Version 1.0 Entity: CrownThrive LLC — Virality Music Division System Class: Cultural Capital Valuation + Treasury Accounting Framework Status: Internal Strategic Framework (Pre-CHLOM Integration)
Executive Overview
The Catalog Valuation & Treasury Ledger Framework defines how Virality Music converts creative works into measurable capital units within the CrownThrive ecosystem. It operationalizes the Catalog-as-Capital™ doctrine by standardizing valuation logic, treasury recording, and artist account management across all catalog assets.
This framework ensures that every Virality Music song, album, or multimedia derivative has a traceable value, an auditable record, and a future-convertible financial identity. The end goal is a fully transparent, decentralized ledger where music rights and royalties circulate like programmable capital.
1. Framework Architecture
The valuation and ledger system runs on three synchronized layers:
- Vault Layer (Asset Custody) All creative works and IP documentation are stored, tagged, and timestamped in the CrownVault™. Each entry generates a Vault Identifier (VID), linking metadata, rights splits, and financial data.
- Valuation Layer (Capital Indexing) Catalogs are analyzed for market yield, performance metrics, and cultural value. Each receives a Catalog Asset Score (CAS) and a Net Asset Value (NAV) in USD.
- Treasury Ledger Layer (Capital Accounting) The NAV and royalty flows are recorded in the Virality Treasury Ledger, a double-entry, blockchain-ready ledger forming the foundation of the CrownThrive Treasury System.
2. Catalog Valuation Model
Virality Music applies a multi-factor weighted model to determine catalog value. Each factor represents a dimension of capital performance.
2.1 Valuation Formula
NAV = (R × W₁) + (S × W₂) + (C × W₃) + (G × W₄) + (H × W₅)
Where:
| Symbol | Factor | Definition | Data Source | Weight |
| R | Royalty Flow Rate | Avg. annual royalties (3-year mean). | CrownPulse | 35% |
| S | Streaming Index | Cumulative DSP streams, adjusted for genre volatility. | DSP APIs | 20% |
| C | Sync & Commercial Value | Past and projected sync income. | AdLuxe / FilmHub | 15% |
| G | Growth Velocity | Rate of catalog appreciation YoY. | CrownLytics | 15% |
| H | Heritage Score | Cultural or historical significance rating. | Advisory Council | 15% |
This formula yields a Net Asset Value (NAV) used in Treasury accounting and equity assignment.
3. Catalog Asset Score (CAS)
Each catalog entry also receives a Catalog Asset Score, ranking its strategic value to the Virality Treasury.
| Score Range | Designation | Meaning |
| 90–100 | Treasury-Grade | High yield, heritage, or sync-viable catalog. |
| 75–89 | Growth-Grade | Active income generators with rising performance. |
| 60–74 | Development-Grade | Moderate yield; strategic or niche market potential. |
| <60 | Dormant/Experimental | Low activity; preserved for heritage or future reissue. |
These classifications determine how catalog assets are grouped into Treasury tiers.
4. Treasury Ledger Structure
The Virality Treasury Ledger (VTL) operates as a multi-book accounting system designed for real-time tracking of catalog capital.
4.1 Ledger Composition
- Main Ledger: Records NAV, CAS, and capital adjustments.
- Artist Sub-Ledger: Tracks individual equity shares, royalty inflows, and catalog NAV contribution.
- Vault Reconciliation Ledger: Syncs digital custody records (VIDs) with financial records.
- Cultural Heritage Ledger: Tracks non-monetary cultural assets and preservation-grade works.
4.2 Ledger Entry Example (Simplified)
| Entry ID | VID | Asset | Type | NAV (USD) | CAS | Artist % | Treasury % | Status |
| VTL-0001 | VID-0012 | Soul Renaissance EP | Master | 82,400 | 91 | 70% | 30% | Active |
| VTL-0002 | VID-0047 | Midnight Frequencies | Publishing | 24,300 | 78 | 80% | 20% | Active |
| VTL-0003 | VID-0055 | Live at MM Suites | Live Rec. | 9,800 | 63 | 60% | 40% | Legacy |
Each line item ties directly to accounting, royalty disbursement, and treasury valuation.
