warulor540: MP3 FINANCE.

Introduction

This paper explores the impact of blockchain on the music industry with a focus on the implications technology can have for artists. By investigating the industry’s supply chain, we argue that the on-demand streaming platforms (e.g. Spotify and Apple Music) have allowed consumers to easily access music products but have introduced a level of intermediation between artists and customers leading to inefficiency of the royalty payments systems. The goal of this research is to identify blockchain applications that would enable the disintermediation of the industry, allowing artists to create and capture more value from their own products. This paper discusses some applications and concepts related to blockchain, including smart contracts, record keeping, revenue management, and metadata analysis

At this point, we all know that blockchain will eventually work its way into and revolutionize every facet of industry. If you haven’t realized this by now, you will over the course of the next few years as you witness a complete paradigm shift. For those of you that do know, NOW is our time to start disrupting industry. I’ve decided to start with what I know best: the music business.

Clocking in at ~$50b a year, the global music industry continues to rake in billions, with a disturbingly small percentage going to the artists themselves. Between the well-known exploitation of artists by record companies (just ask Kanye) and the COVID pandemic decimating the live music industry (which accounts for ~75% of artist revenue), I think it’s safe to say that the system is breaking down — it’s high time we came up with something better.

What price do artists pay to be marketed and promoted worldwide? They typically surrender the rights to their music in exchange for record labels to market them. By making investment into an artist open and accessible to all, investors from across the globe will suddenly find an interest in promoting the artists they invest in — opening up massive opportunity for independent marketers and influencers. This puts incredible promotion potential into the hands of the artist, while keeping the rights to their music out of the hands of the record labels.

BME Group blockchainmusicentertainment

BME Group is a collective of developers from around the world contributing to the decentralization of the entertainment industry & empowering those who create.

What’s In It For The Artist?

Artists have the power to navigate their career with little or no intermediaries. While operating on the blockchain, they can choose to pursue a music career without record labels, banks, lawyers, etc.

Using blockchain technology, artists benefit in record-keeping. Data and transactions are validated and confirmed by multiple sources across the network, timestamped, and secured using cryptography. The blockchain is immutable.

Artists receive their revenue in real-time. The transactions from fan to artist occur without any middlemen.

Artist Creates Profile & Deploys a Personalized Oracle

With a customized profile in the MP3 catalogue, artists can deploy their own personalized bonding curve curation markets, and “tokenize” themselves. A smart contract that is able to generate secondary tokens, or “shares”, based on a floating price point. Shares are created by staking value (MP3) to the contract and can be redeemed or “unbonded” at any time for the value of where the pricing function is at; thus providing the ability to create markets without the logistical hangups of exchanges, liquidity, market makers, or orderbooks, as this essentially facilitates all of those functions through a smart contract interface. A widget that may be embedded on their website will provide the DEX for their “token”.

1. Initial Artist Offering (IAO)

Artist can be listed and go “public” on the MP3 DEX, available for fans & speculators to invest in.

2. International Exposure

Independent marketers & influencers profit from the promotion of the artists they invest in; Artists profit by unbonding their initial equity ‘shares’ at a higher price point on the bonding curve. Everybody wins.

Introducing: The Initial Artist Offering (IAO)

Imagine a place where the average person could invest in an artist as easily and inthe same type of way they would a crypto project they believe in. We have the tech, now it is time to implement it —and it begins with tokenizing the artist.

TOKENIZING ARTISTS WITH A BONDING CURVE

We will provide a bonding curve curation market for access to artists and artist services through algorithmic token generation — thus providing the ability to create markets without the logistical hangups of exchanges, liquidity, market makers, or orderbooks, as this essentially facilitates all of those functions through a smart contract interface. A smart contract that is able to generate secondary tokens, or “dots”, based on a floating price point. Dots are created by staking value (mp3) to the contract and can be redeemed or “unbonded” at any time for the value of where the pricing function is at. The artist can also provide the option for an Oracle to offer subscription services using the same bonding curve pricing model and dots as payment, as well as embed a DEX widget directly onto their website.

DFO: Decentralized Flexible Organization

mp3 will begin it’s journey accompanied & built in a DFO — DFOs are resilient on-chain companies as a base layer for building applications on top of Ethereum. By employing a microservices-driven core, it ensures flexibility; by using voting tokens to govern, it ensures independence.

We will build the next gen music industry transparently, with you, together.