a very positive growth trend and even more tremendous future outlook in the platforms. For instance, Coursera, which happens to be one of the first-movers of the Edutech industry among the MOOC service companies, has witnessed a substantial growth in the number of subscribers in the platform, which has increased sevenfold compared to last year, and have reached over 10 million subscribers in total. As a matter of fact, the concept of winner-takes-all hasn’t been applied in this case, as the closest competitors of the Coursera, Udemy, Udacity, Khan Academy and other platforms also have exhibited the same level of growth. In the aftermath, currently major 5 MOOC companies' value exceeds 10 trillion KRW, which is expected to grow further, since the digitalization is here with us to stay, even if the COVID-19 ceases to exist. 03
MOOC services are being concentrated on the IT, career/job training in business context spheres, due to the fact that there is a sufficient amount of demand coming from the customers who have a high purchasing power. In this environment, the demand for MOOC services reached outstanding increase, leading the growth trend in the Edutech market. Due to the COVID-19, over 1.57 billion students across the globe experienced online education, as their classes were fully turned into non-face-to-face style. Although the vaccine has been produced and the end of COVID-19 is near, the demand for non-face-to-face education based on digital technology will keep on growing rapidly not only in the existing IT and business fields, but also in the spheres such as entertainment, media and medicine, as well as affecting other crucial industries.
Anyone who рossesses an expertise in a certain industry or subject is allowed to submit their study plans and teach without limitations, sharing their work experience in their digital education courses. Also this industry has enabled the potential of the global ripple effect, which can contribute high economic value to the emerging economies. As a matter of fact, In 2019 solely, one of major Edutech companies - Udemy reported a profit of 5million USD, that were earned cumulatively by top 15 teachers, which brought around 650 thousand subscrib- ers to the platform, with the most famous courses being purchased by 100~300 thousand students.
In fact, it is difficult for individual instructors to make products and distribute the content on their own, due to the fact that the content creation process requires monetary materials and equipment for planning, investment, production, translation, playing and for other inputs. In addition, it is still not easy for those original content creators, who are not affiliated with large entertainment agencies, to become equal participants in distribution channels and receive their legitimate profit slices in the value chain. This is happening mainly due to the centralization of the Value Chain on the investment and production companies, which are acting as middlemen, forming an unfair profit distribution environment. As a result, a lot of knowledge-sharing content which include global expertise can’t be digitalized due to the poor and unfair environment for providing high quality and diverse education content to customers.
In order to activate the developing high quality and diverse courses in response to the increasing demand for MOOC services, the LABEL team will build up an ecosystem that will establish an incubating system, that will purport to provide an easier access to investment/promotion/distribution and improve an unfair profit structure that exists in the sphere, striving to prevent copyright infringement cases across the industry. The pillars that will be developed inside of the LABEL Value Chain ecosystem are as following: 04
01 Incubating The core idea behind the “Incubating System” is that anyone can register their digital course related to the career or job training and education inside of the LABEL. However, in order for the course to be eligible for the listing on the platform, it has to go through the voting system, where the votes are governed by the users and the selection process is carried out according to their votes. Once the selection process is over, the selected course will be provided with the investments in LBL tokens, that are contributed by either partner sales platforms, consumers or individual investors. Afterwards, compensation will be made to contributors who participated in marketing through promotional functions.
02 Settlement System through the usage of NFT and Smart Contracts The courses, that have successfully received investments, will be registered as an NFT standard, which will clearly illustrate the share ratio of the ownership according to the contributions of instructors, voters and investors. The information on sales revenue from partner platforms will be released on the NFT Page, and the revenue generated by the course will be accurately distributed based on the NFT Equity Ratio that is registered in the Smart Contract.
03 NFT Market The Course Creator, as well as the voters and inventors that have participated in the incubating process, including the selling platform itself and publicist can sell or trade their NFT share ratio in the NFT Market. The presence of the NFT Market enables the NFT owners to quickly liquidate their position and recover some of their expected future profit, whereas buyers can keep getting their stable profit slices continuously. NFT Market contributes to revitalization of the virtuous cycle of the Label’s ecosystem with the presence of convenient transactions of Intellectual Property and Owned Copyrights based on transparent and efficient contribution assessment and calculation systems. 05
Strategic Partners LABEL is collaborating with the companies from the E&M(Entertainment & media) to concentrate on the cultivation of its native incubating system. In fact, the companies from E&M fields are good at adopting new technologies and trends, especially the IT devices. From the E&M field, the Clesson Co., Ltd. happens to be the major partner of LABEL. Clesson Co., Ltd. is the South Korean leading music education company, which possesses over 200 music lesson experts registered in their platform. On top of that, Clesson Co., Ltd. operates OPENTRACK, which is sort of the MOOC service in the E&M field. In the OPENTRACK, there are many global artists & producers, coming from different backgrounds and countries ranging from the U.S to Australia, and all these people are registered as platform partners in the OPENTRACK. Moreover, the LABEL is going to partner with the entities that happen to be copyright management experts that have previously worked in the distin- guished distribution and entertainment production companies. In overall, LABEL will carry out an innovative MOOC Value Chain business that is based on blockchain technology and will keep on establishing both domestic and global partnerships in various fields in order to strengthen its ecosystem by leveraging the utmost experi- ences of its strategic partners.
Future Outlook In the nutshell, LABEL is aspiring to provide an unparalleled sales infrastructure based on blockchain technology through its incubating system, where the experts can be discovered and invested into and through its system integration, where it will provide a fair profit sharing ecosystem for intellectual property rights. Last but not least, LABEL is going to initiate a virtuous circle that will activate Global Value Chain with the provision of its NFT Market, where the IP rights enchanted in the NFT will easily be transactable.
