Redefining Financial Infrastructure for Intellectual Property

RECORD Nexus is more than a modular blockchain ecosystem—it is the foundation for a future where intellectual property (IP) is liquid, programmable, and universally accessible. Originating from the music industry, RECORD is creating a revolutionary marketplace for royalties and IP-derived income, designed for seamless expansion across all IP-rich sectors.

Why IP? Why Music?

We see intellectual property as the next frontier of global finance. Music, with its transparent and globally recognised royalty structure, provides an ideal foundation. By starting with music, RECORD is not limiting itself but using it as a strategic platform to reshape how value is generated, shared, and monetized across all creative and industrial IP classes.

Addressing Liquidity, Transparency, and Accessibility

Traditionally, IP assets have been illiquid, opaque, and exclusive. RECORD introduces decentralised financial tools that revolutionise capital access for creators, simplify yield generation for investors, and bring transparency to IP valuation. This innovation democratises IP finance, opening it to a global, borderless token economy.

A Connected Network of Stakeholders

RECORD aligns Issuers (IP rights holders), Investors (both retail and institutional), and Underwriters (risk assessors and asset curators) within a transparent, integrity-driven protocol. Our ecosystem promotes scalable participation and collaborative growth.

Infrastructure for IP Financialisation

• RECORD Notes (RLNs): Structured debt instruments secured by future royalty streams.

• RECORD Pools: Diversified, fractional ownership in portfolios of IP assets.

• RECORD IP Yield: A liquid, tradable yield token bringing IP yields to everyday investors.

• RECORD Guard: Decentralised risk management pools safeguarding ecosystem capital.

• RECORD Token: Core ecosystem token for governance, staking, and participant alignment.

From Issuance to Yield: A Composable Financial System

Every IP transaction undergoes structured underwriting, tokenisation, and clear, automated investment processes:

1.Notes Issued → 2. Pooled or Directly Purchased → 3. Royalties Distributed → 4. Risk Dynamically Managed

The complete lifecycle is driven by decentralised smart contracts, community-led governance, and transparent collateral management.

Roadmap for Protocol Evolution

Phase 1 – Foundation: Launch tokenised royalties as foundational asset-backed instruments.

Phase 2 – Liquidity: Introduce $YREC token to provide liquidity and composable yield solutions.

Phase 3 – Transparency: Move financial operations on-chain, enabling real-time payments and automated compliance.

Phase 4 – Infrastructure: Deploy dedicated blockchain infrastructure supporting dynamic IP, AI-based licensing, and native metaverse IP.

Our product suite unlocks institutional access to IP-backed financing, with each component strategically designed to create a modular and interoperable capital market infrastructure. Through partnerships with RWA-focused Layer 1 platforms, we initially deploy a streamlined execution layer to validate our products with diverse stakeholders before migrating onto a dedicated Layer 1 blockchain specifically optimised for IP tokenisation.

The RECORD ecosystem is structured around two key entities, each dedicated to distinct yet complementary roles, enabling clarity, accountability, and scalability within the ecosystem.

The Association (RECORD)

• Type: Not-for-profit Association (Verein)

• Role: Governance, Ecosystem Stewardship, Research

RECORD Verein acts as the non-profit steward of the ecosystem, responsible for strategic direction, governance, regulatory compliance, and the maintenance of open and decentralized infrastructure. Its mission includes ensuring ecosystem transparency, managing public-good initiatives, and guiding the decentralised evolution of RECORD’s blockchain infrastructure and token economy.

The Advisory Company (RECORD Partners)

• Type: Private Advisory & Structuring Firm

• Role: IP Deal Origination, Due Diligence, Market Facilitation

RECORD Partners serves as the institutional advisory firm, bridging IP owners (artists, labels, rights holders) with institutional and retail investors. It is responsible for sourcing, structuring, and underwriting royalty-based financial products. By maintaining rigorous due diligence and professional standards, RECORD Partners ensures high-quality investment opportunities, driving adoption and scaling the ecosystem.

Dual-Entity Structure

This governance model balances decentralization and market efficiency, aligning mission-driven stewardship with professional financial market standards. It ensures RECORD Nexus remains accountable, transparent, and equipped for institutional adoption while progressing towards decentralization and community-driven governance.

Why RECORD Nexus?

RECORD Nexus solves a critical inefficiency in global finance: intellectual property (IP) remains an underutilised and inaccessible asset class, despite its enormous potential. Specifically, the music industry—which generates assets with highly attractive characteristics for traditional investors, such as a lack of correlation with financial markets—remains largely excluded from broader investment opportunities.

Through blockchain technology, smart contracts, and tokenisation, RECORD Nexus creates the financial infrastructure needed to bridge this gap. Our ecosystem democratises music royalties, opening access to previously exclusive investment opportunities for both institutional and retail investors, while laying the groundwork to extend these benefits across the entire spectrum of IP assets.

Ecosystem Overview

RECORD Nexus combines secure governance, institutional-grade operations, and blockchain infrastructure. The ecosystem seamlessly integrates capital inflow, IP asset creation, transparent risk management, and token-driven governance.

Why IP? Why Music?

Intellectual property stands out as one of the most undersized asset classes. Music IP, particularly streaming royalties, generates income streams that are resilient and can be effectively modeled using data-driven approaches This makes music IP an ideal initial focus, offering low correlation with traditional assets and stable returns even during economic downturns.

Starting with music, RECORD Nexus's modular design is built to scale efficiently to include other creative, media, entertainment, and industrial IP sectors, establishing a new standard for IP finance.

Addressing Inefficiencies in Music Finance

Currently, investing in music IP is fragmented, opaque, and restricted to insiders, leading to poor pricing accuracy and limited liquidity. RECORD Nexus addresses these inefficiencies by:

• Tokenising Royalty Streams via RECORD Notes (RLNs).

• Aggregating Investment Opportunities through diversified RECORD Pools.

• Providing Liquid Investment Access with $YREC (RECORD IP Yield).

• Managing Risk transparently via RECORD Guard.

• Aligning Ecosystem Incentives through the $RECORD governance token.

Automating IP financing with transparent, blockchain-based mechanisms greatly enhances yield accuracy, capital efficiency, and investment accessibility.

