Music is an integral part of our lives that brings us closer and connects us. It’s a common language we all speak regardless of age, nationality, religion, race, or culture. Music is also a lucrative form of business. People all around the world are streaming 5 trillion songs online and the music industry reached $15.7bn in revenues in 2016.
However, much of the revenue from music does not go to the creators of value. The most obvious example is the musician, who often receives only a small fraction of revenue collected from end users, and although the music economy is complex and is influenced by many different organizations and individuals, only some are value creators in their own right and deserve to be compensated for their contributions. Others are not.
At Musiconomi, we have made it our mission to recognize and incentivize value creation, starting with the musician but extending to the bloggers, promoters, fans, labels, and others that help make a thriving music economy possible.
Musiconomi's mission is to build a global environment where artists, DJs, bloggers, promoters, listeners, and other entrepreneurial music enthusiasts can create an exchange value in a transparent and timely manner.
The platform will offer:
The following tenets will be used by the Musiconomi team to guide our decisions at every level, from technical decisions to strategic partners and long term planning.
Having made significant contributions to the successful launch of the $MUSIC currency and the beta Musicoin platform, the members of the Musiconomi team have gathered a tremendous amount of feedback from the community that will form a basis for its future development and guide them on the mission of building a blockchain based music economy.
The Musicoin Project provided an important testing ground for the concept of streaming music with integrated smart contracts on a blockchain. The Musicoin team was successful in demonstrating the feasibility and market appetite for such a platform. The next step was to develop a go-to-market strategy and solicit funding for the next stages of growth and development.
It was subsequently decided that Musiconomi would be formed as a for-profit organization to secure funding for development of the applications, and the Musicoin Foundation would be formalized by Isaac Mao to focus on blockchain-specific issues including maintenance, security, and general improvement.
Dan Phifer, Brian Byrne, Elio Di Iorio, David Werba and Jared Griego have since been moving to establish the Musiconomi Project which would build and promote an expanded music streaming platform that would engage a broader community of artists, users and entrepreneurial music enthusiasts that will bring a blockchain-based music system to the masses.
The music industry has evolved over the last century largely to support the promotion and distribution of music as well as the collection and disbursement of revenue. However, over the last two decades, the nature and complexity of those activities have changed dramatically. With the advent of the internet and digital music, distribution has been dramatically simplified. Similarly, social networks with billions of active users have formed, making efficient and organic growth possible.
Most recently, digital currency and blockchain technology have provided a more efficient and elegant method for collection and disbursement of funds that works globally and transparently. Together, these advancements in technology make a new music industry not only possible but in our opinion inevitable. The efficiency gains that come with removing or replacing outdated systems and organisations with low-cost, automated alternatives will give a significant advantage to first-movers.
The power of blockchain technology and smart contracts to move value in a direct, transparent, and frictionless way allows for payments to be made quickly and efficiently from listeners to creators.
But solving the issues of royalty payments and publishing rights is just the beginning. Whether streaming, downloading or having a physical copy, there is far more involved in creating a music economy that works for everyone than just the music listening aspect.
The Value Of The Musiconomi Platform Comes From Its Community.
The Musiconomi platform will facilitate collaboration between a rapidly growing community of artists, listeners, bloggers, and partners. We recognize that both individuals and organizations have a wide variety of contributions to make to the music economy and we believe a platform that simplifies and streamlines interactions between them will grow rapidly and organically. It all starts with musicians and the fans that want to help them succeed but will expand quickly to include many other players, such as bloggers, labels, professional promoters, 3rd party merchandisers, and more. The goal is to ensure that each new integration or supported interaction adds value.
There is no limit to the number of niches in the music industry, and the Musiconomi platform will seek to provide each member of each one of those niches with a customized presence within its community of supportive music enthusiasts, and the opportunity to grow their business through the multiple uses of the MCI token.
Paid streaming has become the preferred method for consuming music through services such as Spotify and Pandora. However, even though the total number of streams surpassed 5 trillion in 2015, both the services that drive the growth and the artists themselves are struggling to make a profit. In large part, this is due to the complex web of intermediaries that take a cut of the revenue for each play.
