A guide to blockchain technologies for musicians.

Music NFTs

A recently filed lawsuit between a ‘Pepe The Frog’ NFT buyer and its creator underscores the fragility of contemporary NFT culture. The NFT buyer filed the [US$500,000 lawsuit](https://kotaku.com/pepe-frog-nft-lawsuit-sue-dao-matt-furie-halston-thayer-1848663957) after the creator’s release of free identical NFTs, having believed that his version would be unique. While these types of cases illustrate the importance of transparency and clarity around rights and expectation, it also begs the question: what gives NFTs value?



We ascribe many things to NFTs. Set the artwork from an NFT as your profile picture and you might get asked: what NFT is that? That question is unlikely to be answered with a smart contract address and a TokenID. Instead, people tell the story of the collection, the creator, the art, and might link to an OpenSea entry where all of this is visible. Yet, in its most basic form, the NFT is simply the receipt. It’s proof of a smart contract interaction and subsequent transactions that may have occurred. There’s another way of looking at them, too.



NFTs are decentralized social media objects. A public blockchain as a database we can all write to, where transactions signify interactions between people, can be considered social media. A database operated by its network of participations adds an aspect of decentralization to guarantee security; an immutable source of truth. The receipts, NFTs, that sit in these databases are objects that are held by whoever controls the wallets they’re assigned to. The value the NFTs hold is based on whatever the social network ascribes to it.



Anyone can create an NFT and point its image metadata to the same URL as that of a famous NFT. It’s not right-click + save, but copy + paste + mint. The reason why the original NFT will hold more meaning and value is because of the social relation, the perceived authenticity. The problem is: most people won’t care about looking stuff up into databases to verify that relation. Tech organizations - like [Twitter](https://twitter.com/TwitterBlue/status/1484226494708662273) with its NFT profile pictures - are figuring out ways to bring this verification of authenticity to the foreground. Yet there is a way in which this authenticity can already be brought into a meaningful context immediately.



If the 2010s were the decade of mega-platforms, the 2020s are the decade of communities: a social layer of smaller context, shared purpose, and shared identity empowered by web3’s decentralized social media and the value protocols like cryptocurrencies that underpin it. Rooting NFTs in these communities doesn’t just signal authenticity or ‘being early’ (which is what has driven the value of CryptoPunks), it also lets NFT holders participate in the shared purpose of the community. NFTs’ sales & resales can kickback a percentage to a community treasury, which is governed by verified members of that community, verification being the result of whether they hold a certain token or NFT.



That community can be centered around an artist, a (sub-)genre, a specific scene, a collective - the list goes on. What’s important is that there is a sense of shared identity and shared purpose, as those are binding factors for communities (these creative communities should also consider exploring the ‘[6 elements of a metalabel](https://metalabel.xyz/r01/introducing-metalabel)’). NFTs emerging from communities carry that shared purpose in their DNA, which means that there is a meaningful context for any revenue generated by an NFT through a split towards community members or the community treasury. The receipt is proof of your contribution to the community, be it a DAO or something going by a different label, and it will give you a certain social standing in that community as a patron, fellow investor, or simply a member. 



To wrap up, let’s look at an example situation that’s already possible and will become more common over the next year.



A producer wraps up her work on a banging new track. “This is going to turn dancefloors upside down,” she thinks – no, she knows. Now consider two routes she could take: there’s the traditional route of minting the track as an NFT and putting it up for sale. This allows the music to be valued in ways similar to art in galleries. That’s fantastic. But then there’s the community route: instead, she brings it to her community and they release it together. 



Her community is a collective of ravers who were disillusioned with their city’s nightlife, so they created their own successful party series. Their dream is to take it beyond their city. They’ve formed a treasury to do so, plus a digital community space where dedicated party-goers who have attended at least 5 of their events can join, plan for the future, and creatively contribute to upcoming events. The (international) artists who they book to perform also get added to this community, thus giving the network reach far beyond its regular venues. The party currently mostly breaks even and all revenue is used to fund future events. So to move towards their shared purpose, they need one more aspect to their community: people willing to fund the future. She mints the track as an NFT, adding the community treasury into the split as a recipient, and puts it up for sale. The auction winner doesn’t just get the music NFT, but also a place in the community and access to future events.



While both methods of minting the NFT will have value, the former derives its value and meaning only from the connection to the creator and the associated art (which could get Pepe’d, like in the opening paragraph of this piece). In the latter situation, there is a much stronger social context to the NFT, thus unlocking clear and transparent value and meaning for the holder. Community can be an amplifier for meaning and value. Consider building together.