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02Introduction
2.1. EduTech Market
According to the research conducted by the Holon IQ (2020), the Global Education market was estimated to be worth 2.8 trillion USD in early 2000, which has almost tripled in its value, increasing to 6.5 trillion USD in 2020. The experts’ recent forecast of the Global Education market indicated that it is going to reach a valuation of 10 trillion USD by 2030, whereas the Global EduTech market is expected to increase to 3,420 billion USD by 2025 which is the twofold increase over 7 years span.
(Unit: Trillion USD) (Unit: Billion USD)
10.1
8.1 342 6.5 5.2 4.2 3.5 2.8 153
2000 2005 2010 2015 2020 2025 2030 2018년 2025년 출처 : Holon IQ(2020)
[ Global Education Market Size ] [ EduTech Market Size ]
In the first half of 2020, The Global EduTech companies received a total amount of investments composing somewhere around 13 trillion KRW (12 billion USD) due to the fact that it became an attractive investment industry in the COVID-19 era. Although, the EduTech and Non-Face-To-Face education tools and devices became a panacea during the pandemic period, they are not considered to be a short-term alternative solution, as it is expected, that the digital education is here with us to stay, with the solid contemplations that it is the viable future of the global education system. In the same strain, the investment and ticket sizes that were raised by the EduTech companies were gigantic and the investors still keep pouring their money into the digital unicorn companies. As a matter of fact, Yuanfidao and Zuoyebang - China-based EduTech companies that provide online classes with unique assignment systems, attracted 1 trillion KRW (900 million USD) and 850 billion KRW (780 million USD) in private offerings, respectively. Apart from that, an Indian EduTech company BYJU has also managed to raise 700 billion KRW (640 million USD) from the global investment firm BOND. 07
In fact, the trending investment keywords in the EduTech sphere in 2020 are known as “MOOC” and ‘Higher Education”. Although, the Higher Education has captured the 68% of the total amount of investments, the primary E-Learning domain, which is represented by MOOC, ranked first in both number of investment cases and the amount of investments raised in the EduTech sphere, which is the direct implication, that the MOOC is the most trendy and actual investment area, which is going to further drive the growth of the EduTech industry.
This trend has been initiated, by the chain of events and people, that have experienced a Non-Face-To-Face education style in the aftermath of the COVID-19, and they have recognized and acknowledged its efficiency. As a result, a Non-Face-To-Face education system has eventually been recognized as a non-temporary instrument, and on the contrary, this system has been regarded as capable of replacing the traditional education system permanently and capable of supplementing various levels of education with a wide range of subjects, which is beyond the capacity of the traditional education. Thus, this change is inevitable, yet it is a positive change that will enhance the growth of potential and market size of the EduTech and Non-Face-to-Face markets.
Udemy reported a net profit of 5 million USD, that was earned cumulatively by top 15 teachers, which brought around 650 thousand subscribers to the platform, with the most famous courses being purchased by 100~300 thousand students. This case serves as a direct proof of the rapid growth of the MOOC services and its market size.
Apart from that, major MOOC companies received massive investments. For example, Coursera secured 130 million USD, Udemy got 50 million USD, Udacity got 150 million USD and the list goes on and on. It is the ultimate signal of a full-fledged growth and expansion of the MOOC market. Also, companies are expected to continuously and rapidly grow due to the expansion of IT infrastructures in developing countries, and along with the increased use of wireless internet due to the development of smartphones and tablets, the activation of AR/VR markets.
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# of Partnering Classification Country (Mostly Used) # of Subscribers # of Classes Institutions
Coursera USA 150 37 million 2,700
edX USA 118 18 million 2,778
Udacity USA 17 10 million 229
FutureLearn UK 171 8.7 million 297
FUN France 135 More than a million 544
iversity Germany - - 74
miriadax Hispanic 105 About 4.07 million 690
OpenUpdEd EU 15 countries - 404
Netease Open Courses China 29 - 11,406
XuetangX China 600 24 million 2,300
JMODC Japan 82 half a million 307
Malaysia MOCs Malaysia 20t about 290,000 408
Source: Gyeonggi Research Institute (2019), Edited Version.
[ Global MOOC Current Status ] 09
2.2. Issues in the Market
Anyone who рossesses an expertise in a certain industry or subject is allowed to submit their study plans and teach without limitations, sharing their work experience in their digital education courses. Also this industry has enabled the potential of the global ripple effect, which can contribute high economic value to the emerging economies. In fact, it is difficult for individual instructors to make products and distribute the content on their own, due to the fact that the content creation process requires monetary materials and equipment for planning, investment, production, translation, playing and for other inputs. On top of that, digital pieces of content require complicated processes like transmission, distribution, marketing for sales promotion.
In addition, it is still not easy for those original content creators, who are not affiliated with large entertainment agencies, to become equal participants in distribution channels and receive their legitimate profit slices in the chain. As a result, a lot of knowledge-sharing content which include global expertise can’t be digitalized due to the poor and unfair environment for providing high quality and diverse education content to customers. In order to activate the developing high quality and diverse courses in response to the increasing demand for MOOC services, the LABEL team will build up a Value Chain that will purport to improve an unfair profit structure that exists in the sphere and will strive to prevent copyright infringement cases across the industry.
A. High Entry Barriers to the Content Production Even for the most experienced instructors, who possess a sufficient amount of knowledge and skills to initiate their own demanded digital course, it is not easy to distribute and commercialize their digital products, as they will always need an extra set of experts for filming, editing, designing and marketing purposes in order to deliver their course on the targeted platform and reach the audience.