In theory, there is a $25bln market for music streaming if we look at the current numbers. Currently, the music industry is at $15.7 in revenues, roughly 60% of where it could be.
While the legacy industry has attempted to adapt to the digital music era, the old system of intermediaries still exists behind the scenes, taking a significant portion of revenue. Artists ultimately receive only a small fraction of the revenue and have almost no visibility into the process and almost no way to verify that they were compensated appropriately. Blockchain technology offers a significant advantage in this respect, as all transactions on the blockchain are visible.
Other attempts to circumvent the aging industry have been made by systems such as Napster and BitTorrent, but they failed to create a sustainable model by neglecting to collect revenue and compensate artists. While peer-to-peer file sharing may have a role in the new music economy, it would seem appropriate that it should be done in a way that content creators and distributors are compensated according to the value they add.
The Musiconomi solution is: cryptocurrency for payments and smart contracts for distribution and tracking who should be paid for each track. Ultimately, P2P sharing could be supported, and key management (for audio decryption) would be the only required central service.
Although traditional players, such as Spotify, Google Music, and Pandora, are well established, they offer very little that allows non-musicians or non-music industry entities to participate directly in the music economy. Additionally, Musiconomi’s initial focus will be on independent musicians and micro-labels, which are not well-served by the traditional music industry. Therefore, we are confident that we will experience significant growth for the foreseeable future before encountering direct competition from traditional players.
Musiconomi’s experience and success with Musicoin.org give its team a significant advantage over other entrants into the music-on-the-blockchain space. However, additional entrants in this space will only help to educate the wider, non-technical public about the potential for a relationship between cryptocurrency and music. While we believe the Musiconomi model offers a more holistic approach to the new music economy, we recognise that basic awareness and acceptance of cryptocurrency is a major hurdle.
Although traditional players, such as Spotify, Google Music, and Pandora, are well established, they offer very little that allows non-musicians to participate directly in the music economy. Additionally, Musiconomi’s initial focus will be on independent musicians and micro-labels, which is not well-served by the traditional music industry. Therefore, we are confident that we will experience significant growth for the foreseeable future before encountering direct competition from traditional players.
The members of the Musiconomi project have continued the work they began as members of the Musicoin team of actively recruiting artists to the project through a combination of select event sponsorships, music conference presentations, strategic partnerships, educational programs and multiple social media channels.
Flowing from that activity, Musiconomi will expand marketing and promotional activity on a massive scale, to include a focus on emerging indie artists, artist labels, distributors, and tech-savvy artists and entrepreneurs.
The Musiconomi team is intent on creating a massive network of entrepreneurial music enthusiasts who bring their unique combinations of interests, experiences, and talents to an ever-expanding community.
Accelerating this process is the fact that we are committed to constantly adding value for participants and constantly uniting networks. Musiconomi advisors and strategic partners bring to the table extensive reach within various communities and work alongside the team to introduce the world of music and blockchain technology to all the opportunities found within the Musiconomi platform.
The Musiconomi Team will continue to identify and engage with individuals who are able to provide support and value to the platform through cross-promotional activities and synergistic/collaborative use of resources.
Whether it be musicians, promoters, educators or community organisers, the Musiconomi team will actively seek to build a strong contingent of ambassadors who will spread the Musiconomi message far and wide.
We realise that blockchain technology is in its infancy - in a similar way that the internet was very much a promising but unfamiliar technology in the late 1990s. The Musiconomi project and its rapidly growing community are uniquely positioned to bridge the gap between technology professionals and non-technical potential users of blockchain technology based applications.
In the beta testing of the Musicoin platform, the team began recruiting instructors and facilitators who would provide tutorials and support services to Musiconomi participants to both familiarize them with platform features, and empower them to build their own presence in Musiconomi that would add value to the network and enables them to generate revenue for themselves and other stakeholders.
The Musiconomi team is currently identifying strategic traditional and non-traditional geographical areas to establish community hubs.
Partnering with local artists and other music industry professionals and enthusiasts in developed countries as well as in the rapidly urbanising emerging markets, the Musiconomi platform will support and enable local music economies to exist in a way that the legacy music industry cannot.
