Musical NFTs are one of the fastest growing branches in the NFT field. If you’ve been following NFT news closely, you’ve surely come across a wide range of quirky, bold, creative, and even downright crazy NFT drops.
From memes to annoyed monkeys to signed Stan Lee artwork, there’s no end to the ways NFTs can be applied, dropped, and promoted. Of course, NFTs are not limited to digital art. It’s fair game for any digital asset, including music.
The Kings of Leon were the first band to release an album as NFT, with tokens that unlock special perks like special albums, limited edition vinyl, exclusive artwork and front row seats for future concerts, for life.
When the NFT becomes musical and profitable
According to a post on CoinDesk, “Bajan rapper Haleek Maul has earned $226,800 in music NFT Sales on Catalog, while its annualized Spotify earnings are just $178. Maul went on to tell CoinDest that he “…made 81 ETH from five catalog sales, which at the time were worth over $250,000.”
The element of profitability does not necessarily have to be limited to the creators themselves. Holders can also get a slice of the pie, as in the case of the UK FRESHA Records.
FRESHA Records is the combined entity of legendary 90s UK dance labels, Fresh and Freskanova Records, to celebrate 30 years of dance success. On March 25, the combined entity will release a collection of royalty-sharing NFTs (LDAs), dubbed 90 NOWbased on some of the greatest hits of all time from labels and clubs.
FRESHA will score 10 classic singles and 2 albums as NFTs for the collection on the OpenSea Marketplaceincluding some of the labels’ all-time greatest hits.
Holders of NFTs will be entitled to a 10-year royalty share of revenue generated from the source song or album, earned at an annual rate of 15% net pro-rated on all revenue and label shares, at the exclusion from publishing.
The future of music NFTs
This could well be the dawn of a new era in the NFT space, serving as a win-win for everyone in the music industry, from labels to artists to holders.
It’s safe to say that musical NFTs have come a long way since their early days, which consisted mostly of an underground audience of producers, DJs, and others in the music industry itself.
He has become a transformational force, which also creates dialogue by uniting each respective fanbase on Discord who shares the same passion. As stated in TIME magazine“Before, your fanbase couldn’t be in label meetings with you. But now, we’re all the label together.
There is still plenty of room for disruption of musical NFTs, as even remixes can be encouraged as evolving NFTs.
According to digital agency Blue Manakin“Scalable NFTs open up the possibility of more efficient music distribution that doesn’t have to go through middlemen and that makes it easier to create exclusive material, collaborations and remixes, without the legal implications that often arise. ”
Considering all the opportunities that have yet to be tapped, we’ve barely scratched the surface of the potential of music NFTs.