The online career/job training courses can be produced with relatively small monetary and human capital compared to movies, music, and dramas. However, it is still difficult for the instructors to obtain the capital investments and other support necessary for production, except when the instructors are produced by a large educational content company. On top of that, it is a complicated venture to hire separate experts to carry out efficient promotional activities before the sales revenue occurs in the early stages, and there is a high opportu- nity cost for instructors to carry out the PR activities on their own. Provided these factors, the reality inevitably leads to the repeated course of actions and the phenomenon, where the complexity for instructors to partici- pate in the process of production of the online courses will keep occurring constantly, even if they have sufficient potential and the economic value of their expertise. 10
B. Complex and Unfair Monetization Structure Stakeholders who have contributed to content production and investment should have reasonable revenue distribution depending on their contribution. However, various stakeholders, including planning/invest- ment/production/translation/transmission/distribution/marketing participating in content production, cause complex revenue distribution structures from production to distribution.
If the value chain which is made by investment and production companies and middle distribution companies is formed, it is unfair because the contribution to the dominance of capital investment and distribution platforms is complex. In addition, complex distribution processes, such as fees for distributors linking creators and distribution platforms and management fees for copyrights, further deteriorate the profitability of creators.
Founder Instructor
Investor Learner Agent Distributor Contents
Structure with multiple creators and other stakeholders (album records, movies, dramas, musicals and other performances)
1 11
2.3. Why Blockchain?
A. Enhanced Access to the Investment Funding If you are not associated with the large production companies or professional and top industry players, it will not be easy to attract investment opportunities to your project, no matter how potentially profitable your project is going to be. LABEL provides a system that allows users to purchase and sell content by tokenizing (NFT) the share of content without the help of a middlemen agency, such as a copyright association, making it easy for anyone, even if they are supported by institutional investors, to own a stake in their own content. Individuals can either tokenize their stakes in content that is currently circulating in the market or invest in content that is newly produced by LABEL.
LABEL supports a blockchain-based incubation system that is going to revolutionize the existing business structure centered on content production companies and distribution platforms. It improves investment accessibility by eliminating unnecessary intermediation steps. Also, instructors can distribute their created course contents and receive profits by choosing from among distribution platforms directly affiliated without the help of intermediaries. And they can also receive marketing support from course content learners and investors and also distribution platforms. Thus, we are positive, that blockchain technology is the most effective way to solve high entry barriers for content production.
NFT ERC-20 Smart Contract (Non-Fungible Token) 12
B. Transparent Profit Allocation Non-Fungible Token (NFT) on the Ethereum network is a digital asset that cannot be replaced by another token. In addition to the NFT's ability to guarantee ownership with digital assets, NFT can also divide owner- ship of tokens into equity interests. People can accept ownership of parts and purchase tokens in the same form as 1/n.
LABEL utilizes blockchain-based smart contracts to distribute profits transparently and accurately. LABEL distributes NFT shares of course contents produced through the establishment of an incubation system to stakeholders according to their contribution. Staking structures will be recorded on the NFT and will transpar- ently be managed. When the content of the course is uploaded, the settlement system will collect the data that has been sold on the integrated distribution platforms. And then, It will settle profits transparently through the Smart Contract.
Authorization-related transactions and crowdfunding of all creations are transparently provided within smart contracts. Also ecosystem participants are guaranteed transparency so that no one can falsify and tamper with token movements paid through activities. These improvements will increase the participation rate of maintain- ing the ecosystem, creating a virtuous cycle structure and providing a mature educational Value Chain ecosys- tem. 13
03Platform
3.1. Team Mission
The LABEL team will devise a blockchain-based incubating platform that will address and strive to solve the problems associated with the Value Chain in the global educational content market. LABEL's NFT technology will also grant the ownership to the creators over their courses, thereby maintaining various blockchain functions, including copyright protection, transparency provision, and elimination of the unnecessary intermedi- ation aspects. LABEL aims to facilitate communication between creators and consumers of different kinds of digital pieces of content around the world, providing the utmost and advanced blockchain-based Value Chain.
Low Intermediation Ownership Security and Trading Reward System Cost Business Efficiency Confirmability Reliability Transparency
[ LABEL’s Core values ]
01 Incubating In the LABEL Platform, anyone can register their course related to career education or job training. However, in order for the course to be eligible for the listing on the platform, it has to go through the voting system, where the votes are governed by the users and the selection process is carried out according to their votes. Once the selection process is over, the selected course will be provided with investments in LBL tokens, that are contributed by either partner sales platforms, consumers or individual investors. Afterwards, compensation will be made to contributors who participated in marketing through promotional functions.
02 Settlement System through the usage of NFT and Smart Contracts The courses, that have successfully received investments, will be registered as an NFT standard, which will clearly illustrate the share ratio of the ownership according to the contributions of instructors, voters and investors. The information on sales revenue from partner platforms will be released on the NFT Page, and the profit generated by the course will be accurately distributed based on the NFT Equity Ratio that is registered in the Smart Contract.
03 NFT Market Both course creators and participants, who contributed during the incubation process (voters, inves- tors, sales platforms, and promoters) can sell their shares of the owned NFT through the NFT Market. This in turn allows NFT owners to quickly recover some of their expected future profits and liquidate their positions, and also allows buyers to continue earning stable returns. It contributes to ecosystem activation by providing convenient transactions for IP rights based on transparent and efficient contribution assessment and settlement systems. 14
Smart Contract Incubating NFT MARKET Settlement System The site that promotes and attracts Profit allocation according to Selling NFT shares of education investment in new career/job the NFT Equity content -related education projects Provision of NFT Equity Ratio Automatic Profit Allocation Voting system on the courses Profit Information By NFT Equity Ratio to be registered Partner Platform Profit API Convenient Trading of IP Education project copyright Connection Property Rights protection through the usage Partner Platform Profit Transparent and Stable of NFT standards Information Provision Content Trading System Profit allocation according to the NFT Equity Ratio
[ LABEL Value Proposition ]
The LABEL aims to return the true value back to the creators of digital education content, and creates a space for creators, inventors, consumers and distribution platforms to gather and coexist within the single ecosystem. LABEL is based on blockchain technology, therefore it proposes a platform in a joint investment format, where anyone with global intellectual property can initiate a new training course, thereby monetizing its true value. Through this practice, LABEL implements a true meaning of the Value Chain that can produce global education course content and provide a truly transparent share-based monetization structure, addressing and solving the problems of the entrenched education content market.