In bypassing the complicated and wasteful myriad of intermediaries inherent in the traditional music oligarchy, artists in developing nations will be able to share their music free of cost, enjoy the full support of the Musiconomi network, and receive a payment that is relatively high compared to average worker wages in their local community.
As an example, an artist with a little local support in rural Africa may be able to earn the equivalent of $60 USD per month which may be significantly more than the local average monthly income. Such an artist may then begin to share her success story across neighbouring communities and soon there could be hundreds and thousands of artists from emerging markets earning income in a way that was never before possible or even imagined.
With the advent of the internet, music has become much more ‘niche’. New genres are emerging all the time, and many labels are becoming increasingly genre-specific and genre-diversified.
The Musiconomi team envisions thousands of micro-labels and artist labels that represent artists in non-exclusive agreements, where songs are signed - as opposed to artists. Therefore, an artist could conceivably release five songs on five different labels at the same time. No longer will it be necessary for an artist to aspire to sign a traditional record deal. Simply develop relationships with fans, and ensure they are incentivized to share/distribute your music.
The Musiconomi team recognizes that platform development and growth will occur at an accelerated rate over a number of years. Therefore, although the first one million users may be reached within three years, the next one million users may be achieved in less than 3 months. This means that the early stages of development provide the greatest amount of opportunity to become established and productive on the platform, earning many streams (and potentially rewards) and accruing all of the benefits that platform pioneers tend to enjoy down the road as mass adoption begins to happen.
The Musiconomi team is focused on continuing to nurture and incentivise early adopters who will form the core knowledge, value and support base for the Musiconomi community in the long run. To that end, early adopters including community members, artist ambassadors and strategic partners are being rewarded with as well as advanced access to new features that are developed subsequent to the conclusion of the crowdsale.
As part of the core Musiconomi concept of incentivising sharing that builds strength and value of the network, the Musiconomi project will reserve up to 3% of revenues and revenues (Bounty Reserves) which will then be available to community members who are able to execute on approved proposals, and who contribute meaningful work to the network. This aspect of MCI is designed to incentivise behaviour that supports both artists and the ecosystem.
The Musiconomi team is committed to running a lean organisation and enabling significant participation in platform development by stakeholders and members of the community.
It’s not enough to just create a music streaming app that remunerates creators directly and immediately. That is a great starting point. But in order truly create a global music economy that works for everyone, that streaming app needs to be supported by an engaged and enthusiastic community that actively shares content and is rewarded for doing so.
Musiconomi will provide multiple tools and features on the platform designed to drive engagement, allowing entrepreneurial music enthusiasts as well as 3rd party integrators to creatively add value to the platform through the use of those tools and features.
Musiconomi will not only rely on community members and strategic partners i.e token-holders, to use the tools and features of the platform, but will actively engage and recruit them to participate in the creation of virtually all aspects of the platform.
The Musiconomi team evolved from the Musicoin experience as volunteers come on board with new insights and perspectives that have shaped the way the project has unfolded. While it is expected that individuals and organizations will use the platform for their own entrepreneurial activities and business needs, the ability to contribute and to continue to inform the way new features are designed and developed is fundamental to the long-term success of the platform.
As new features are conceived and developed for specific individual uses for specific individual business case e.g. DJ tools, Blogging tools etc. it is anticipated that the means to effectively employ those tools and features will be communicated amongst community member in a largely peer-to-peer way. This will enable a reduced involvement of Musiconomi staff in doing the work of the development of the platform, focusing instead on co-ordinating development of the platform between active users, producers and entrepreneurial music enthusiasts.
The new Musiconomi token (MCI) is intended to perform the key function of settlement between parties including creators, users, and other platform participants. The token will be the currency of payment and reward for all value exchange on the platform. It will also be used as a ‘staking’ mechanism whereby token holders are able to access tools and features of the platform which will may enable further opportunities to add value and earn rewards.
Social Sharing and Promotion
One example of how MCI tokens will be used on Musiconomi is Social Sharing, where fans and promoters can be rewarded for sharing their favorite music. This addresses a key issue with many new (and even established) artists: promotion.