The Market Opportunity

Currently, two main pathways exist for investing in music:

1. Direct IP Rights Purchase: Buying catalogs outright, typically requiring substantial upfront capital and insider market access.

2. Royalty Advances: Exchanging upfront capital for a fixed portion of future royalties, offering attractive yields yet remaining illiquid and opaque.

These methods are limited, expensive, and opaque. RECORD Nexus resolves these limitations by creating scalable, liquid, and transparent investment products, unlocking significant yield potential previously restricted to insiders.

Web3 and Real-World Asset (RWA) Adoption

Music’s global popularity provides an intuitive gateway for mass Web3 adoption. By harnessing blockchain's power, RECORD Protocol connects mainstream music markets with decentralized finance (DeFi), making crypto finance intuitive, transparent, and directly tied to tangible real-world value.

With its practical approach to tokenizing billions in annual music royalties, RECORD Nexus represents a significant leap forward for real-world asset finance on the blockchain, bridging cultural relevance with financial innovation.

Royalty-Linked Notes (RLNs) are structured, tokenized financial instruments secured by future royalty revenues from music catalogs. They provide rights holders—such as artists, labels, and publishers—with upfront capital in exchange for assigning their future royalty streams.

Revenue-Backed, Not Debt-Based

RLNs transfer economic rights to future royalties, differing fundamentally from traditional loans. Investors receive repayments directly linked to royalty performance from the revenue originating platforms.

Built-In Legal Safeguards

RLNs include critical investor protections:

• Irrevocable Assignment: Economic rights fully transferred for the RLN term.

• Bankruptcy Isolation: Protection against claims in issuer insolvency.

• Enforcement Terms: Defined penalties triggered by issuer non-compliance, ensuring strong contractual protection.

Dynamic Return Structure

The innovative maturity structure aligns stakeholder incentives:

• Minimum Return Threshold: Note maturity extends automatically if performance falls below set benchmarks, giving a protection to investors.

• Maximum Return Cap: Early closure when returns exceed performance expectations, securing investor gains, reducing the friction for right holders.

Due Diligence and Pricing

Every RLN undergoes independent underwriting and third-party validation, ensuring transparent pricing, risk clarity, and consistency across the ecosystem.

RECORD Pools aggregate capital, manage underwriting, and allocate risk for music IP investments, providing a structured and transparent platform for both issuers and investors.

Issuer-Defined, Protocol-Governed

Issuers specify deal parameters such as asset, yield expectations, maturity, capital requirements, and underperformance clauses. Issuers stake $RECORD tokens as underwriting fees, aligning interests and signalling commitment, refunded upon full capital repayment.

Risk-Managed Structuring

Pools undergo dual-layer diligence:

• Internal Review: RECORD Underwriters evaluate asset performance and risk.

• Independent Validation: Third-party assessments confirm deal quality and projections.

Investor Participation

Investors allocate capital fractionally, receiving NFT-linked claims for transparent tracking of contributions, yields, and redemptions, enabling potential secondary market liquidity.

Modular Finance Design

RECORD Pools serve as composable financial building blocks, standardising risk, capital allocation, and redemption processes to enable auditable and decentralised IP finance.

RECORD Guard is the decentralized risk-sharing mechanism protecting investor capital against asset underperformance or default across active pools.

Operational Mechanism

Investors fund RECORD Pools secured by future royalties.

In cases of underperformance or default, Guard compensates investors using staked $RECORD tokens.

Guard provides systemic risk management, enhancing investor confidence and stability.

Staking & Yield

Participants stake $RECORD tokens to underwrite the entire protocol, receiving performance-based yields. Guard operates as a protocol-wide, collateral-backed insurance, incentivizing robust ecosystem security.

Activation Conditions

Guard triggers upon:

• Underperformance against expected returns.

• Asset default or cessation of royalty streams.

• Systemic risk events affecting multiple pools.

Composability

Guard integrates seamlessly with RECORD Pools, offering transparent, auditable risk management and potential integration into broader DeFi risk frameworks.

The native token powering ecosystem governance, risk-sharing, and incentive alignment:

• Governance (voting, proposals).

• Risk underwriting via Guard (in progress).

• Credibility signaling within Pools (in progress).

• Collateral commitments from issuers (in progress).

The $RECORD token strategically aligns stakeholder interests, embedding governance directly into the protocol's financial infrastructure.

$RECORD as a Multichain Token

$RECORD is deployed as a multichain token powered by LayerZero, an omnichain interoperability protocol that enables native token messaging across blockchains. This allows $RECORD to maintain a single, unified total supply across multiple chains, rather than fragmented wrapped versions.

To ensure seamless, secure movement of $RECORD between supported networks, we use Stargate, the liquidity transport layer built on LayerZero. Stargate facilitates native asset transfers with instant finality, deep liquidity, and minimal slippage.

How it works:

1. LayerZero provides the messaging layer for verifying and executing token transfers across chains.

2. Stargate handles the actual bridging of $RECORD tokens using unified liquidity pools.

3. Users can move $RECORD from one chain (e.g., Plume) to another (e.g., Solana or Base) without wrapping or manual mint/burn steps.

4. The RECORD token contract remains fully synchronised across chains, preserving governance and utility wherever the token travels.

$RECORD Contracts

$RECORD links

$YREC provides liquid, diversified exposure to royalty-backed Notes, simplifying IP investments for institutional and retail participants.

Operational Mechanics

• Minting: Accredited Liquidity Providers deposit stablecoins to mint $YREC.

• Investment Allocation: Capital deployed strategically across vetted pools.

• Yield Distribution: Automated, proportional royalty distribution via smart contracts.

• Redemption: Flexible stablecoin redemption mechanisms based on liquidity reserves.

Price Stability

Each $YREC represents one dollar invested in the underlying portfolio of royalty-linked notes. Its value is backed by the assets held in the pool, and its price is expected to remain stable and anchored to the dollar. Temporary fluctuations due to illiquidity may occur, but these are mitigated through supply and demand-based minting and redemption incentives, which help maintain a functional equilibrium.

Market Accessibility

$RECYLD circulates on regulated platforms, bridging traditional and crypto markets, democratising investment in music royalties.

Our roadmap outlines clear, achievable phases designed to steadily expand the RECORD Nexus ecosystem, allowing the community and partners to track our progress with clarity and simplicity.

