Artist Token

Personalized, Interactive Economy designed for Creators

One of the narratives that are associated with web3 music companies is the ability of substituting labels, distributors, or third parties with NFTs. The idea, while mesmerizing, is fragile in nature because as customers or users the exchange of value does not add up when the NFTs are not scarce in nature. Although the argument could be made that superfans will collect the NFTs in support of the artist, the argument weakens if the web3 musicians do not have a platform to cultivate superfans. If web3 music is to be widely adopted, there needs to be a solution.

Our Proposal

At MeMusic, we aim to solve the issues musicians and web3 face through Artist / Brand Tokens.

What does the process look like?

Artists decide to mint artist tokens that can have different utilities such as: discounted merchandise, discounted concert tickets, access to token gated content, or more. Instead of raising funds for a particular song and limiting users to collect a particular song, artists can set a size of community they wish to establish in the beginning.

Conducting the Presale

Artists can decide on a total amount of artist tokens to be minted and the amount available for presale. For example, instead of allowing all of the tokens to be minted all at once, the artist can decide to raise and mint 2,000 tokens of the 10,000. The artist could require the other tokens to be minted using the artist token or a NFT instead to increase demand.

ERC 404 Standard

These artist tokens are minted using the ERC 404 Standard, thus allowing for fractional ownerships of the artist tokens. The technical standard allows for artists to not limit the community to 10,000 members of a particular collection, but rather a fraction of an artist token.

Fundraising

All of the raises done for the artist tokens are done in $MMT. Any subsequent raises offered to the artist token holders for collections, tickets, or merchandise can be done using a select cryptocurrency of $USDC, $USDT, $BNB or such.

Liquidity & Trading

The nature of cryptocurrencies virtually allow for listings on any exchange (CEX or DEX). However, to ensure a liquid trading environment for the artist tokens, the tokens will have a required listing on MeMusic’s native DEX with locked liquidity against the $MMT tokens. Users will need $MMT to purchase the artist tokens.

How is MeMusic’s approach more sustainable than multiple NFT collections?

When the artists wish to mint different NFT collections, whether it be songs or memberships, there is a fundamental issue of neglect. What happens to a group of collectors that minted a particular song? What happens to a group of collectors that minted a certain membership?

Liquidity would definitely be fragmented amongst different collectors and artists would struggle to continue providing value. However, with the hybrid approach that the ERC404 standard provides, multiple collections can stem from the artist token while keeping liquidity concentrated as the token could expand in its utilities.

Potential Benefits

With Artist Tokens, MeMusic will allow full customization for the token issuer to decide on the benefits of holding. With various possible use cases of the artist tokens, MeMusic team will consistently develop provide web-services to help the token issuers to easily offer such benefits. (i.e. discord bot, voting dashboard, customised merchandise site)