Copyright Protection Learner Instructor
Content Blockchain Sale
Incubating Smart Contract NFT Market
NFT Crowd- Equity Investor funding Creator Structure
[ LABEL Ecosystem Configuration ] 15
3.2. Key feature
A. Incubating Incubating function opens up a possibility for the creator to cultivate a new piece of an educational course. It is an online site that conducts the due diligence on the reception of the investments needed for incubation, and it is a page that introduces how and when the investment is made in the project. This function provides the features, such as verification, investment matching, and distribution platform interlocking functions through the voting system on the new course prepared by the number of creators. It also supports blockchain-based incubating for a series of processes in which the course is produced, distributed, and generates a profit, such as the reward function for promotion of the released courses and the ability to allow IP utilization for secondary creations.
Incubating Process
The verification is carried out by the voting system, when a new project is launched by the creator. The voters can be not only general users but also affiliated distribution platforms and individual investors are allowed to participate to the full extent. LABEL users will be using LBL tokens in order to participate in the voting process. Once the target number of votes is achieved, the project will be eligible to receive the crowdfunding. Upon successful funding, unique NFTs will be generated and will automatically be allocated to fundraising participants and other shareholders according to their contribution amount (equity-based scheme) On top of that, voting participants can receive discounts when purchasing the content of the project and receive equity shares based on their contribution to NFT generation.
Voting Incubating
NFT
Funding
[ Incubating ] 16
Voting The investors due to the decentralized crowdfunding scheme, during the voting process will be provided with smart contracts, so that they will be able to get back their deposit if the course fails to raise funds according to the progress of the project or they will be eligible to receive rewards without errors if the course succeeds to list on the platform. The disclosed distributed ledger preemptively blocks unreasonable behavior to encourage the favorable one for successful funding, beyond the minimum needed amount.
Distribution Support Courses manufactured after crowdfunding are registered on the Incubating Page. The Course Creator enters into a distribution contract agreement, if he/she chooses one among the affiliated distribution platforms that previously participated in the voting or funding process.
Community Promotion Support Several promotional functions that are expanded to various SNS platforms are provided. LABEL tokens will be paid as compensation means in the process of promoting to the external world.
Secondary Creation IP Permission In the LABEL, Intellectual Property can be shared for new secondary creations. In contrast, Incubating allows sponsors and producers to propose new projects that incorporate a variety of IPs. Producers are rewarded with tokens as additional profit added to their copyright profit slice. In addition, content consumers can participate in the ecosystem as producers of secondary educational content as well as they can participate as buyers. The transparent approval/investment is made through smart contracts. Sponsors and producers receive profits from new re-created projects, and producers receive transparent compensation for their copyright holdings. 17
B. Smart Contract settlement system
LABEL Platform provides an accurate and transparent profit allocation system with the help of the Smart Contract. The courses that successfully receive an investment are further generated as NFTs, that reflects and records the equity share of the NFT based on the contributions of instructors, voters, and investors. The profit information generated through the sale in partner platforms is released on the NFT Page, and the profit from courses are distributed by Smart Contract according to the NFT Equity Ratio.
Partner Platform Profit API Connection LABEL Platform provides API linkages to affiliated platforms for distribution of education course contents in order to connect the course and profit information. Course content that has successfully attracted investment will be distributed by providing course information to various partner platforms, with the sales being registered, and later compensation to contributors who participated in content marketing through promotional functions will be provided. The profit information based on sales and compensation can be obtained directly from the LABEL Platform. Profit information will depend on contribution and NFT equity ratio and will be settled by Smart Contract in accordance with the following formula:
PAall : Total Profit Generated by course content A ANall: Total number of NFTs matching to course content A Na : Number of NFTs owned by ecosystem participant A Pa : Profit to be paid to A
Pa = (PAall * Na) / ANall
Marketing Contribution NFT Shareholding Reward Profit Allocation
[ Smart Contract Settlement System ] 18
C. NFT Market
The NFT Market is the space for trading NFTs created inside of the Incubating System. NFTs generated in the incubating are kept in private wallets, and NFT owners can trade NFTs for their shares in the NFT Market. Through the NFT transactions, investors who do not participate in the incubating can also own shares in the content and receive profit distribution corresponding to the share holdings. By utilizing smart contracts, NFTs can be transmitted and easily traded without separate contracts.