Phase 1 — Building the Foundation

We are actively establishing relationships with IP owners and investors, launching our first set of Royalty-Linked Notes (RLNs). These structured financial products tokenize future royalty revenues, creating a new asset class for investors and enabling IP rights holders to access capital efficiently. This phase sets underwriting standards, investor onboarding procedures, and introduces the foundational tools for ecosystem growth.

Phase 2 — Increasing Liquidity and Flexibility

In this phase, we introduce $YREC a token providing liquid exposure to diversified IP portfolios. By pooling RLNs, $YREC offers investors tradable and flexible investment opportunities, overcoming traditional liquidity barriers. This phase will also unlock integration with decentralized finance (DeFi), including staking, lending, and composability with other blockchain assets.

Phase 3 — Enhancing Transparency and Real-Time Distribution

Here, RECORD Nexus implements on-chain financial flows and automated royalty distributions. This upgrade ensures complete transparency for investors and IP rights holders, allowing real-time tracking and distribution of royalties. Additionally, the activation of RECORD Guard provides decentralized risk management and further secures ecosystem participants.

Phase 4 — Next-Generation IP Infrastructure

In the final phase, RECORD Nexus launches a specialized Layer 1 blockchain dedicated to creative and industrial IP. This blockchain enables advanced IP registration, cross-chain licensing, NFT-based rights management, AI-driven licensing mechanisms, and metaverse-ready IP frameworks. Built for efficiency and compliance, this infrastructure will scale beyond music into broader entertainment, technology, pharmaceuticals, and more.

Stay in the loop and shape what comes next.

Twitter / X

The pulse of the protocol. Updates, market insights, governance highlights, and Web3 music commentary.

→ Follow @RECORD

Telegram

Real-time updates, community polls, soft conversation.

→ Subscribe to Alerts

→ Join the Global Chat

Link3

Verified ecosystem updates, cross-chain announcements, and contributor profiles.

→ Visit RECORD on Link3

LinkedIn

For institutional news, team updates, and partnership reveals.

→ Follow on LinkedIn

CoinMarketCap

Track token metrics, performance, and listings.

→ RECORD on CoinMarketCap

Join the RECORD Movement

Building the future of IP-native finance — together.

RECORD is more than a protocol — it’s a collective effort to reshape how intellectual property is valued, funded, and traded. Whether you’re a rights holder, developer, investor, or curious mind, there’s a role for you in our growing community. This is where music meets finance, where creativity becomes yield, and where culture becomes capital.

Choose Your Role, Join Your Path

Amplify the vision, consistently and confidently.

We’ve curated a clean, accessible brand kit so builders, creators, and media teams can represent RECORD with clarity. Whether you’re crafting an integration, pitch deck, social post, or demo app — these assets are yours to use.

What’s Inside:

• Logo variations (horizontal, stacked, monochrome)

• Usage guidelines (do’s and don’ts, spacing, backgrounds)

• Color palettes (core and secondary)

• Typography specs (typefaces, weights, sizes)

• File formats (PNG + SVG for all major uses)

→ Download Brand Kit

→ View Full Usage Guidelines

PLEASE READ THE ENTIRETY OF THIS "LEGAL DISCLAIMER" SECTION CAREFULLY. NOTHING HEREIN CONSTITUTES LEGAL, FINANCIAL, BUSINESS OR TAX ADVICE AND YOU SHOULD CONSULT YOUR OWN LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S) BEFORE ENGAGING IN ANY ACTIVITY IN CONNECTION HEREWITH.

This Documentation contains forward-looking statements that relate to Web3 Music Association (“The Association”) current expectations and views of future events. These statements may prove to be incorrect and may be influenced by inaccurate assumptions, unknown risks, uncertainties, and other factors beyond The Association's control. It is expected that some of these assumptions may not materialise or may significantly differ from actual results.

The Documentation is provided for informational purposes only and does not constitute a prospectus, advice, offer document, offer of securities, solicitation for investment, or any offer to sell any product, item, or asset in any jurisdiction. The Association and its officers, directors, advisors, agents, partners, representatives, consultants, and employees make no express or implied representation or warranty regarding the adequacy, accuracy, or completeness of the information in the Documentation or the described project.

The Documentation has not been reviewed or approved by any competent authority in any Member State of the European Economic Area or in any other jurisdictions and does not constitute a prospectus within the meaning of the capital market regulations. Prospective purchasers should make their own independent evaluation of all risk factors and should read the detailed information set out elsewhere in the Documentation. Other risks and uncertainties unknown to The Association or considered insignificant at this time could equally have a material adverse effect on the business, operations, financial conditions or prospects of The Association.

The Association as a Technology Provider

The Association’s role is strictly limited to providing technological infrastructure to support the management and processing of music-related assets. As a technology provider, The Association delivers blockchain-based tools and solutions that facilitate these processes but does not offer financial services, investment products, securities, or any form of investment advice. The Association does not engage in issuing, managing, or selling financial instruments.

The platform is designed to be used by regulated entities that choose to integrate The Association's technological functionalities into their operations. It is important to note that The Association remains distinct from financial service providers and does not function as an investment or financial services company.

Phased Development

The project is in its early stages, with most of the functionalities outlined in this document planned for future development. Many features are still under development and do not yet exist. The implementation will proceed in multiple phases, each contingent on regulatory approval and technical feasibility.

The phases are subject to change based on regulatory requirements, technical progress, and other factors. There is no guarantee that all functions described will be realised or will be implemented in the exact form stated. Each phase will proceed only after obtaining any necessary regulatory approvals. Accordingly, you should be aware that some project features may never be realised, and the implementation of various functions may differ significantly from what is described due to regulatory changes, technical challenges, or market conditions.

Risks Related to Development Phases

The implementation of the platform’s functionalities is subject to various risks, including:

• Delays and Technical Issues: Any delays, technical problems, or failures during the development of different phases may impact the overall project timeline and the usability of the platform’s functionalities.

• Resource Constraints: There may be unforeseen financial, resourcing, or technical challenges during development. These challenges could compromise the project’s progress, potentially leading to failure, termination, or indefinite delays.

• Regulatory Challenges: Each phase may require obtaining specific regulatory approvals. Regulatory authorities may impose additional requirements or restrictions, which could delay or prevent the implementation of certain features.

