NFTs, the breakout tech of 2021’s crypto market, are digital certificates of ownership that are easily transferable, demonstrably unique, and, most importantly, programmable through smart contracts. NFTs will have a huge impact on every sector of the digital economy, and music is no exception.
“Decentralising technology has created an opportunity to address a major problem in the music industry and Token||Traxx is not only the solution but takes it to the next level how we create, discover, enjoy, and own music,” says Token||Traxx co-founder, the renowned producer TommyD.
Token||Traxx was founded in response to the enduring problems in the music industry today. Token||Traxx not only aims to solve the challenges faced by music creatives but use NFT technology to forge new value creation streams. It will facilitate more choice in how musicians control and profit from their intellectual property.
“Music is the soundtrack to our lives, but in modern times the creatives who produce the music we love are getting a raw deal for the value they create,” explains TommyD. “We have a broken situation when those that sell the music, the gatekeepers, are making more than those that make it. Years of optimization, driven by profit, has led to a system that doesn’t serve the artists as it should.”
TommyD points out four main areas of concern.
Firstly, a handful of labels dominate the music landscape. They are aided and abetted by the streaming services of tech giants. Soft collusion between these parties starve the revenue stream that flows back to artists.
Secondly, artist and publishing deals are outdated and one-sided. The revenue distribution between the songwriter and label is unbalanced. Master rights are surrendered, and often only the label or publisher has a contract release clause.
Thirdly, only a small minority of artists take a disproportionate amount of the market share, as opposed to a system that supports a wider range of successful artists. This status quo is perpetuated by the labels as it benefits them only having a small stable of artists to worry about.
Finally, the persistent lack of transparency with streaming rates, slow and unreliable royalty collection, and the difficulty involved in registering for credit, mean that the royalty and rights system is broken and unfair.
This has led to the collapse of music creator income. According to the UK Musicians Union, in 2019, 56% of professional musicians earned £20k or less, with 35% needing a second job just to make ends meet.
“Artists have been powerless to push back, until now,” TommyD explains. “When you respond to the needs of music artists with the capabilities of NFTs you’re presented with a powerful solution that offers endless possibilities.”
TommyD goes on, “New markets where fans support emerging talent through NFT purchases and then share in the success of artists through NFT value appreciation. There are whole new revenue streams through NFT collectibles or monetized playlists. Artists can stay truly independent using contracts created on the artist’s terms, built into smart contracts, which could include rights and royalties management.”
Token||Traxx’s mission is to be at the centre of the new independent music creator economy, driven by NFTs, providing a platform that redefines and enhances the value of music, which supports and financially benefits the whole community.
“We are at a crossroads in the history of music, presented with a rare moment in time to reset the balance in the favour of the creatives and their communities. It is time for them to own their sound!”
The TRAXX token will have its Token Generation Event (TGE) on March 14th, 2022.
This content should not be interpreted as investment advice. Cryptocurrency is a volatile market; do your independent research and only invest what you can afford to lose. New token launches and small market capitalization coins are inherently more risky than large cap cryptocurrencies. These tokens are subject to larger liquidity and market risks.
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