Community as the Most Meaningful Context for NFTs

As we move forward together into the web3 space, and continue to evolve how and why we release NFTs, it’s important to note that the backbone which supports all of these movements stands on one thing: community. The theme of this new era of music and releases is no longer artist to fan, but artists building with fans, together as part of the shared community evolving together into a new territory. 

Below are some suggestions from our team on how to build a community: prior to releasing an NFT, as part of an NFT launch, and post NFT-release. If we can embrace NFT releases as a small part of a big picture journey into developing a true collaborative community between artists and fans, then the benefits of releasing an NFT can go beyond just a one-off payday (which ultimately could hurt your long-term relationship with your fans). 

Check out these seven steps ways towards building a community, and let us know in our Discord, if you have any additional suggestions to add to the mix. 

1. **Have an open mind when it comes to new opportunities and revenue streams. Be willing to make mistakes.**

For some artists, releasing music the traditional way, touring around records and selling merch is enough. Perhaps they don’t financially need the support of new revenue streams, or they simply want to stop there - and everyone can make that decision for themselves. However, for those looking to jump into web3, support new models and creative ways of thinking about art and the artist-fan relationship, it’s important to go into this space with an open mind. 

If you’ve experimented with new tech or if you consider yourself a pioneer in new lanes (like gaming, live streaming and nontraditional social media), then you’re already on the right path. Plus your fans may already be primed to go on this journey with you.  Because we are all navigating this new space together, and as with all pioneers in a new landscape, not everything is going to work, and there has to be a willingness to try new things and roll with the punches. Having an open mind and a creative outlook is an excellent way to lean into a space where you’re building the car as you’re driving it. That means not being overly precious with every step in the process, taking risks and being open to road bumps along the way. 



2. **Solidify your voice and your vision and be authentic.** 

Web3 relies on community - connection between the fans and the artist, as well as between fans with one another. While social media has helped bridge the gap between artists and fans more than the traditional methods of releasing music, promoting to radio, touring, and securing editorial & playlist placement on DSPs, we are now looking to go a few steps further - even beyond the structures of traditional fanclubs. For this next venture, it’s about defining your story, your voice, your defining characteristics and the things that separate your art, style, mission and creativity from every other artist out there in order to create a world of your own. 

One easy way to build this community is to share more about yourself with your fans directly, and in a way that is as platform-agnostic and decentralized as possible. Take a stance on a cause that really matters to you, talk directly with your fans and let them learn who you are, learn who they are and ask them questions, build a vlog, talk about your likes and dislikes, the meaning behind your lyrics and the stories that got you to where you are. The list goes on. Fans ready to join this community need more than just music - they need to become a part of your world in order to create the sort of strong community that’s needed for web3 music endeavors.

Build an engaged, direct, two-way relationship with your fans… and do it as independently as possible. One of the most fundamental ways you can build your audience, and eventually move towards a decentralized community platform, is to create true and authentic relationships with your fans. Of course if you already have an audience on Tik Tok, Twitch, Instagram or any other social platform - the best way to start is to really start engaging. Posting is not enough. Talk to your fans, share DMs, go “live” and interact. There are a multitude of ways to do this, but building the communication and conversation is key to translating those fans from social platform to decentralized space.  

3. **Lean into tech and blockchain. Learn more about the opportunities available and past projects and use this research to become a pioneer in this space. Start connecting with more people in the web3 conversation (via Twitter & Discord, primarily).**

Before jumping straight into launching an NFT (which you don’t want to come out of nowhere), you have to do the research. Since there is so much information available on the topic and so many new players in the space, while the landscape is changing every day, the big question is where to start and how to distinguish the real from the fake.

We’ve compiled a list below of some resources to check out, including case studies, articles, Twitter handles to follow and Discord communities to join. 

4. **Find ways to introduce your fans to web3 and test the waters to gauge their interest.**

When transitioning from web2 into web3, it’s important to start small rather than throwing a bunch of new concepts at your audience without knowing if they’re familiar or interested.

A few easy ways to introduce your fans to web3 (before launching an NFT or even an artist DAO) are below. Most of these lean on some of the principles we’ve discussed already - creating a direct-to-fan decentralized relationship and communicating authentically with your fans.   

1. Ask your fans what they think. Take a poll on IG, Tweet about it, or post and ask for comments. “If I were to launch an NFT - what would you think?” or “Would anyone be interested in tokenized access to a fanclub for special access to art / music / performances etc?” A great way to see what interests your fans (and to cultivate connection with them) is just to ask.
2. Make sure you have a newsletter - or a way to connect directly to fans outside of social platforms. 
3. Launch a Discord and see how your fans react.
4. Perhaps try your hand at an NFT - when you feel ready. Before going all out and launching a DAO, maybe try this out when you feel ready. Not all NFTs are the same so it’s important to do your research and learn what might work best for your community and fans. (See step 5 for more about how to launch an NFT).