• Market and Operational Risks: Market conditions, user adoption rates, or operational challenges could affect the feasibility of deploying new functionalities as planned.

Development of RECORD IP Yield ($YREC)

The RECORD IP Yield ($YREC) does not currently exist. It is part of the planned future development and will be subject to regulatory approval before any potential issuance. The information presented is intended for informational purposes only and should not be considered an offer to sell or a solicitation to buy any securities or financial instruments. The launch and availability of RECORD IP Yield ($YREC) will depend on successful regulatory approval. Please note that the details, features, and terms of the product may change as the design and regulatory review process continues. Potential purchasers should stay informed through official channels for updates on the status of the RECORD IP Yield ($YREC).

Regulatory Status of $RECORD Token

The $RECORD Token is considered a utility token under the current Swiss regulatory framework and not a security or payment token, as per FINMA’s interpretation provided to The Association. Consequently, the issuance of the $RECORD Token by The Association is not subject to the Anti-Money Laundering Act and does not require a prospectus under the Financial Services Act. Furthermore, FINMA confirmed that no other financial market laws in Switzerland, including the Financial Market Infrastructure Act are applicable to the $RECORD Token.

Authorization by The Association

No person is authorised to provide any information or to make any representation not included in the Documentation, and any information or representation not contained herein must not be relied upon as having been authorised by The Association.

Changes to the Project

The project may be updated and modified without prior notice. The Association is not obligated to update any forward-looking statements, even if they become incorrect or misleading due to new information, future events, or other circumstances. Additionally, The Association may face challenges during product development, including financial, resourcing, and technical difficulties. These difficulties are unpredictable and may be unsolvable, potentially compromising the overall project development. The project may fail, terminate, or experience delays at any time for any reason. Certain project features may never be realised, which could significantly reduce or completely eliminate the utility of $RECORD Tokens.

Legal status of $RECORD Token and Project is untested

Certain jurisdictions might apply already existing laws and regulations to blockchain technology-based projects or introduce new laws or regulations for this purpose. In particular, $RECORD Tokens may at any time be deemed to be a security, investment, asset or money by governmental authorities or regulators. This could lead to substantial modifications, termination, and/or loss of $RECORD Tokens. The Association may receive formal or informal queries, notices, requests, or warnings from governmental authorities and regulators. Regulatory action may be taken against The Association or the project.

No assets, property, governance or security right underlying $RECORD Token

​​In particular, $RECORD Token does not represent or constitute any intellectual property rights, ownership rights or stake, shares or security, membership right or equivalent rights nor any right to receive future revenues, shares or any other form of participation or governance rights in or relating to The Association. Due to the no security right, The Association is not to be construed, interpreted, classified or treated as debentures, stocks or shares issued by any person or entity, rights, options or derivatives in respect of such debentures, stocks or shares, rights under a contract for differences or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss, units in a collective investment scheme, structured products, units in a business trust, derivatives of units in a business trust.

Possible migration of the $RECORD Token

The Association may migrate the $RECORD Token to another protocol and generate replacement tokens on the new protocol if deemed necessary or useful. In such a case, support for pre-existing tokens or any other operational matters may cease, except during the migration process.

Reliance on the Internet

$RECORD Tokens and the project heavily rely on the internet. However, the public nature of the internet means that it may be unreliable or unavailable at any given time. Data transmission via the internet may be subject to interruption, delay, corruption, loss of confidentiality, or other issues.

Reliance on Blockchain Platform

The $RECORD Token holders need to have sufficient understanding of the functionality, usage, storage, transmission mechanisms and other material properties of cryptographic assets, wallets and other token/asset storage mechanisms, public and private key administration, blockchain technology, and blockchain-based software systems. The $RECORD Tokenholders understand, recognize and acknowledge that such understanding allows the $RECORD Tokenholders to appreciate the implications and risks of purchasing $RECORD Token. The $RECORD Token Tokenholders understand and accept the risk that the smart contract system concept, the underlying software application, the software platform and ecosystem architecture are at an early developmental stage and yet to be proven. There are no warranties or guarantees that the process for creating $RECORD Token will be uninterrupted or error-free and there is an inherent risk that the software could hold weaknesses, vulnerabilities or bugs causing, inter alia, the complete loss of the contributed value and/or $RECORD Token.

The blockchain technology is experimental, and risks associated with reliance on it include technical flaws, malicious targeting, changes in consensus protocols or algorithms, decreased community or miner support, existence of competing networks or platforms, existence of forked versions, flaws in scripting languages, disputes, and regulatory actions.

No liabilities

The Association, its officers, directors, advisors, agents, partners, representatives, consultants or employees will not be liable for any direct, indirect or consequential loss, or damage suffered by any person relying on any representation or omission made in the Documentation and, to the fullest extent permitted by law, all conditions, warranties and other terms which may be implied by law and any such liability are expressly excluded.

Market and industry information

The Documentation may contain market and industry information obtained from a variety of sources, including internal surveys, reports, studies, market research, and industry publications. While reasonable efforts have been made to ensure the accuracy and completeness of this information, there is no guarantee of its reliability.

General comment on risks

Purchasing $RECORD Tokens carries inherent risks, including but not limited to blockchain-related risks, project abandonment or lack of success, regulatory risks, and jurisdiction-related risks. These risks, and additional risks arising either now or in the future, could result in the failure of the $RECORD Tokens transfers, the destruction of the $RECORD Tokens or the utility of the $RECORD Tokens, and/or the termination of the development of The Association.

There is a possibility that the purchase amount may be unrecoverable and/or that the $RECORD Tokens may cease to have inherent intrinsic value. Many factors, most of which are beyond the Association's control, will influence the value of the $RECORD Tokens and the price, if any, at which market participants may be willing to purchase or sell $RECORD Tokens in the secondary market. The purchase of $RECORD Tokens involves the risk that subsequent changes in relative market performance may adversely affect the value of $RECORD Tokens.

IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU SHOULD CONSULT YOUR LEGAL, FINANCIAL, TAX, OR OTHER PROFESSIONAL ADVISOR(S).

THE DOCUMENTATION IS FOR INFORMATION PURPOSES ONLY AND MAY BE SUBJECT TO CHANGE.