5. Artist Treasury Accounts
Every artist under Virality Music receives a Treasury Account, which functions like a capital wallet.
Account Components:
- Catalog NAV Total: The combined value of all vaulted works.
- Royalty Balance: Real-time royalties awaiting distribution.
- Equity Position: Artist’s percentage ownership in Treasury NAV.
- Performance Yield: Compound return from sync, streams, and co-ventures.
The Treasury Account integrates with CrownPulse™ (data feed) and CrownLytics™ (analytics dashboard).
Example Snapshot – Artist Treasury Account
Artist: Nova Lianne Catalog NAV: $412,000 Quarterly Yield: $18,450 Equity Weight: 0.84% of Treasury NAV Classification: Growth-Grade Heritage Score: 79 Royalty Flow: 3.9% monthly increase (Q2-Q3)
6. Treasury Tiers
Virality Treasury assets are grouped by performance and function:
| Tier | Name | Description | Primary Use |
| I | Revenue-Active | Streaming, publishing, sync, and ad yield | Treasury Yield Engine |
| II | Developmental | New or experimental catalogs | Growth Acceleration Fund |
| III | Heritage | Legacy works and preservation archives | Cultural Treasury Fund |
| IV | Partner Pool | Catalogs shared with equity partners | Joint Venture Ledger |
Each tier maintains its own sub-ledger and contribution ratio to total Treasury NAV.
7. Treasury Accounting Logic
- Catalog NAV entries feed into the Main Ledger.
- Royalty receipts flow into Artist Sub-Ledgers.
- Quarterly yield is distributed 80/20 between Artists and Treasury Pool (adjustable).
- Valuation updates occur every fiscal quarter.
- Appreciation gains are capitalized into the Treasury NAV.
Accounting events are timestamped, hashed, and mirrored for CHLOM blockchain migration.
8. Treasury Analytics Integration
8.1 CrownLytics Dashboards
- Real-time NAV fluctuation monitoring.
- Streaming-to-capital performance ratio.
- Cultural asset appreciation index.
8.2 CrownPulse Royalty Feed
- Automated DSP reporting ingestion.
- Micro-royalty transaction mapping.
- Predictive yield analytics (AI-based).
9. Compliance and Audit Protocol
- All catalog valuations undergo bi-annual audits by the CrownThrive Treasury Council.
- Independent verification via third-party PRO and DSP data.
- Future on-chain proof integration under CHLOM ADE (Attribution & Distribution Engine).
- Audit results locked into Treasury Ledger history, immutable post-approval.
10. Interoperability with CHLOM Protocol
Phase 1 – Mapping Layer
Each catalog entry receives a CHLOM-Ready Metadata Packet:
{VID, NAV, CAS, Rights Split, Ownership %}
Phase 2 – Attribution Integration
Royalty flows from DSPs connect through CHLOM ADE, creating live attribution proofs.
Phase 3 – Decentralized Treasury Migration
Treasury Ledger mirrors to CHLOM blockchain; each asset becomes token-ready, with automatic compliance and royalty enforcement.
11. Economic Function
- Yield Engine: Converts royalties into recurring capital yield.
- Cultural Treasury Fund: Protects non-commercial works of heritage significance.
- Liquidity Bridge: Allows catalog-backed credit or fractional sale.
- Equity Compounding: NAV appreciation feeds back into CrownThrive’s ecosystem valuation.
Virality Music’s Treasury thus functions as both a cultural bank and financial engine.
12. Future-Proofing the Treasury
By Year 5, the Virality Treasury will adopt:
- Smart contract accounting (CHLOM integration).
- Treasury tokenization for verified catalog shares.
- Artist voting weight proportional to NAV stake.
- Interoperable DAO interface for governance.
Closing Declaration
The Catalog Valuation & Treasury Ledger Framework completes the operational cycle of Catalog-as-Capital™. It transforms songs into financial instruments, artists into shareholders, and cultural expression into generational wealth.
Virality Music is not managing music—it is managing value. Every beat becomes a balance sheet entry. Every legacy becomes liquidity.