Musiconomi will reshape the way listeners and musicians engage, building on the capabilities made possible by the Musicoin blockchain. We envision a rich ecosystem where sharing and promoting great music deserves its own reward and where artists can incentivize social sharing to suit their needs.
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 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 revenues in 2016.
However, it’s not the musicians who reap the rewards of their continuous effort of making our lives a little better. The renowned musician Ed Sheeran even claimed he makes less than $0.0084 per stream as the majority of the revenues go to record labels and publishers who act as gatekeepers to fame and success in the industry. This puts new aspiring artists at the whim of large corporations that benefit only those who sit on the top. And usually, they are not the ones who make the music.
Our mission is to build a creative environment enabling artists to exercise control over their content rights and revenue stream by empowering a community of artists, listeners and entrepreneurial music enthusiasts anywhere in the world to create and exchange value in a transparent and timely manner.
Musiconomi will create a platform that enables aspiring musicians and entrepreneurial music lovers to work together directly to form a new global music ecosystem and community. The Musiconomi model will allow musicians to incentivize listeners to promote and share music, while retaining control of their revenue, thereby creating new music economy that inspires growth and rewards all users efficiently and appropriately.
Musiconomi’s platform is the toolbox for building a community that enables sharing and distribution, coupled with immediate payments and disbursements. Our goal is to bring blockchain-based music streaming technology to mass adoption across the planet and build an expanding network of value, sharing and prosperity.
Musiconomi will deliver a wide array of new features as well as new layers of smart contracts that will enable sharing, streaming, all forms of licensing so music can be enjoyed without friction, leaving all stakeholders immediately and appropriately compensated.
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 has provided an important testing ground for the concept of pay-per-play music streaming 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 a for-profit organisation would be formed to secure funding for development of the applications, and the Musicoin foundation would be formalised 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 would move 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 music as well as collection and disbursement revenue. However, over the last two decades, the nature and complexity of those activities has 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 inevitable. The efficiency gains that come with removing or replacing outdated systems and organizations with low-cost, automated alternatives will give a significant advantage to first-movers.
By recognizing and embracing new technological advancements and building a self-sustaining platform that harnesses the power of each, Musiconomi will be well positioned to be a dominant player in a new music economy. Furthermore, the Musiconomi platform will be accessible to the aspiring and amateur artists that currently have few options other than to give their music away for free in hopes of being “discovered” by a major label.
By allowing new artists to have immediate access to the social marketing engine that Musiconomi will provide, artists will be able to begin connecting with fans and collecting revenue as soon as they have track they are ready to share, thereby adding a new segment to the music economy that has not been well-served traditionally.
Musiconomi will run on the Musicoin blockchain and use Smart Contracts to automate the collection and disbursement of payments to musicians, using a “Pay-per-Play” model. Under this model, a payment is sent in digital currency ($MUSIC) directly from the listener to a digital contract, which then automatically distributes funds as designated by the artist or rights holder.
In addition, artists will be able to incentivize social sharing and growth by allocating a percentage of revenue to users that share or promote their music. Critically, the artist is in complete control of the reward. This will allow artists to decide between higher revenue or more promotion at the granularity of an individual track.
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 $25bn 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.
Subscription Streaming Services
While the legacy industry has attempted to adapt to 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 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.
Peer-to-peer file sharing networks
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 needs to 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.
Musiconomi’s experience and success with Musicoin.org give it's 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, The Musiconomi project 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.
Building on the Musicoin Ambassador program, 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 is 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 is it 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 recognises that platform development and growth will occur at an accelerated rate over a number of years. Therefore, the first one million users may a be reached within three years, and then 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 payments) 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 incentivize 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 are being rewarded with early access to MCI tokens 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 incentivizing sharing that builds strength and value of the network, the Musiconomi project will reserve up to 3% of funds 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 organization and enabling significant participation in platform development by stakeholders and members of the community.
Musiconomi will expand on the concepts developed as part of the Musicoin project and will run on the Musicoin blockchain. In particular, the Pay-Per-Play model will continue to play a central role in the system. Pay-per-play is an easy-to-understand the model that allows artists to specify the revenue allocations at the time of upload and be confident that each play will be properly accounted for.
Using PPP as the core of the system, Musiconomi will create the necessary tools to grow a self-sustaining music economy. In particular, the Musiconomi Token (MCI) will serve a central role by enabling features that will allow entrepreneurial (and even casual) users to participate in a meaningful way. By “locking up” a certain amount of MCI tokens, users demonstrate their mutual interest in the success of the platform, thereby aligning incentives.
As Musiconomi builds and expands the platform, the MCI token will gain new functionality. In general, locking up MCI tokens will enable specific types of functionality that will allow users to participate directly in the new music economy. The number of tokens and duration of the lock-up required will be dependent on the functionality it enables. However, many basic features that users would expect of any music service will be available without requiring token lock-up.
For detailed descriptions of the initial set of planned token utilities please see the blog post at The Musiconomi MCI Token Utility - A Closer Look
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 the the proposed features and plans to further develop the concept of bringing blockchain pay-per-play music to the masses through Musiconomi will be designed and built in the spirit of the original vision of the founders. Therefore, it is preferred that the Musiconomi platform use the Musicoin currency and run on the Musicoin blockchain.
That said however, it is the responsibility of the proposed Musicoin Foundation to ensure that the Musicoin blockchain is secure, scalable and up to date. The Musiconomi team will collaborate with the Musicoin Foundation and is prepared to provide it with funding in order to achieve that end.
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.
With the success of the basic Musicoin platform, the Musiconomi team has been eager to build a new version of the platform that provides all the features and opportunities for our growing community to participate in the new music economy.
We are confident that we will continue to develop the platform with the same kind of success we have enjoyed up to this point.
Musicoin Project Achievements (as of May 2017)
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 revenue sharing to any third party or to fund platform operations.
Musiconomi aims to break-even within 60 months.
Scope of Work:
Open Musiconomi office in a strategic market centre
Launch Advanced Blockchain-Based Music Streaming Application (streaming pay-per-play 2.0)
Build and Support Basic Sharing/Backing Features
Develop Playlist Feature
Develop Playlist Sharing Features
Develop Mobile App
Time to implement
Target number of users
30% first 24 months
Development Expenses 70%
Marketing and PR 21%
70% next 48 months
Development Expenses 60%
Marketing and PR 31%
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
50% release to public
25% team, partners
25% strategic partnership reserve
Team tokens will be vested for 18 months.
Strategic Partnership Reserve: This allocation will be for music professionals such as independent/artist labels, musicians, DJs, producers, promoters, distributors etc. to incentivize 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 Musiconomi platform.