Patron pools are entities that commission art to selected artists. The art commissioned is then monetised by the patron pools by selling them on the Public Pressure marketplace. A patron pool can be created and promoted by a main entity called a patron. Every JTP holder can become a contributor in a patron pool by contributing funds in that pool. In exchange for that contribution, they will receive a part of the profits and a role in the governance of the pool.
Patron pools are designed to create positive ecosystem effects by:
- maximising the possibilities for artists to position their work in the ecosystem, especially emerging ones;
- incentivise artists to create music/art content of the highest quality, and
- facilitate the distribution and visibility of the music/art to the general public.
This model aims to create a unique ecosystem where community owners can take the role of "Patrons" (in Italian "Mecenate", the driver of the Italian Renaissance) to drive the creation of new creative content. For example, community owners who are established brands in lifestyle industries (music, fashion, etc.), and collectors with a strong reputation.
We did not design the idea of the patron pool to create complex mechanisms and fanciful returns that artificially raise the price of the JTP token, but rather to positively impact the ecosystem in terms of real adoption.
For example, the JTP token has a marginal role in the patron pool mechanics because the patron pools are denominated in stablecoin and not in JTP. The reason is that the aim of the patron pools is to profit from music/art commissioning, thus increasing the number of drops on Public Pressure. Denominating them in JTP would mean introducing financial complexity resulting from the JTP price variability, thus reducing our original goal and the real impact of the patron pool's activity.
Any entity (called a patron) can propose opening a new patron pool. Patron pools commission music/art on the platform and create a community around their cultural values. The patron pool is the technological means for the patron to manage contractual relationships with other participants in the pool and the artists.
To run a patron pool, the patron should provide certain information about the purpose of the patron pool and its main parameters:
- A brief for the artistic works it wants to commission (musician genres, musician emergence, visual artist characteristics, etc.).
- The token accepted in the funding (e.g. USDC), the soft and hard cap, fundraising period, and termination date of the pool.
Once a patron has proposed a new patron pool, Public Pressure will review and approve/deny the application. Approved applications will generate a new patron pool contract. Over time this process may be delegated to decentralised governance.
Pool activity and governance
Every JTP holder can send funds to the pool during the fundraising period and become a contributor. Becoming a contributor implies two main benefits:
- Governance: contributors receive voting power in the patron pool decision-making process proportionally to their contribution. For example, the decentralised pool governance can vote to approve or refuse a patron’s proposal for an artist to be granted.
- Profits: contributors receive a percentage of the pool's profits proportional to their contribution.
On top of the JTP yield farming described above in the section “Fan staking”, JTP yield farming is also designed to reward the patron pools that have the highest impact on the public ecosystem. These rewards are not distributed to the patron pools equally because the decentralised governance can determine the proportional weight of each patron pool which in turn determines the amount of JTP it will receive. This allows the community to decide which patron pool receives more rewards, directing JTP rewards where they see the most benefit.
The idea behind this mechanism is to give the patron pools more resources to engage with artists they wish to collaborate with. Indeed, the patron of a patron pool can specify (without any governance oversight) a set of artists with whom they want to engage. The list should contain only artists that are verified by Public Pressure. All the JTP rewards collected by a patron pool will be automatically dispersed among the artists that the patron has listed. For example, if the patron nominated in the artists list Alice, Bob & Charlie, and the patron pool receive 300 JTP rewards, each of them would receive 100 JTP tokens.
We have four patron pools. Governance holders determine that the weighting is as follow:
- Patron pool 1 = 30%
- Patron pool 2 = 40%
- Patron pool 3 = 10%
- Patron pool 4 = 20%
The total amount of JTP staked in the Fans staking mechanism is 1000 JTP, and the value of Patron Pools reward rate (previously determined by the decentralised governance) is 10%. The total JTP reward (annually) would be 100 JTP, distributed as:
- Patron pool 1 = 30 JTP
- Patron pool 2 = 40 JTP
- Patron pool 3 = 10 JTP
- Patron pool 4 = 20 JTP
As above, these rewards are not issued to the patron pool itself, but are distributed equally amongst artists that the patron pool has nominated. If the patron pool has no nominated artists, its JTP distribution is removed (it has an implied weight of 0).