In order to give benefits to both artists and their fans, the music industry is looking for more innovative ways to integrate decentralized technology into new releases.
R3HAB, an electronic dance music (EDM) artist, and anotherblock, a blockchain-based music community, jointly released a single with the idea of “democratizing music rights”. Holders of the nonfungible token (NFT) included in the drop can earn royalties depending on how popular their streaming content is.
The “Weekend on a Tuesday” single was released along with an exclusive NFT. The 0.02% share in the streaming revenue can be obtained by holding one of the 250 NFTs that are offered. Holders can estimate payouts and the overall worth using a value tracking tool provided by anotherblock’s platform.
Numerous artists have been embracing extra exclusives tied to the NFT as a tool to engage with their fan base. Extras usually include additional music, artwork, or production-related content.
According to Michel D. Traore, CEO of anotherblock, this method of utilizing NFTs enables those who generate value around songs to join in getting some of it back.
The goal behind this vision is to “democratize” the music industry by spreading the value from the primary record labels and music collections to include more of the artists themselves and the fans as well.
While it is simpler to introduce the concept with more well-known artists like Steve Aoki and R3HAB, doing so only makes it possible for emerging artists to enter the market before entering into a restrictive contract.
R3HAB has underlined the aptitude of EDM music lovers toward new “cutting-edge” technology such as NFTs in his interview. According to R3HAB, his team has been observing fans’ interest and involvement with Web3-based services.
Traore said anotherblock made a poll on its Discord community about music genres of interest for NFTs, and EDM has won the highest poll — followed by HipHop and R&B taking third place. Furthermore, according to a recent report from Ripple, 55% of significant financial institutions are interested in NFTs related to music.
Projects that do not have significant value or purpose are being eliminated as the crypto industry hones itself amid the market crash. Traore sees the relationship between the value of music rights NFTs and value in the real world as a hint for something long-lasting.