PREAMBLE

1. The following Terms of Service (the “ToS”), available on the websites record.nexus, webmusic.org, musicprotocol.finance, musicprotocol.io, sub-domains included (the “Site”) govern all access and use of the Site, provided to You as a Visitor. By accessing and using the Site, You agree to be legally bound by the ToS then in effect.

3. The Site is owned and operated by Web3 Music Verein (Web3 Music Association), a company duly existing and incorporated under the laws of Switzerland, with registered office in Zug, Baarerstrasse n. 141 registered at the Registrar of Companies of Zug with Number CHE-184.859.454 (“The Association” or “We”).

4. The Association is helping build the future of the music industry alongside its members. The Association exists to lead and define the next technological evolution with its members to provide opportunities to protect and monetise music IP in new ways.

5. The Site, the domain record.nexus, webmusic.org, musicprotocol.finance, musicprotocol.io and its subdomains are the exclusive property of The Association.

6. All information and materials published, distributed or otherwise made available on the Site are provided for informational purposes, for your non-commercial, personal use only. No information or materials published on the Site constitutes a solicitation, an offer, or a recommendation to buy or sell any investment instruments, to effect any transactions, or to conclude any legal act of any kind whatsoever.

7. The ToS is provided subject to Your acceptance without modification of the Agreement and all other operating rules, policies (including, without limitation, The Association s Privacy Policy) and procedures that may be published from time to time on the Site by The Association .

8. The Association reserves the right, in its sole and absolute discretion, to amend, modify, alter or supplement the Agreement, as well as the information and materials contained in the Site, from time to time. Therefore You are recommended to visit this page periodically to review the most current ToS, because they are binding on You. By continuing to access the Site after updated ToS have been posted, You agree to be bound by the updated ToS.

1. ACCEPTANCE OF THE TOS

1. By accessing and using the Site, You implicitly accept the ToS, thereby entering into a legally binding agreement with The Association .

2. If You do not agree with any of these provisions, We strongly recommend You to cease accessing and using the Site.

2. CONDITIONS OF USE FOR THE VISITOR

1. You may access and use the Site for its purposes as intended by the normal functionality of the Site, as long as You are in compliance with all provisions of the ToS.

2. You undertake to:

   1. not to use the Site, in an improper manner, for purposes that are not permitted by law or contrary to morality, to spread computer viruses, to perform activities that may compromise the security of the Site or damage it, to access the Site using automated tools (such as collection bots, robots, spiders or scrapers);

   2. provide their true data;

   3. not to violate any term of the Agreement applicable to the You, depending on the Applicable Laws and the Privacy Laws of Switzerland and/or of the country in which You are located and/or of the country in which he/she resides, or in any case applicable to the activities You carry out;

   4. to respect the rights of W3M and/or of Third Parties.

3. The Visitor acknowledges and accepts that:

   1. The Association will process Your data in accordance with the provisions of the Privacy Policy;

   2. The Association will provide the Site according to the needs related to any scheduled or extraordinary and unmissable maintenance work;

   3. the contents of the Site are for information purposes only, unless where otherwise specified and subject to additional terms and conditions;

   4. the costs of connection to the Internet network, and those possibly related to the connection modalities, are at Your expense.

3. RIGHTS OF THE ASSOCIATION

1. The Association has the right to:

   1. modify, update, suspend, limit or interrupt the operation of the Site at any time, or change and/or replace its domain name;

   2. analyse the traffic on the Site (g. detect the most visited pages, the number of visitors per hour or per day, the geographical origin, the average connection time, the browsers used, the origin of the visitor – from search engines or from other Sites -, phrases and words searched for, etc.) in order to understand how it is used and manage, optimise and improve it, or even just for statistical purposes;

   3. solve operational or technical problems (e.g. anomalies in page loading);

   4. perform monitoring activities to repel and/or prevent cyber-attacks and/or fraud.

2. If W3M notices any violation by You with respect to the provisions of the ToS, The Association may, at its own unquestionable judgement and without this entailing any obligation to pay compensation to You, take any action against You, including actions to claim compensation for damages.

3. Notwithstanding anything contained in the Agreement, We reserve the right, without notice and in our sole discretion, to terminate Your right to access or use the Site at any time and for any or no reason, and You acknowledge and agree that We will have no liability or obligation to You in such event.

4. MEMBERSHIP

1. The Visitor may apply to The Association via the dedicated section available on the Site. The process requires sending an application form and accepting certain contractual terms, including but not limited to the Article of Association and Organisational Regulations. The Association's Governance Committee will evaluate your application and communicate its decision. Additional or different specifications may be available on the Site and will form part of the Agreement at the date of your application.

2. By becoming a member of The Association, the member has to grant The Association the right to use its name and trademark for functional communication purposes only. This includes, but it is not limited to, affixing member’s logo to The Association’s Site; displaying member’s logo on event posters, brochures, and related promotional materials; showing member’s name and logo in press announcements related to The Association’s activities and events. Any other use of member’s name or trademark will require your express consent as a member.

5. WARRANTY EXCLUSIONS AND NO ASSISTANCE

1. The Site is provided on an “AS IS” and “AS AVAILABLE” basis and The Association makes no warranties, express or implied (including the implied warranties of non-infringement, merchantability and fitness for a particular purpose), and may be temporarily inaccessible or otherwise defective or delayed.

2. W3M will make every reasonable effort to ensure that You has continuous and uninterrupted access to the Site but will not, under any circumstances, be liable if one or more of content made available to You(even free of charge) is temporarily or permanently inaccessible.

3. In particular, The Association makes no warranty as to:

   1. the suitability of the Site with respect to the needs of Visitor;

   2. the availability of, and the absence of errors in, the Site;

   3. the quality of the Site;

   4. the correction of any technical errors of the Site.

4. Any material accessed, downloaded, or otherwise obtained through the use of the Site is done at the Visitor’s own discretion and risk and the Visitor will be solely responsible for any damage to the Visitor’s computer system or loss of data that results from the download of any such material. No advice or information, whether oral or written, obtained by the Visitor from The Association or through or from the Site will create any warranty not expressly stated in the Agreement.

5. Except as otherwise expressly provided in the Agreement, The Association does not represent or warrant that

   1. the Site will meet the Visitor’s requirements;

   2. the Site will be uninterrupted, timely, secure, or error-free;

   3. the results that may be obtained from the use of the Site will be accurate or reliable;

   4. the quality of any products, services, information, or other material purchased or obtained by the Visitor through the Site will meet the Visitor’s expectations;

   5. any errors in the Site will be corrected.