Depending on your fanbase, how much you have done in the web3 space before and how open your fans are to this transition, it may make sense to focus on building new web3 fans from scratch. This should be done carefully, so as not to alienate your web2 fans, but to keep satiating your audience while slowly dipping your toe into web3. In some instances, this is the best way to transition, and will encourage your web2 fans to explore this space with you as you all jump in together. 

5. **Consider releasing an NFT, but only to help establish a long-term relationship with your fans. Think of your NFT release as a gateway to a bigger step towards a continuing decentralized community with your fans.** 

Lots of what is off-putting about the NFT space today, is that everyone seems to be jumping on the bandwagon, and many of those releasing do not have long term plans to build in this space. Like with anything music and art related, it is really clear when a launch is authentic… and really clear when it’s just a cash grab. Fans can see through a brand or an artist who is just here for the fad, but quite the opposite stands true as well: artists who use NFTs as a tool to help build, grow and elevate their art and communities, are the ones who will be the most successful.  

There are many ways to release and launch NFTs and quite a few different marketplaces where you can do so. One of the easiest and most accessible places to get started is Mint Songs, which you likely have already heard of if you’ve already done some reading about this space. Here’s a guide they have posted about [How To Create A Music NFT On Mint Songs](https://help.mintsongs.com/en/articles/5357917-how-can-i-create-a-music-nft-on-mint-songs). 

**POAPs** (Proof Of Attendance Protocols) - or digital “badges” that show proof of attendance - are also a very low barrier to entry for new fans to start becoming familiar with NFTs and how they work. They are also free / have a very low overhead cost for the artist to deploy.

**Wallet Addresses & their importance:** Regardless of the marketplace (or blockchain) you use, there will be a wallet address associated with the buyer of your NFT. A wallet address is unique to each buyer and is a way for you to identify your fans and supporters. While the ability to directly communicate and interact with these wallet addresses is currently in the early phases of development from an average fan UX perspective, we believe there are many empowering opportunities to potentially leverage the fan-artist relationship in the future using wallet addresses. The underlying technological design of wallet addresses and the role they play in the web3 ecosystem enable portability and interoperability. Simplified, these two characteristics may be key in unlocking artists’ dependence on any single platform (such as Instagram or Facebook in “web2”), and as adoption of this technology becomes more widespread, it will give musicians more autonomy over how and where they interact with their community online. 

6. **Build your “Super Fans” and make superfandom accessible to all of your fans.**

Releasing an NFT is one way to gauge and track your superfans, but it’s not the only way. Here are some other ways to identify and build engaged / superfans

1. Any fans who consistently post or reply to your posts on socials
2. Any fans who may be running fan accounts or pages dedicated to your work
3. Fans who are active or who have community leadership status on your Discord
4. Fans who are Patreon subscribers (if you have a Patreon)
5. Fans who are part of your fanclub 
6. Recurring ticket-buyers 
7. Fans who consistently purchase or RSVP for VIP experiences (online or live) 

Before launching an NFT, see if you can identify at least 100 superfans who would contribute to and engage in this launch. If you can’t wrap your head around 100 engaged fans, it might not be time to launch an NFT… and that doesn’t mean it’s not for you. It just might mean that building your community up further before you do so will help your NFT drop be more successful. 

7. **Define your goals: What would you like to achieve with the launch of an NFT?**

What’s exciting about the web3 space (and potentially the most confusing for artists deciding where to begin) is that they can be a stepping stone towards almost anything you can think of. While this step sits at the end of our list, defining your goals is something that should be considered throughout this entire process - and envisioning a roadmap for how your goals can be achieved with the help of an NFT launch is a great way to start. 

**Some creative ways NFTs have been used by musicians are:**

1. Limited edition collector’s items
2. Early access to merch, events, music etc. 
3. Special access to stems, BTS content, 1:1 or group conversations with the artist
4. Private membership or fanclub experiences
5. Entry to a DAO and the ability to help make decisions in the artist’s community
6. Collaborative art & music
7. Fundraising efforts

**External Resources:**

Twitter accounts to follow:

*  <https://twitter.com/i/lists/1465145734517248000?s=20>

Discords to join:

