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Music NFTs: They were supposed to be more equitable for artists and their fans, yet the opposite has occurred. According to Obie Fernandez, CEO of RCRDSHP, here is the solution.
The prospect of a more democratic, decentralized future for the music industry enticed innovators, musicians, and consumers. Artists are paid fractions of a cent per stream on Web2 sites like Spotify and YouTube, with little to no control over how their music is utilized or marketed. Simultaneously, industry insiders profit from the labor of working artists, frequently with little to no transparency.
Certain music blockchain firms hope to leverage the technology to enable musicians to bypass middlemen, interact directly with fans, and earn a higher percentage of revenue earned by their music. NFTs (non-fungible tokens) have the potential to significantly increase artists' control over how their music is used, disseminated, and monetized. NFTs have the potential to transform the music industry, making it more equitable and sustainable for artists, but little has happened thus far.
Music non-profit organizations have not lived up to their promise of democratization.
Historically, music NFTs have benefited a small number of wealthy artists and investors at the expense of the bulk of music fans and creators.
The most successful music NFTs are frequently too expensive for popular music consumers, particularly those from underdeveloped countries. Last year, the relatively well-known EDM singer 3LAU sold $11.6 million worth of NFTs to initiate the music NFT boom, but the prices of the goods he sold made them unaffordable to all but the wealthiest collectors. Kings of Leon earned more than $2 million through the sale of an NFT collection comprised of items ranging in price from $95 to $250.
Clearly, we are in the early stages of NFT adoption. Whether their concerns are warranted or not, thousands of fans are repulsed by the whole notion of combining crypto and music. As a result, it's unsurprising that the vast majority of professional artists are still not profiting from NFTs. According to a new Vice investigation, the NFT economy is just as unfair as the traditional music industry and its pop stars, with a small number of artists and investors disproportionately benefiting.
While some may argue that around three-quarters of all music NFTs are sold for less than $15, unreasonably high gas rates on the Ethereum blockchain make participation difficult for smaller musicians and their followers. Despite recent advancements, it is safe to assume that the majority of successful music NFTs are purchased and sold by a small number of affluent crypto speculators with little to no ties to the music industry.
Increasing the severity of existing inequalities
According to Iris Nevins, an entrepreneur who supports black non-traditional artists, "much income inequality exists along gender, racial, and ethnic lines."
Nevins is referring to the fact that the music industry has historically been inequitable, with women and people of color being disproportionately disadvantaged in terms of chances and income. This imbalance is now being mirrored in the non-financial telecommunications business. For instance, some statistics indicate that men sell up to 77 percent of NFTs.
Even the artwork displayed in NFTs has begun to stratify according to race and gender, with certain digital assets becoming suspiciously more valuable than others. The possible issue was addressed in a recent Bloomberg piece in which the prices of CryptoPunks — one of the first and most popular NFTs – were examined. The article discovered that on average, lighter-skinned CryptoPunks sold for more than those with darker skin. Male CryptoPunks, likewise, were selling for more than female CryptoPunks.
Numerous explanations exist for these pricing differences. It is possible that consumers are purchasing CryptoPunks that most closely resemble them or are perceived to be the most valuable. However, regardless of the explanation, it is evident that the digital world, like the physical world, is not immune to racism and sexism. And as NFTs gain popularity, these discrepancies are expected to become more evident.
Taking a step further, the metaverse - a virtual world in which users may create and inhabit avatars – is already taking shape. If these same biases persist in this new environment, the ramifications could be far-reaching. Instead of leveling the playing field, the metaverse may just duplicate and intensify current disparities.
It is critical to address these concerns immediately, before they become more established. Otherwise, the metaverse risks devolving into another another environment where the rich become richer and the disadvantaged become marginalized.
In the case of music, businesses should look for ways to further erase barriers between artists and fans. This is accomplished while maintaining a focus on developing a more inclusive NFT economy that benefits all stakeholders, not just the wealthy and popular.
Music NFTs: Achieving true democratization of music. It is conceivable to create NFT marketplaces that are open and inclusive to all music listeners and composers. For instance, RCRDSHP is a new music non-fungible token marketplace that was created with the express purpose of benefiting professional musicians and their combined millions of fans outside of the cryptocurrency world.
Affordability is central to the aim of RCRDSHP. The great majority of NFT-backed digital collectibles available on the marketplace are priced between $1 and $50 and can be purchased with a credit card, making them accessible to a global audience. Even with a small collection, fans can stake their memorabilia to generate passive money for their favorite artists. Artists incentivize staking by airdropping new artifacts, music, and live event tickets to their stakeholders, so establishing positive feedback loops.
In comparison to the majority of NFT marketplaces, RCRDSHP participants have much more to do than simply gamble on the value of their holdings. Burning, massing, mixing, and staking are all features that are enjoyable and accessible to the majority of players regardless of their economic condition. Burning NFTs adds scarcity to a collection and protects the holder's earnings. Massing enables holders to combine comparable assets to produce rarer NFTs, which they can then stake to generate a higher income for their artist.
A novel design.
The RCRDSHP game model aims to align the interests of artists and players in unique ways that go beyond hype-fueled speculation and greed. The crew attributes the project's direction to their roots in rave culture and their appreciation of P.L.U.R. (Peace Love Unity Respect). RCRDSHP's emphasis is unironically on music's spiritual ability to transform us all into better humans, making it a strange and remote outlier in the world of blockchain-related enterprises.
RCRDSHP aspires to influence good changes in the music industry by developing a more inclusive and accessible NFT marketplace with an authentic heart. Our vision is a more equitable and sustainable economy for artists and their fans.
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