Why Are More and More Musicians Using NFTs?
As the world of crypto and blockchain evolves, more and more industries see the value of using NFTs and web3 to replace traditional production, promotion, and sales methods. Until relatively major brands and celebrities were reluctant to get involved in the world of web3. But now with the runaway success of NFTs and new metaverse projects announced on a weekly basis it seems finally in 2022 the attitudes have started to change. For example, many creators in the music industry are making their songs and music videos available as NFTs rather than through traditional streaming services. The advantage is, by creating music NFTs, it allows creators to set their own prices for their products, ensuring that the value of their work.
Web3 takes center stage
The emergence of web3 has provided more free creative space for art creators. Art creators can create their own smart contracts, set product prices, and unlike the traditional creation mode, deliver a better way to generate profits. The founder of Zilliqa-based music NFT startup Token||Traxx, Tommy Danvers, said the current system led by tech companies meant that less than 12% of music income actually ends up with the musicians. NFTs allows you to any aspects of your creativity, whether it’s in music, obviously songs, recordings, performances, live gigs, merchandise, “which gives you those three golden rules of blockchain provenance, transparency, and security,” added Danvers. Smart contracts (self-executing contract written into software code) function to enable trustless participation in blockchain networks, by removing the need for intermediaries such as record labels.
Recently, well-known rapper Snoop Dogg publicly stated that he used smart contracts in his latest NFT version. On April 20, the US rapper released ‘Death Row Session: Vol. 2’ as a NFT including artists known for paving the way for musicians in web3: Iman Europe, MoRuf Adewunmi, Black Dave, and Heno, according to a report in Fortune. “Web3 is credible and a real thing,” MoRuf said. “This gave us a chance to live off our art and build a community that we never knew existed. That’s power.” Streaming services pay musicians less than a penny per stream, MoRuf added, which “just doesn’t make any sense, especially for the independent artist.”
The art-making community and fans get involved
NFTs are redefining the online community and the participation of art creators and fans. At Token||Traxx for example the system relies on the interaction between creators, curators (music fans) and NFT collectors. The growth of such startups and communities for musicians and their fans mean more opportunities to increase the loyalty of art creators, so that art creators can use NFT products to build a close relationship with their fans. Privileges include giveaways, concert or art exhibition tickets, exclusive merchandise, opportunities to meet musicians and for NFT token holders to join gigs in the metaverse.
People talk about community in the digital art world, as if it’s a relatively new thing, said Tommy Danvers. “But actually, in the music world, this is what we’ve always done. We’ve always built communities, when you play a gig, you playing to 20 people, three or four of them are going to come back to you after the gig and they’re gonna go, Can I get a selfie? Now, that’s your basis of true fans, actually basis of your potential NFT community. So, what NFTs brings is a much more exciting and fun and resourceful way of managing those people that the music business and the music industry has always targeted.”
In BigONE’s view, the unique exclusivity of art will always attract fans, and more and more art creators are discovering why fans are willing to participate by adopting NFTs. Musicians can use the data collected to analyze fans’ preferences to ensure a success launch for example. Clearly the advent of web3 and NFTs has the potential to revolutionize how music, and creative products are created and distributed. Musicians are attracted by the opportunity make a profit and creative freedom, while also offering their fans new opportunities to acquire and own their work. And by providing exclusive privileges to fans who hold NFT tokens, fans can get more benefits than offered through traditional fan merchandise, including exclusive metaverse shows, exhibitions, and other unique experiences. If musicians and artists continue to publish content in the form of NFTs, more users will likely enter the metaverse virtual world to enjoy the works of their favorite art creators. This may lead to broader adoption of metaverse by more consumer-led industries, thereby increasing the overall market for metaverse tokens in the future.
Listen to the full expert-led discussion on What’s the best way for creators to use NFTs? Including Christos Hatjoullis, co-founder of Shroom Studio, Outerground, Luke Stokes, MD at the Foundation for Interwallet Operability (FIO) and Tommy Danvers, co-founder of Token||Traxx about the best way for creators to smartly and safely use NFTs.