* [Colors](https://discord.gg/colorsxstudios)
* [Seed Club](https://discord.gg/6cDjJGZrYT)
* [WavWRLD](https://discord.gg/PuRVeFHxM3)
* Water & Music
* songcamp
* daniel allan
* rac
* hifi
* catalog
* dreams never die dao
* [sound.xyz](http://sound.xyz)
* goodkarma records
* mint songs
* [createdao.xyz](http://createdao.xyz)
* mashibeats (mdcl's community)
* LNRZ
* Music NFT Women
* Nina
* Apreggi Labs
* P00ls
* ampled
* sone
* MusicFund
* StemsDao
* hedsDAO
* aokiverse
* dirtybird
* dyluminati
* veribaes (verite community)
* Mint (Adam Levy's podcast)
* Zora
* Mirror
* Elektra
* BPM
* WarpSound

7 Steps to Building A Community

Music NFTs. What’s the point.

They’re just a flex, right. Crypto bros buying status and memeing a market into existence.

Where is the ***Utility.***

*Investment* is the Utility.

There’s potentially something special when Artists and Fans can share in success. But it also creates a complex relationship that we don’t fully understand yet. Positive-sum realignment Music’s finances is sorely needed, but it likely isn’t the full answer.

*The Music* is the Utility.

Yes, kinda, but music is more than just a stream of audio. It is the creative process, it is posting a track to a friend, it is building connections. The streaming meta has delivered a fantastic audio stream only product for Fans. Music is bigger than that though, it is shared experiences.

*The Experience* is the Utility.

Music is inherently social, but that’s been lost along the way. The Internet has become sterile and stale. We’ve regressed from the early days of Weird and Personal. But, we have an opportunity to do something. And NFTs can be part of the solution.

NFTs are keys. They are vehicles for digital rights. They are atomised personality.

NFTs are puzzle pieces that can create a contextual collage of colour.

So maybe the question is not, *where is the utility*.

But, ***what utility can we build***.

Utility

Dear Artist,

At times over the past year I’m sure you have come across the newest buzz term, NFTs. They’ve become this hyped up tech term in an already oversaturated world of hyped up tech terms. Some of you have rightfully ignored the term and whatever it might mean and others may have emphatically jumped into NFTs head on. Wherever you are at in your journey on understanding what an NFT is, how to begin using them, and whatever it means for music, we wanted to meet up with you here at EQ and unpack the universe around this emerging trend.

We have gathered some of the leading experts in this space with interviews with artists using NFTs to make a living, as well as to artists using NFTs for becoming discovered, and even self-identified newbies trying to navigate their start with them. We have op-eds from some of the bloggers covering NFTs for music - and at times, when necessary, who have been critical of NFTs, too. We wanted to bring all of this to you as an available resource to help you understand this new world, and hopefully, look beyond the hype that largely surrounds it and recognize it the way our contributors of this EQ Issue do; as a path forward for sustainable communities independent of any one platform.

Yours,

Jack Spallone

Jack Spallone his thoughts on Music NFTs and why this issue is important

Open Letter from Jack Spallone

Chloe Janicki, Head of Web3 for seven20 Entertainment, 720mau5, deadmau5

Management Teams Hiring Dedicated Staff for NFTs ft. Chloe Janicki 

Boy Untitled is a queer indie-pop artist from Los Angeles who has been noted as an "artist to watch" by Billboard, Earmilk, Gaytimes, Out Magazine, and others. His music - described as "thought-provoking as it is danceable”  - mixes vulnerability with alt-pop-inspired dance tracks, and musical roots that reach deep within the queer art & music scene. Both irl and online, he is a proponent of building community. As such, he is currently the Rainbow Community Manager for Good Karma Records and just celebrated the sale of his genesis NFT "Losing Time" which became the first queer music video on Glass.xyz. 

Amplifying Diversity and Inclusion in the NFT Space ft. Boy Untitled

Twitter

Instagram

Featured in the interview: Jermey Stern, co-founder of Catalog. Dwight Torculas, CEO/Cofounder at Mint Songs. David Greenstein, founder of sound.xyz. 

Conversation with Music NFT Marketplace Founders of Mint Songs, Sound.xyz, and Catalog

Mint Songs Twitter

Sound.xyz Twitter

Catalog

We chat with musicians Saint Rien and Rilles on their beginning stages of getting into music NFTs

Conversation with NFT Newbies ft. Saint Rien and Rilles

Saint Rien Twitter

Rilles Twitter

NFT Technology: Frustrations with the music industry and why these artists changed, what the technology is and why it’s important for artists to get on board, and potentially some anti-NFT arguments to keep in mind as we evolve in this space. 

ISSUE 002: Music NFTs

Music NFTs with Latasha & Jack Spallone

fullscreen

Human Experiences: Music NFTs