NFT NFT Sale Purchase
[ NFT Market ] 19
04Token Economy
4.1. LABEL Token
ERC 20 Content Copyright Profit Allocation Incubating Crowdfunding Payment for Course Content Transactions in NFT Market Ecosystem Participation Reward
The LABEL is an Ethereum-based utility token used on the LABEL platform. LABEL tokens can be obtained as rewards through the LABEL ecosystem activities or can be purchased on the digital asset exchange, where it will be listed. The LABEL tokens are paid as copyright compensation for the instructor’s content creation. At the same time, consumers will be using the LABEL tokens as means of payment when purchasing a creation from the LABEL platform and from the platforms of the partnering companies. Apart from that, LABEL tokens will be used as compensation for the promotion of the courses registered by the instructors. In the incubating system, voting and funding for new projects will be filled with LABEL tokens, and the LABEL tokens will be distributed according to the share ratio of the NFT of the course, which is defined by the contribution during the incuba- tion process. The NFT owner of the course may sell the retained shares, and the buyer may purchase them with the usage of LABEL tokens, and the profit generated by the NFT can also be compensated by the LABEL Tokens. 20
4.2. Token Economy
Instructors
Planning
Incubating
Content Users Voting NFT
Partner Platform Crowd Funding
NFT Martket Investors NFT
NFT
Registration Profit NFT NFT Settlement
Course NFT Content Registration
Smart Contract Settlement System
NFT Profit API NFT Purchase Settlement Linkage
Course Content Purcahse User Partner Platform
Content Promotion Compensation
[Token Economy] 21
The above image illustrates the relationship between participants and their roles in the LABEL's Incubating, Smart Contract Settlement System, and NFT Market. The LABEL ecosystem plays a central role in these ecosystems and provides a fair profit allocation structure for instructors to produce, distribute, and receive the accurate compensation for their contributions in the course content production processes.
In order to participate in each of these ecosystems, participants should purchase LABEL tokens from the Digital Asset Exchange. In addition to purchasing through exchanges, LABEL tokens can be obtained in the form of compensation through participation in voting and crowdfunding processes, generating profit through the NFT equity holdings and by contributing to the ecosystem. LABEL token holders are given the opportunity to participate in ecosystems as well as to participate in various events and earn ecosystem rewards. As various pieces of course content are produced and consumed, ecosystems and the platform itself will be expanded and LABEL tokens will be circulated in a virtuous cycle.
LBL Use Case Subject of Use Description
BL tokens are used to distribute profit generated by courses to Profit Allocation LABEL its NFT equity holders.
Voting in Incubation Investor LBL tokens are used to vote on the course selection uploaded on Incubating.
Content distributors who want to partner with LABEL must steak a certain Staking Partner Platform number of LBL tokens.
Crowdfunding When crowdfunding for a certain course is carried out, participants can Participation Investor invest their LBL tokens to the course, that has gained enough votes
LBL tokens are allocated as compensation to users who participate in Reward Provision Learner, Investor incubation voting or participate in the LABEL ecosystem.
Payment Learner LBL tokens can be used to pay for the courses from affiliated distributors.
NFT Trading Investor LBL tokens can be used for NFT P2P transactions in the NFT Market.
[ LBL Token Subject of Use ] 22
4.3. User scenario
Application Case #1: Investor’s Perspective Private investor A is professionally interested in music, therefore he is consistently looking for information for producing and investing in relevant pieces of course content. Investor A is looking for the course content that he can participate in by investing small amounts of funds. Investor A hears news about the LABEL platform that can attract investments in various course content and even distribute those courses to third-party platforms. Investor A will participate in the investment process to support the production of the content of L lecture on LABEL platform. The content of the L Course, which completed the investment fundraising within a week, will be issued as an NFT, that will reflect the NFT Equity Ratio accordingly. Let’s assume that Investor A holds about 5% of shares in that NFT. Thus, Investor A will be able to check the content ROI of L Course according to his NFT Equity Ratio on the LABEL platform in real time and receive his LBL tokens respective to the attributable amount of generated profits. More- over, A investor can also purchase other NFTs from NFT-Market in search of content that is worth investing in on the LABEL platform.
Application Case #2: Partner’s Perspective In case the L Course is placed on the partner’s platform. Contents of L lecture will also be distributed by the partner platforms affiliated with the LABEL platform. Let’s assume that B distributor has established a partnership with LABEL platform to provide contents of L course and also to receive fees for the distribution of the pieces of content cultivated inside of the LABEL. Thus, the content of the L course is further distributed by the B partner company. The B distribu- tor receives API Linkage from LABEL team and applies it in their platform for the distribution of L content according to the affiliate contract. The B distributor further receives a distribution fee, and the proceeds from the content of the L course in circulation are transferred to the LABEL team and distributed to the original L content NFT holders by the LABEL settlement system.
In case the B distributor sells own course content on the NFT-Market Since the B distributor has formed an alliance with LABEL, he will also receive an opportunity to tokenize (NFT) existing course contents to enable equity transactions inside of the NFT Market. The content of B distributor's existing courses are further tokenized and registered in LABEL NFT-Market. B distributor receives API from LABEL team to deliver profit for tokenized course content. Depending on the NFT equity structure of the course content sold, stakeholders will be allocated with profit in LBL tokens by the LABEL settlement system. 23
Application Case #3: Instructor’s and Creator’s Perspective Let’s assume that the C producer and D instructor meet on the LABEL platform to produce the content of the L course. They plan the content of the course, including the division of the shares of the content of the L course, and its production schedule. Therefore, C producer and D instructor calculate that the 30% of their total shares need to be liquidated in order to produce the content of L course. As a result, they initiate a fund to collect resources needed for the production of the contents of the L course on the LABEL platform as planned. On the other hand, the B Distributor has its own fixed stake in the L course content under its affiliate contract. Here, the LABEL platform creates and distributes NFTs based on the share of A investors, B distributors, C producers, and D instructors as the investment in the contents of the L course was successfully attracted. C producer and D instructor can transparently check the profit generated by their L course content inside of the LABEL platform, and receive their profits from the LABEL settlement system in the form of LBL tokens.
