Zimrii Music’s Mo Jalloh: 3 Ways Artist Tokens to Drive Music Economy
Napster and similar peer-to-peer music sharing sites that sprung up in the late 1990s resulted in a surge in music piracy as music fans copied and shared music for free. Enter blockchain technology, the new peer-to-peer surge.
This is a guest post from Mo Jalloh of Zimrii Music.
A New Music Economy
As the P2P revolution comes this time around, there is promise that blockchain 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.
It’s all about tokenization, my friends.
What Is an Artist Token?
A token or cryptocurrency is a mechanism whereby an asset is created on a 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 or musician to hold an asset in that entity and share in the revenue flows of said artists.
We believe this presents a fantastic mechanism to drive a new form of creative innovation and will do so 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 intellectual property into a 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 their revenue flows. The more people who consume the artist’s creations, the higher the value of the given token.
2. Artists and consumers to earn money from token economy
Artists can raise money through a token launch now.
These token launches 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, artists and other entities in the creative industries can generate new forms of experiences around creative content.
These are exciting times, indeed. Artist tokens promise a novel era of value creation and growing recognition in the music industry to enable more artists to take control of their creative futures. We can’t wait to see what comes next.
What’s your take? Do you think the new tokenized artist economy can really take off in the years ahead? Sound off in the comments below.
Images via edmchicago, Pinterest
The opinions expressed herein represent the personal views of the guest author. This article is not investment advice.