Capital Management and NFT Repayment Tracking

Investors assess the opportunities within the Investment Pools and provide capital with the goal of earning returns. Each investor is responsible for managing their decisions and ensuring appropriate diversification. However, the system allows investors to act similarly to fund managers, enabling them to manage third-party capital. Music Protocol will also offer a fund that operates under a tailored model to ensure both diversification and liquidity, leveraging the Liquid $RECORD model (see the section on $nRECORD).

To track the contributions made by different participants, investors are issued an NFT upon supplying capital. This NFT records the amount contributed and monitors the proportion that has been redeemed. At any point, investors or participants in senior positions can use their NFTs to redeem their specific portion of available repayments from the pool.