6. The Association will not be liable for any errors, inaccuracies, omissions and, more generally, for damages caused, directly or indirectly, by decisions taken or initiatives undertaken by the Visitor or by Third Parties on the basis of (and/or as a result of) the contents of the Site.

7. The Association does not guarantee the provision of technical assistance in relation to the Site.

8. Nothing in this Agreement shall limit or exclude the liability of The Association, its employees, agents or third-party content providers for death or personal injury caused by fraud or fraudulent misrepresentation or any other matter in respect of which it would be unlawful to exclude or restrict liability.

6. LIMITATION OF LIABILITY

1. If The Association modifies, updates, suspends, limits or interrupts the operation of the Site, no liability will arise in Your favour.

2. The Association is not liable for errors, omissions, interruptions, deletions, defects, operative or transmission delays, malfunction of the communication network, theft, destruction, unauthorised access or alteration of any content concerning Site.

3. The Association is not liable for any possible technical issues or problems concerning telephone networks or lines, online elaboration systems, servers and providers, IT appliances, software, errors in emails or software that negatively affect Site’s functionalities.

7. CONTRACT CHANGES

1. The Association reserves the right at any time to modify this ToS and any legal document present on the Site (including, by way of example, the Privacy Policy, the Cookie Policy, etc.), or to add at any time new or additional terms or conditions on Your use of the Site. Such modifications and additional terms and conditions will be effective immediately and incorporated into this Agreement. Your continued use of the Site will be deemed acceptance thereof.

8. INTELLECTUAL PROPERTY

1. Unless otherwise indicated on the Site with specific reference to certain items on the Site, The Association is the exclusive owner of all Intellectual Property Rights in the Site and the content on the Site.

2. All The Association trademarks, services marks, trade names, logos, domain names, and any other features of The Association brand are the sole property of The Association or its licensors. The ToS does not grant You any rights to use any of such features whether for commercial or non-commercial use.

3. The provision of the Site by The Association will not be considered as an assignment or licensing by The Association in favour of You of any Intellectual Property Right on the Site or on the contents present on the Site.

9. CONTACTS

1. For any information regarding the use of the Site and these ToS, You may contact The Association at the contact details contained in the Site.

2. The Association will process the data transmitted by You when contacting The Association for the sole purpose of executing the contract governed by the ToS, and therefore on the basis of assumptions of a contractual nature, in accordance with the provisions of the Privacy Policy.

10. MISCELLANEOUS

1. If any term, Clause or provision of the Agreement is held invalid or unenforceable, then that term, Clause or provision will be severable from the Agreement and will not affect the validity or enforceability of any remaining part of that term, Clause or provision, or any other term, Clause or provision of the Agreement.

2. The ToS regulates the relationship between The Association and You and does not create rights in favour of, nor obligations against, Third Parties.

3. Any tolerance by The Association of the conduct of You in violation of the provisions contained in the ToS does not constitute a waiver of the rights arising from the provisions violated, nor the right to require the exact fulfilment of all terms and conditions therein.

4. The Association does not provide content to individuals who do not have the legal capacity to act to accept the ToS as set out in their home country’s legislation.

5. The rights and remedies included herein are not exclusive, but are in addition to any other rights and remedies available under applicable law.

6. Any limitation or exclusion of liability provided for in favour of W3M in the ToS will apply to the fullest extent permitted by law.

11. PROCESSING OF PERSONAL DATA

1. The Association will process data of Users in accordance with the Privacy Policy.

12. APPLICABLE LAW AND JURISDICTION

1. You expressly agree that the ToS is exclusively governed by Swiss Law. Any dispute concerning the interpretation, execution, termination or validity of the ToS will be submitted to the exclusive jurisdiction of the Zug Courts.

2. Should the provisions of this Clause be inapplicable according to the mandatory rules of the country of Yours, then the applicable law and the competent Court will be determined according to the laws of such Country.

Token Distribution

Glossary of Cap Table Terms:

• Sales: pre-TGE private sales to raise funds and gain early support.

• Founders and Team: core contributors of the project.

• Industry Partners: strategic partners who provide crucial support.

• Community Airdrop: Free distribution to promote the project.

• Marketing and Growth: marketing efforts and ecosystem growth.

• Treasury short-term: short term growth and operational needs including listing liquidity and market makers.

• Treasury long-term: long term operational needs for expansion and long-term sustainability.

Notes (*)

*) Community Airdrop: We have allocated 160 million $RECORD tokens (16% of the total supply) on Base for community incentives and distribution as a token of our appreciation. These tokens will be distributed across multiple seasons, each carefully designed to enhance different aspects of our ecosystem. To date, only a portion of these tokens has been distributed across completed seasons, such as the pre-TGE season (SZN1) and the LBP season, with 88 million $RECORD tokens still remaining for distribution. The vesting terms we’ve indicated are projected averages and may vary with each season. We are committed to transparency and will keep our community informed as we move through these distribution phases.

**) Treasuries: We have subdivided the treasuries into Marketing and Growth, Short-Term, and Long-Term categories to provide the community with a clear projection of their intended use, each aligned with its specific purpose. It’s important to note that these treasuries are 100% available at TGE, as there are no locks or vesting periods applied to them (please refer to the following section for detailed treasury management procedures). Additionally, these treasury categories do not form part of the circulating supply.

Treasury Management

• The Association behind the RECORD, is a non-profit organisation established under Articles 60 to 79 of the Swiss Civil Code.

• It operates as an independent legal entity with legal capacity under Swiss law.

• It is incorporated in Switzerland and follows strict compliance procedures.

• The Association underwent a full regulatory assessment with the Swiss Financial Regulator (FINMA) to obtain a token classification as a utility.

• It has a structured and rigorous governance model to ensure that management and team members fulfil their purpose of leveraging open-source distributed ledger software and protocols to directly or indirectly promote the growth, development, and adoption of such technologies within the music industry, the surrounding community, and the entire ecosystem.

• To ensure the safety of token holders and align with the Association's mission, the treasuries are managed through a multi-signature (multi-sig) account controlled by the Association Governance.