Application Case #4: Learner’s Perspective Let’s assume that E learner buys the content of the L course from the B distributor. The E learner who recognized the L course contents to be quite helpful, recommends the L course contents and promotes it on his SNS. In this case, the E learner will be provided with LBL tokens based on their promotional contributions. E learners who have collected LBL tokens by promoting lecture contents usually pay for other lecture contents and take classes. E learners leave evaluations and reviews of the lectures they have taken and receive LBL tokens as compensation for them too. 24
05Key Partner
5.1 OPENTRACK
LABEL team is planning to focus on Incubating the E&M (Entertainment & Media) sector, which can quickly change technology and trends and enable global targets like early IT. One of the secured Key partners, Clesson - is a global educational services company that has accumulated content from 50 foreign artists and 200 domestic artists and has established business agreements and MoUs with 50 prestigious universities around the world, including the United States, United Kingdom, Germany, Canada, Japan and Australia.
OPENTRACK will provide video and interactive systems to learn the deep knowledge and experience of the world's top musicians without space and time constraints. OPENTRACK preoccupied the world's 25 top musicians from seven major countries, including Grammy winners, and specialized lectures are being held focusing on systematic curriculum-based field cases. OPENTRACK is expanding its business to film music, drum, bass, game music, and engineers, showing outstanding performance in K-POP and Guitar with lower prices and easy accessibility compared to offline. 25 26
5.2. Business Plan
According to market research, the Global Edutech market is going to exhibit a steady growth with a CAGR 18.1% from 2020 to 2027, and therefore the market size will reach the estimated worth of 327 trillion KRW by 2027. Among that, the MOOC market, which is directly related to the LABEL’s operating sector, is expected to grow with a CAGR of 40.1% from 4.4 trillion KRW in 2018 to 23 trillion KRW in 2023.
The LABEL team has completed the development of the platform in 2020. And plans to target the Entertainment & Media sector, which is similar to the IT and business sectors that are focused on the existing MOOC services, but has not accumulated much content from the existing platforms yet. Finally LABEL team will become the No. 1 platform in the global market and expand its services to similar fields based on its know-how in the process. 27 28
The LABEL platform is a two-sided business with the theme of Content Incubating Crowd Funding and NFT Copyright Market, and will develop its business with two-track B2C and B2B in terms of content supply and user acquisition.
First, content is secured through contracts with global artists, entertainment companies, and prestigious universities with entertainment-related major courses, and by organizing them within 30 global top 30 in each field, content preoccupy and prevent latecomers from entering.
Content distribution and sales also target students and entertainment company members from entertain- ment-related universities who match the platform's target. In addition, the company aims to develop into one of the best global E&M MOOC educational companies by targeting 30% of the E&M career education market in 2022 by creating revenue from early buyers and customers. 29
5.3. Marketing Plan 30
LABEL team will be collaborating with various business partners in order to supply and distribute a large amount of different pieces of content. So far, Clesson hosted more than 50 master classes and concerts over the past two years, and based on this experience, the company will establish a multifaceted partner- ship with LABEL in order to carry out and integrate innovative entertainment services with content incubating based on blockchain technology. 31
Among many other partners, there is a PlanHear, which happens to be a rising production house with more than 100 in-house producers along with one of the nation's top Idol composers Jung Sung-min. Based on the experience of working with many of the best OST songs in Korea, including SKY Castle and Mystery Shine with Asia's top idol groups such as Wannaone and GOT7, it will greatly contribute to the revitalization of the NFT copyright market.
The highly recognized copyright value through the distribution of the distinguished distribution platform will lead to the participation of artists, companies, and other associated organizations in various relevant fields, and will further impact the inflow of the new users to the platform. On top of everything, LABEL will secure a pool of content providers and production companies through the increased level of product sales, new project investments, and IP-linked projects and will ultimately achieve globalization of the business in the entertainment sector by achieving and distributing fair profits of copyright holders.
The LABEL's incubation of new artists and the investments in the production businesses will expand the user base inside of the platform, accordingly, the expansion of the user base will lead to the increase in the platform sales, which will further cause a rise in the value of tokens. 32
06Partners 33
07Token Distribution
A total amount of 3,000,000,000 LBL Tokens will be issued and distributed in the following way:
Advisor 3%
Team 5%
Reserve 7% Marketing 25%
Ecosystem 15%
Development 25%
Sales 20%
[LABEL Token Distribution] 34
08Team & Advisor
8.1 Team
Steven Douglas Pruitt Hyungjun Kim CEO COO Alumni of the University of North Texas Alumni of the University of Seoul Professor of Practical Music at Howon University (Spatial and Information Department) Doittoit Co., Ltd (CEO) Clesson Co., Ltd (CEO) Ministry of SMEs and Startups' Innovative Startup Task (Blockchain R&D Section) : Contributed to development of the blockchain-based training platform & compensation system for participants SK Planet Manager
Hyungsoon Choi JIN, Yun(金云) CSO CTO Alumni of the Seoul National University Alumni of the Yanbian University (Business Administration Department) Masters and PhD at Chungnam National University Naver Co., Ltd. (Computer Science Department) (Main Service Planning / Management) Senior Researcher at Korea Electronics and EA Korea | Service Manager Telecommunications Research Institute YD Online | Service Manager Konkuk University Engineering College (Computer Science Adjunct Professor) 35
Kyung-Cheol Lee Seongmin, Jung Head of Management Support Division Program Director Alumni of the Konkuk University PLANHEAR (Co-Founder) May1PM Co., Ltd. (CEO) Produced many popular singers and pop artists, Dream Bus Co., Ltd. (Director) including GOT7, Wanna One, IZ*ONE, MONSTA X, and many other OST stars including the World of the Married, Sky Castle, and Mr. Sunshine.
