Real World Asset Tokenisation - 6/10
The Sixth in my series of Real World Asset Tokenisation Use Cases, has a huge potential to unlock the #financialfreedom of #musicians
Tokenising Music
In the current scenario, musicians have to sign with record labels to get their tracks to their fans. These record labels handle the marketing, distribution, and selling of the tracks. For this musicians must share profit from their assets with the record labels. However, with NFTs, this could change entirely. Musicians with the help of NFTs could sell their records directly to their fans without the need for record labels. The entire ecosystem can run in a completely decentralised manner with the help of Blockchain and Cryptocurrency.
-??????Music NFTs usually contain links to images, audio, or both. These NFTs can be sold as one of one edition where one can be the sole owner.
-??????There are various potential use cases for music NFTs, such as, fans can get access to discounted concert tickets, special areas, or meet up with artists, in addition to the investment and royalty business case which it creates.
-??????MUSIC NFT MARKETPLACES – There are a lot of NFT music marketplaces wherein artists can sell their NFTs at the price they want. These marketplaces just ask for some seller price from the artists per item they sell. The artist can choose not to sell his/her music on the marketplace, though these marketplaces help artists sell their NFTs at a good price and accessible to a wide audience. The share that these marketplaces take to sell an artist’s NFTs is comparatively much lower than what the Record Labels ask for.
-??????MUSIC NFT DAOs – Decentralised Autonomous Organizations, offer grants to NFT artists. A lot of community like MusicFund distributes memberships via NFTs and holders each month donate ETH to three musicians through community funds. Apart from these funds the artists also get recognition. This motivates the artists to do a better job.
-??????ROYALTIES – A lot of platforms out there don’t do royalties. But that is now being changed. Platforms like Royal help artists mint royalty-bearing NFTs which they call Limiting Digital Assets, or LDA’s. LDAs facilitate the sharing of revenue from streaming royalties with fans who hold NFTs. Another platform Opulous lets token holders retain a share in the music copyright through an agreement established with the artist.
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-??????MUSIC NFT VIDEOS – This is a very capital-intensive venture though an exception, XYZss.xyz lets creators mint videos as NFTs and upload them on the platform. If this gets successful, NFT music videos could change the ad-based Web2 model that relies on the number of views.
-??????One NFT by the name of LostBoy combines music and art and focuses on mental health. A lot of NFTs based on art and music go hand in hand to create a wide impact.
The music NFT market was estimated at USD 1240.3 million in 2021 and is forecast to reach a market value of USD 42,830.2 million by 2032, growing at a CAGR of 27.52%.
With steep growth in Cryptocurrency users, and the Web3.0 infrastructure getting matured, the day is not far that we will see numerous independent artists taking the NFT route to create fantabulous music.
At UnicusOne we promote and help independent musicians to definitely try out tokenising their creations and attain true #independence through #decentralisation