3 ways in which Artist Tokens will drive the new Music Economy
Napster and similar peer to peer music sharing sites which sprung up in the late 90’s, resulted in a surge in music piracy as music fans copied and shared music for free
Enter Blockchain Technology. A similar peer to peer type of technology. This time there is promise that this technology will drastically alter the music landscape for the benefit of both musicians and fans
Whereas digital and illegal downloading once wreaked havoc on the industry at large (from music creators to record labels, none were spared), a BlockChain-based model for music pledges to boost the fortunes of artists. Industry middlemen and gatekeepers, however, could be in danger
What is an Artist Token?
A token or crypto currency is a mechanism whereby an asset is created on the Blockchain. In terms of music, the asset can be in the form of digital music or other forms of creative output. This opens up the opportunity for fans of a band of musicians to hold an asset in that entity and share in the revenue flows of that artist
We believe this presents a fantastic mechanism to drive a new form of music innovation and it will do this in 3 key areas:
1. Creation of a Token economy or ecosystem
There is a now a mechanism whereby the token economy is driven by the value of an artist’s work. When an artist creates a token, they’re turning their IP into an financial asset, so an artist’s token reflects the value of their output.
If you buy into an artist’s token, you are owning a share of the artist’s creations and its revenue flows. The more people who consume the artist’s creation, the higher the value of the token.
2. Artists and consumers to earn money from selling and buying tokens.
Artists can raise money through a token launch. These tokens are designed to dispense royalty flows. If someone pays for an artist’s content, then all of that artist’s token-holders will receive a pro rata share of that payment.
3. Generate new forms of engagement experiences
Tokens can also be exchanged for perks, like special access at a concert or early access to a new film release. By issuing tokens, artist, and other entities in the creative industries can generate new forms of experiences around creative content
At Zimrii Music, we have been working hard to make the above a reality in our music platform. We believe it promises a new area of value creation and recognition
Also published on Medium.