Taewhan Lee Marketing Director MBC Academy - University Business Team Leader CHAMDAHAN (Korean Red Ginseng) - Marketing Team Leader MetaFormula PR Content Section Chief Rosy Organic Marketing Team Leader 36
8.2 Advisor
Dongjin Shin Janny Lee Advisor Global Marketing Advisor Berklee college of music BA Alumni of the Korea University (communication sciences) New York University MA Poonglim industrial CO.,LTD. (marketing team) Adjunct Professor at Hanyang University Take a step Co., Ltd. (CEO) (International College of Arts) Mary jane Co., Ltd. (CEO) The Winner of Silver Medal Great partners Co., Ltd. (Director) at the Jarasum Jazz Festival
Junbum Shin KwanWoo Ko Global Strategic Advisor Global Finance Advisor Alumni of the Hanyang Daham Tax Corporation (City Hall Head Office) University School of Medicine Seo Guk Exchange Tax Accounting Office Works at the New Orthopedic Samryung Tax Corporation (Head Office) Surgery Clinic (Director) Dowon Tax Group (Head of Tax Accounting) Worked at the Park Soon Yong Clinic Hanwon Tax Accounting (Head of Tax Accounting) (Head of Orthopedic Surgery) Korea Economic Management Support Team (Advisory Committee Member) Zaytun Unit Medical Transmission Troops Orange Life (Advisor) (A Commendation for the Distinguished Services) Member of the Youth Taxation Committee of Member of the Korean Association the Seoul Regional Tax Society of Orthopedic Surgeons Member of the Seoul Regional Tax Society Supervision Committee Member of the Korean Fracture Society Member member of the Seoul Regional Member of the Korean Medical Ultrasound Association Tax Society's Tax System Research Committee AO trauma course Korean Youth Tax Society (Director) TPI Course Consulting & Tax Audit (Portfolio): Kumho, Hanssem, Harim and many other companies Advisory (Portfolio): Harim, Diddy F&B, Hoban and many other companies 37
09Roadmap
2020 Q2~2020 Q3 LABEL Idea & Business Feasibility Verification Phase TEAM Building Whitepaper 1.0 Ver. Release Architecture Construction & Designing OPENTRACK Platform Beta Ver. UI/UX Designing 2020 Q4 OPENTRACK(MUSIC) CP Partner Establishment OPENTRACK(MUSIC) Beta-Test Label ERC-20 Base System Construction & Testing Private Round Token Sale OPENTRACK(MUSIC) Acquisition of 50+ Global CP Partners 2021 Q1 Whitepaper 1.1 Ver. Release OPENTRACK(MUSIC) Official Version Launching OPENTRACK Platform In Reward System Application Label Wallet Release Transaction System Development & Side-Chain System Construction OPENTRACK in-Platform ERC-20 Base Label System Release & Application 2021 Q2 OPENTRACK in-Platform Label Wallet Application Structure Design of Settlement Contract (Calculation of OPENTRACK(VIDEO) CP Partner Recruitment the Ratio of the ownership according to the contributions in the Application of the Settlement Contract (Calculation process of production) of the Ratio of the ownership according to the contributions in the process of production) in OPENTRACK Platform LABEL INCUBATING SYSTEM UI/UX Configura- tion 2021 Q3 OPEN INCUBATING SYSTEM Development NFT Transaction System Construction Connect to OPENTRACK Platform OPENTRACK(VIDEO) Beta-Test
2021 Q4 OPENTRACK(VIDEO) Official Version Launching OPEN INCUBATING SYSTEM Beta-Test Developing NFT Transaction System Connect to OPENTRACK Platform 38
2022 Q1 OPEN INCUBATING SYSTEM Official Version Launching OPENTRACK(Music) INCUBATING Commencement OPENTRACK(Video) INCUBATING Commencement OPENTRACK(Design) INCUBATING Commencement OPENTRACK(DESIGN) Beta-Test 2022 Q2 Development Completed NFT Transaction OPENTRACK (DESIGN) CP Partner Recruitment System Connect to OPENTRACK Platform NFT Exchange System Design
2022 Q3 Application Beta-Test OPENTRACK Platform Contents NFT Exchange System in OPEN INCUBATING OPENTRACK (DESIGN) Official Version Launching
2022 Q4
OPENTRACK Platform STAR(Music, Video, Design) Multilateral Contract and NFT Exchange System Transaction Calcula- tion Connection & Test 2023 Q1 NFT Exchange System Launching in OPEN INCUBATING 39
Disclaimer10
Please, read the following content carefully before engaging in any investment activities in this project. The following applies to anyone who reads the LABEL WHITEPAPER (hereinafter referred as the “Whitepaper”). This Whitepaper is provided by LABEL team (hereinafter referred as “LABEL team”) on an “as is” and “as available” basis, and at any time at its sole discretion, and does not guarantee that any content in this Whitepaper will remain unchanged until the future.
If there is any doubt about the content of this white paper, you should consult with an accountant, attorney, or other specialists before purchasing.
1. The White Paper is written to provide information on the LABEL project which the LABEL team intends to launch, and it is descriptive and not legally binding. Therefore, any content in the Whitepaper should not be considered as an invitation or an incentive to attract participation in any investment.
2. LABEL team does not provide investment or financial advice, and this Whitepaper does not constitute any relations between the buyer and the seller. The statements and information contained herein are not about the present but the future prediction. Please be informed that the statements and information based on the future forecasts in this Whitepaper are uncertain as including known and unknown risks, and the actual outcome may differ from the one predicted by participants based on the statements and information herein, or the one that this Whitepaper implies and presents.