Once an artist or band records the final version of track, they may feel a momentary sense of accomplishment … quickly followed by the realization that the hard work of promoting the new track has yet to begin. And, while social media such as Facebook and Twitter provide a convenient way to reaching out to existing followers, reaching new audiences is much more difficult.
At Musiconomi, we see this problem as a tremendous opportunity for the artist, their fans, and other entrepreneurial music enthusiasts. By providing a simple mechanism for artists to reward users that share and successfully promote their content, an artist can kickstart social growth with the click of a button. Fans will have an exciting opportunity to actually help their favorite artists succeed and more entrepreneurial users will be able to seek out and promote talented artists that have not yet found their audience.
When artists release a new track on Musiconomi, they will be able to specify the reward for direct referrals that lead to a playback. Artists seeking an audience may offer a much larger reward, whereas established artists may offer less. All of this is, of course, automated and happens seamlessly behind the scenes.
Promoters (casual listeners, die-hard fans, or just users seeking new talent) will be able to use MCI tokens to generate a referral link that can be shared on social media, on their own website, or in a blog post. In most contexts, the referral link will be presented in an embedded player (similar to SoundCloud) and can be part of a playlist that is actually a collection of referral links.
Each time a user pays to play the track using the embedded player, the original promoter receives a small reward -- even if the post is re-shared by their followers.
Will it work for bloggers and other content creators?
Yes! In addition to being able to embed tracks directly into their articles, bloggers will be able to incentivize social sharing among their readers as well.
In addition to Social Sharing, the following platform features are in initial development stages with many others set to follow and included to the original host of features originally developed through the Musicoin project. Each of these advanced features may require the user to lock up some MCI. In general, the requirement for MCI lockup aligns incentives between the user and the platform and makes abuse less likely.
Beyond the ability to access content, tools and features of the Musiconomi platform, the Musiconomi team is also enabling a host of third party providers to access the Musiconomi Ecosystem, who can then accept MCI as the token of exchange for music-related goods and services.
The founders of Musiconomi spent many months developing the Musicoin platform and building the community from the ground up, and they are passionate about its underlying principles. All of the proposed features and plans to further develop the concept of bringing a blockchain-based music platform to the masses through Musiconomi will be designed and built in the spirit of the original vision of the founders.
At present, blockchain technology is in its infancy. Its potential is tremendous, but unexpected challenges can arise. As prime examples, Ethereum was forced to implement a hard fork only a year ago, and Bitcoin has been plagued by the ‘block-size debate’ for years - without resolution.
As much as the Musiconomi team is committed to the Musicoin philosophy, it is also committed to ensuring the long-term viability and sustainability of the Musiconomi platform.
Therefore, the development team will continuously monitor the development of emerging technologies that could provide a significant improvement in security, scalability, efficiency, or user experience, however, the Ethereum blockchain offers the best solution at present.
The Musiconomi platform will reserve a nominal fraction of each transaction resulting from third party sharing and distribution in order to fund basic operations of the platform. All artist/rights-holder generated streams will remain 100% directly remunerated without any fees to any third party or to fund platform operations.
Musiconomi aims to break-even within 60 months.
For the development of its crowdsale protocols, Musiconomi has partnered with crowdsale specialists Cofound.it, whose experience and depth of knowledge in cryptocurrency crowdsale activities ensure that the most current best practices have been applied into the process in every respect.
$3mil USD Threshold
Scope of Work:
Target number of users: 50k
$6mil Hard Cap
Scope of Work:
PROJECTED USE OF PROCEEDS
The team has had the benefit of studying numerous other crowdsales and draws on the expertise of crowdsale pioneers Cofound.it to ensure an appropriate and sustainable allocation of crowdsale proceeds and tokens.
To be Issued: 100 million MCI tokens
Team tokens will vest for 24 months.
Strategic Partnership Reserve: This allocation will be for music professionals such as independent/artist labels, musicians, DJs, producers, promoters, distributors etc. to incentivise them to connect their fans/network to the Musiconomi platform. It will also be used to compensate strategic advisors and ambassadors who are willing and able to support/promote the growth and development of the Musiconomi platform.
For further crowdsale details and email updates please visit Musiconomi.com