The record.nexus, webmusic.org, musicprotocol.finance, musicprotocol.io website (the “Site”) uses Cookies for the following purposes: to enable and improve the functioning of the Site, to perform computer authentication, to monitor sessions, to store information on specific configurations concerning Visitors accessing the server.

This document provides detailed information on the use of Cookies and similar technologies, how they are used on the Site and how to manage them.

Visitors of the Site (the “Visitor”) have the possibility to configure their browser (the "Cookie Banner") in order to be notified of the receipt of Cookies and to decide whether to accept, reject or manually manage their preferences regarding the use of Cookies. The acceptance of Cookies by the browser can be disabled by changing the aforementioned settings.

For further information on the processing of personal data by the Data Controller click here.

1. Definition

1. Cookies are short text fragments (letters and/or numbers) that allow the web server to store information on the browser to be reused during the same visit to the Site (session Cookies) or later, even after a few days (persistent Cookies). Cookies are stored, according to the Visitor’s preferences, by the individual browser on the specific device used (computer, tablet, smartphone).

2. Types of Cookies

1. There are different categories of Cookies, with different characteristics and uses:

   1. Technical Cookies: these are Cookies that are essential for the proper functioning of the Site and are used for the sole purpose of carrying out the transmission of a communication over an electronic communication network, or to the extent strictly necessary for the provider of an information society service explicitly requested by the Visito to provide such a service;

   2. Analytical Cookies: these are Cookies used to collect and analyse Site traffic and usage in an anonymous way. These Cookies do not identify the Visitor, but they allow us, for example, to detect whether the same Visitor returns to the Site at different times. They also allow us to monitor the system and improve its performance and usability. These Cookies can be deactivated without any loss of functionality.

   3. Profiling Cookies: these are persistent Cookies used to identify (anonymously or otherwise) the Visitor’s preferences and improve the Visitor’s browsing experience; they are often used to create profiles of the user and are used to send advertisements in line with the preferences expressed by the Visitor while browsing the web.

   4. Third-party Cookies (analytical and/or profiling): these are Cookies generated by organisations that are not part of the Sitw, but which are integrated into parts of the Site’s pages. Examples include Google widgets (e.g. Google Maps) or social plug-ins (Facebook, Twitter, LinkedIn, etc.).

2. The handling of information collected by “third parties” is governed by their policies, which You should refer to, and which for Your convenience are indicated in the links below.

3. Types of Cookies Used

1. The Site uses the following Cookies:

ATTENTION: If You navigate on the Site from a Google Chrome browser and/or while logged into your Google account, further Google Cookies may be installed without your consent and without the possibility for us to prevent this. Similarly, this could happen by using browsers or by logging into accounts provided by other companies. In all these cases, the Processing of Personal Data is not carried out by us and we do not assume the status of Data Controller for such Processing. We do not have any control over such Cookies, nor shall any liability arising out of the installation of such Cookies on your devices be imputed to us.

4. MANAGEMENT

1. The main Cookie management tool we recommend is the Cookie banner we provide, which allows for Cookie management in compliance with the world's most stringent privacy and data protection legislation, such as the GDPR (including the guidelines of the French authority CNIL) and the California Consumer Privacy Act (CCPA). Through this tool you will be able to:

   1. accept the full installation of all Cookies;

   2. accept only those Cookies that are necessary for the operation of the Site, rejecting all others;

   3. or manage your preferences manually by grouping Cookies by purpose of use.

2. The Visitor can decide whether or not to accept Cookies by using the settings of his or her browser. In this case, the setting can be defined specifically for different websites and web applications. Furthermore, the best browsers allow different settings to be defined for different types of cookies:
3. The usability of the contents is also possible by completely disabling cookies, with the exception of 'session' cookies in the event that the Visitor wishes to authenticate himself, and disabling 'third-party' cookies does not affect the navigability of the Site in any way.

4. If you do not install the Cookies that are strictly necessary for the operation of the Site, you will not be able to proceed to browse the Site. These Cookies alone are by default ready to be installed on the device you are browsing from and do not, by law, require your express consent for installation.

5. We cannot guarantee the perfect functioning of the aforementioned tools, but undertakes to evaluate from time to time the most suitable tools for the purposes of compliance with the GDPR and applicable privacy and data protection regulations, possibly even replacing the tools currently in use with others that are more suitable or better functioning.

5. CHANGE YOUR PREFERENCES

1. You can change your preferences at any time by accessing our banner from here.

Dear User,

This policy informs you of the Personal Data Processing activities we perform as a result of providing the Services (see in the Glossary what we include in the definition of "Services").

As our entity provides the Services, and establishes purposes and means of the Processing of Personal Data relating to You, it qualifies as “Data Controller” under the GDPR.

If You, the User, are the individual whose Personal Data are processed by us, you are referred to as a "Data Subject," and you have the right to receive the following information about who we are, what Personal Data we process, why, how and for how long we process it, and what obligations and rights you have regarding it. If the actual User of the Services is some type of entity (e.g., company, association, etc.), the Data Subjects are the natural persons who materially use the Service on behalf of the entity (e.g., the entity's legal representative and/or its members and/or workers). In the latter case, information strictly related to the entity (e.g., VAT number) is not considered Personal Data, while other information referring to individuals (e.g., identification data of the legal representative) is Personal Data.

Depending on the Services that You use, we may need to process certain Personal Data. In some cases, specified below, we may have an interest in processing Personal Data for purposes other than the provision of the Services: in these cases, we will process only where there is an appropriate legal basis and, where required by law, on the basis of the Consent of the Data Subject.

The following grid and clauses explain how the Company, as Data Controller, will process Your Data.

This Privacy Policy is in force from the date indicated in the header. We reserve the right to modify its content, in part or in full. Such updates will be in force from the date of their publication. You are therefore invited to visit this section regularly.

We do not knowingly collect personal information about natural persons who, according to their national law, lack legal capacity to act for the purpose of entering into contracts, except for requests relating to minors made by persons exercising parental authority or custody over the minors concerned. If information on such persons is recorded, We will delete it in a timely manner at the request of the Data Subject or the person exercising parental authority over him or her.

GLOSSARY

“Applicable Law”: means any provision, of any source, forming part of the Swiss Law or European Union applicable to the Site and to the legal relationships arising as a result of the interactions between the Company and the Users.