3. To the maximum extent permitted by applicable law, LABEL team itself and any director, agent, employee, distribution partner and any representative of LABEL team is unconditionally waived for claims of all and any direct, indirect, incidental, punitive, or consequential damages as following: (1) the accuracy and completeness of any contracts according to the Whitepaper; (2) any error or omission of the Whitepaper; (3) inability to peruse the Whitepaper due to undefined causes; (4) or other whether arising in contract, tort or otherwise, which may occur as a result of your use of(or inability to use) this Whitepaper or from your use of (or failure to use) the information on this Whitepaper.
LABEL team shall not be liable for any loss or damage which may arise as a result of your use of(or inability to use) this Whitepaper or from your use of (or failure to use) the information on this Whitepaper regardless of prior notice being given or any predictable loss of: (1) profit, revenue, debt and all other forms of monetary damages; (2) Income, sales, capital loss, liability and other losses incurred during business transactions, business activities, and operating profit-related activities; (3) data loss or corruption; (4) incidental or special damages; (5) wasted or lost administrative time; (6) whatever nature, direct, indirect, consequential, punitive, or other whether arising in contract, tort or otherwise 40
technological advances, and changes in ICO or token regulations. However, LABEL team is not obligated to inform or report to readers about events, platforms, plans, changes in estimates, or changes in toler- ance in this Whitepaper.
5. This Whitepaper is aimed to provide the information, for reference only, of the business being contem- plated by the LABEL team, not to offer any advice or recommendation on law, tax, finance, accounting, regulations, or others. Please be aware that there may be possible financial risks during irregular periods as a result of the purchase and sale of coins and tokens. Participants should seek appropriate counsel for their situations. Please consult professional financial, investment, and tax advisers before making any investment in LABEL. In purchasing and selling coins or tokens, participants shall make a decision, considering potential profits and other possible disadvantages from such transactions after consultation with each expert in the law, tax, finance, accounting, regulations, and others.
6. It is the sole responsibility of LABEL purchasers and potential participants to check legal dispositions such as income tax that may arise with regard to the acquisition and disposition of LBL tokens, and the possibility of foreign currency exchange. LABEL team highly encourages participants to find and under- stand the obligations regarding disclosure.
7. The publication and distribution of this Whitepaper are prohibited in countries where publication and distribution of whitepapers are forbidden. The information contained in this Whitepaper has not been validated or approved by any regulatory agency, and any action that violates the law is not valid for the LABEL team. We do not guarantee that the publication or distribution of this Whitepaper complies with all regulatory requirements of the country in which it is issued.
8. The given English Whitepaper is the only official source of information regarding the LABEL project and the launch of LABEL. The information contained in the Whitepaper may be translated into other languag- es or used to communicate with potential partners and project participants. As a result of the translation of Whitepaper, some of the information contained in the Whitepaper may be missing, damaged, or misrepresented. If there is a conflict between the translation and English version of the official Whitepa- per, contents of the English version of the official Whitepaper will prevail. However, this fact does not imply that LABEL team, affiliate, and its directors, employees, or representatives are legally liable for the content of Whitepaper.
9. LABEL Whitepaper is copyrighted. You may download or print individual sections of the Whitepaper only for personal use or other proprietary notices. No part of this Whitepaper may be reproduced in whole or in part, reproduced electronically or otherwise, or modified, linked, or used for public or commercial purposes without the prior written consent of LABEL team. 41
Risks The LABEL team is aware of various kinds of risks, including a loss of purchase price. No warranties, promises and/or representations of any kind, expressed or implied, are given as to the nature, standard, accuracy or otherwise of the information provided in this Whitepaper nor to the suitability or otherwise of the information to your particular circumstances. The LABEL team does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained on this Whitepaper.
Purchasers are deemed to have consented to the purchase and sale of a LBL token to be aware of and purchasing a LBL token as is, without any warranties of any kind whatsoever.
1. Blockchain Risk: Blockchain system congestion may cause transactions to be processed late or invali- date. In particular, smart contracts responsible for issuing and distributing LBL tokens are based on the technology known as Ethereum Blockchain. The Ethereum protocol may have weaknesses and vulnerabil- ities, and also may cause various bugs, including bugs where LBL tokens are lost. Also, monetary damage may occur to LABEL team and LABEL participants due to those problems of the Ethereum Blockchain.
2. Transaction privacy leakage: Your personal information is required to distribute and control LBL tokens in the purchasers' electronic wallet. LBL token stored in the wallet may be changed or lost due to an internal or external factor such as attack from malicious code, software bugs, blockchain networks error, and more. Transaction privacy leakage can facilitate the leakage of confidential information, theft of cryptographic keys and therefore cause LBL token leakage from the purchasers’ e-wallet.
3. Security vulnerabilities: Like all other cryptocurrencies, Ethereum blockchain faces its security flaws as hackers can exploit these systems by ‘Double spending‘ or ’51% attack’. These vulnerabilities in Ethereum blockchain thus may lead hackers to attack LABEL team or LABEL and steal millions and billions of LBL tokens in one go.
4. E-Wallet compatibility risk: Participants must use an electronic wallet that is technically compatible with the LBL token to purchase or store a LBL token. If a participant is using a different wallet, the participant may not be able to access the purchased LBL token.
5. Force majeure: LABEL is now under development, and the LABEL team makes every attempt to ensure to develop and maintain the LABEL as it is described on this Whitepaper. However, the policy and regulatory framework around blockchain is in its infancy and therefore there is a risk that the LABEL team either failed to adhere to regulatory requirements for the specific use case and technology, or new laws or regulation may conflict with current LABEL project functioning. LABEL team will be exempted from any liability for damages and losses of value and/or liquidity of LBL token subject to force majeure 42
factors such as changes in regulatory frames required licenses and taxation policies, the emergence of platforms or open source that adversely affect the LABEL team or LABEL, the lack of market interest, or others.