“Authorised Agent”: means the natural person, under the direct authority of the Data Controller, who receives instructions from the Data Controller on the Processing of Personal Data, pursuant to and in accordance with Article 29 of the GDPR.

“Authority”: means a body or organisation, public or private, with administrative, judicial, police, disciplinary or supervisory powers.

“Browsing Data”: means the data that the computer systems and software procedures used to operate the Site acquire, during their normal operation, and whose transmission is implicit in the use of Internet communication protocols. This information is not collected to be associated with identified Data Subjects, but given their very nature, this information could, through processing and association with data by third parties, allow users to be identified. This category of data includes IP addresses or domain names of the computers used by users who connect to the Site, URI (Uniform Resource Identifier) addresses of the resources requested, the time of the request, the method used to submit the request to the server, the size of the file obtained in response, the numerical code indicating the status of the response given by the server (successful, error, etc..) and other parameters relating to the operating system and computer environment of the user. This data is used for the sole purpose of obtaining anonymous statistical information on the use of the Site and to check its correct functioning and is deleted immediately after processing.

“Committee” o “EDPB”: means the European Data Protection Board, established by Article 68 of the GDPR and governed by Articles 68 to 76 of the GDPR, which replaces WP29 as of 25/5/2018.

“Common Data”: means the Personal Data concerning Your personal details, including, but not limited to, Your first and last name, e-mail address, telephone number, tax code, VAT number, as Well as any other data You may provide us with, for example through the forms or contact details of our organisation available on the Site.

“Company”: Web3 Music Verein (Web3 Music Association), a company duly existing and incorporated under the laws of Switzerland, with registered office in Zug, Baarerstrasse n. 141 registered at the Registrar of Companies of Zug with Number CHE-184.859.454.

“Consent of the Data Subject”: means “any freely given, specific, informed and unambiguous indication of the Data Subject’s wishes by which he or she, by a statement or by a clear affirmative action, signifies agreement to the processing of personal data relating to him or her” (art. 4, paragraph 11, GDPR).

“Cookie”: means short fragments of text (letters and/or numbers) that allow the Web server to store information on the browser to be reused during the same visit to the Site (session cookies) or afterward, even after days (persistent cookies). Cookies are stored, according to the user’s preferences, by the individual browser on the specific device used (computer, tablet, smartphone). The following categories are considered:

• Technical cookies: these cookies are essential for the correct functioning of the Site and are used for the sole purpose of transmitting a communication over an electronic communication network, or to the extent strictly necessary for the provider of an information society service explicitly requested by the subscriber or User to provide such service.

• Analytical cookies: these cookies are used to anonymously collect and analyse the Site’s traffic and usage. These cookies, while not identifying the user, allow, for example, to detect if the same user logs in again at different times. They also make it possible to monitor the system and improve its performance and usability. The deactivation of such cookies can be performed without any loss of functionality.

• Profiling cookies: these cookies are persistent ones used to (anonymously or otherwise) identify Your preferences and improve Your browsing experience.

• Third party cookies (analytical and/or profiling): these cookies are generated by organisations not part of the Site, but integrated into parts of the Site page. For example, Google widgets (e.g. Google Maps) or social plugins (Facebook, Twitter, LinkedIn, Google+, etc.).

“Data”: one or more of the categories indicated as Personal Data.

“Data Controller”: means "the natural or legal person, public authority, service or other body which alone or jointly with others determines the purposes and means of the processing of personal data", as defined in Article 4, subsection 1, no. 7, of the GDPR.

“Data Processor”: means "a natural or legal person, public authority, agency or other body which processes personal data on behalf of the controller", as defined in Article 4, subsection 1(8) of the GDPR.

“Data Subject”: “an "identified or identifiable natural person", as defined in Article 4, subsection 1, no. 1, of the EU Regulation 2016/679 (so-called "GDPR").

“Disclosure”: the making of personal data to unspecified persons, in any form whatsoever, including by making them available or consulting them.

“GDPR”: means the EU Regulation 2016/679 on the protection of individuals with regard to the processing of personal data and on the free movement of such data and repealing Directive 95/46/EC (General Data Protection Regulation).

“Limitation”: means the marking of personal data stored with the aim of limiting their processing in the future, as defined in Article 4(1)(3) of the GDPR.

“Privacy Law”: the EU Regulation 2016/679 ("GDPR"), the UK GDPR, and Federal Act on Data Protection (FADP) of Switzerland, as well as the measures adopted by the Data Protection Authority, guidelines, and other applicable sources.

“Privacy Policy”: means this policy on the Processing of Personal Data.

“Profiling”: means "any form of automated processing of personal data consisting of the use of such personal data to evaluate certain personal aspects relating to a natural person, in particular to analyse or predict aspects of that natural person's professional performance, economic situation, health, personal preferences, interests, reliability, behaviour, location or movements", as defined in Article 4, subsection 1(4) of the GDPR.

“Personal Data”: means "any information relating to an identified or identifiable natural person (‘data subject’); an identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person", as defined in Article 4, subsection 1, no. 1, of the GDPR).

“Processing”: means "any operation or set of operations which is performed upon personal data or sets of personal data, whether or not by automated means, such as collection, recording, organisation, structuring, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transmission, dissemination or otherwise making available, alignment or combination, restriction, erasure or destruction", as defined by Art. 4, subsection 1, no. 2, of the GDPR.

“Publication”: means the action by which the Data Controller communicates information on the Site, without the implementation of procedures requiring the User to view it.

“Recipient“: means “a natural or legal person, public authority, agency or another body, to which the personal data are disclosed, whether a third party or not”, as defined in Article 4, sub-paragraph 1, no. 9, of the GDPR.

“Services”: means the the services offered by the Company through the Site, including the provision of the Site itself.

“Site”: means the web pages displayed through www.web3music.org, including subdomains.

“Supervisory Authority”: or “Data Protection Authority”, means the independent public authority established by a Member state of the European Union, Switzerland, UK or another country, in charge of supervising the application of the Privacy Law in its country of establishment.

“Third Party”: means "the natural or legal person, public authority, service or other body other than the Data Subject, the Data Controller, the Data Processor and the persons authorised to process personal data under the direct authority of the Data Controller or Data Processor", as defined in Article 4, subsection 1, no. 10, of the GDPR.

“User”: means any individual, or legal entity using any of the Services.