Welcome to Myosin’s first Annual Predictions Report. This undertaking is our largest collective editorial project of the year, and the result of countless hours or research that started in November 2022.
We didn’t take this undertaking lightly — each of these ideas went through an intense process of research, writing, and editing to make sure we are pushing the envelope further for our industry to think broader and more strategically about what’s to come.
In this report, we’ll cover a wide array topics that we hope will help you navigate your busines in the most strategically way possible for 2023. From the blending NFT x DeFi products to the potential for new forms of capital allocation through thematic digital cooperatives, we are bullish on the state of web3, and the incredible promise it brings for the future of the Internet!
Let’s dive in, starting with how mainstream consumers will touch web3 tech without even knowing it.
1. The music industry unlocks fresh ways for artists to create, collaborate, distribute, and monetize their songs
According to Ziggy Ziggy Music’s guide to web3 music , there are 7 distinct sub-industries forming within the web3 music space. The 7 focus areas are:
- Music curation platforms
- Music royalty sharing platforms
- Discovery, aggregation, and playlist platforms
- Decentralized streaming
- Music protocols
- Music production tools
- Marketing tools for musicians
Based on the current landscape of web3 music technology, here are a couple implications we will see for the music industry in 2023.
Web3 music production tools pave a way for on-chain reputation scores for musicians
Web3 native collaboration and music production tools like Digital Audio Workstations (DAWs) have been developed and launched in 2022. On-chain DAW tools unlock a new way to collaborate on music production. Rather than production files getting locked within DAWs like Ableton Live, ProTools, Frootie Loops, or GarageBand, the web3 native DAW Arpeggi offers musicians and producers a more open-ended solution.
For session musicians, this paves a way to earn on-chain contributions to recording sessions. Session musicians will earn a reputation score for contributing to a hit record, and perhaps even earn a percentage of the royalties from the album.
Web2 music discovery and aggregation platforms adopt web3 tech
Discovery and aggregation platforms like Audius are enabling music NFTs to be discovered and streamed, and they will (eventually) allow musicians to monetize their IP. However, more than 99% of the music available online is discovered, aggregated and distributed to consumers on centralized services like Spotify, Soundcloud, and Shazam.
While these centralized services do not have an incentive to put their streaming services on the blockchain, we’ll see web3 developers use Spotify’s API to apply web3 technology to their pipes.
For example, HeyMint, a platform that enables NFT projects to collect an allowlist, pioneered the ability for an NFT collector to purchase an NFT if they presaved a musician’s album on Spotify. The reason why this is such a big deal for the industry is that Spotify presaves are the biggest driver of mainstream playlisting support. By coordinating an online community to activate on Spotify, more fans will discover musicians that publish and monetize music NFTs but distribute their music on web2 streaming services.
As a result of these use cases, Spotify is hiring a Senior Manager of Innovation and senior backend engineer who will help Spotify leverage new technologies like Web3. The team will work within Spotify’s experimental growth team on the freemium side of their product offering, which begins to outline how Spotify is thinking about entering the blockchain space.
Musicians find new ways to monetize their audience
The current way for musicians to monetize their music is to sell NFTs as concert tickets or digital WAV files. But in 2023, we’ll see fanbases for web3 native musicians like VÉRITÉ pave the way for artists to monetize their music that the fanbase wants. For example, fans will vote on the type of products they want to purchase (e.g. merch, meet-and-greet sessions, or private concerts) in collaboration with the artist’s manager. Furthermore, decentralized music communities like NoiseDAO and SuperF3st are pioneering ways that a musician can leverage a fanbase to organize showcases and national tours.
2. Restaurant tooling for web3 Loyalty Programs emerge
Leave it to Gary Vee to pioneer a blockchain-based membership program for restaurants. FlyFish Club is a members-only omakase restaurant. Unlike other members-only hospitality brands that operate a restaurant, FlyFish Club allows members to transfer ownership of a member card in order for anyone to book a reservation at this highly-anticipated restaurant.
David Rodolitz, Founder & CEO of FlyFish Club, says “The technology is what allows you to authenticate ownership over something. It allows you to embed the smart contract and it allows you to seamlessly sell or transfer this ownership to someone else.”
What is more interesting about this member-owned restaurant is that FlyFish Club can build a brand more quickly through a Direct to Community method of building the brand than the traditional (aka web2) method of building a brand Direct to Consumer.
While the NFT membership offers a built-in community, the real benefit here is the token-gated Discord server that gives members exclusive access to IRL events around the world, benefits, and networking opportunities through a “holders only” Discord channel. This unlocks the ability for NFT-powered restaurants like FlyFish Club to co-create the brand together. We’ll see more loyalty tools and products emerge this year from product studios like Blackbeard Labs.
3. Apple’s NFT policy pushes web3 dApps into web applications
Apple just announced that distributing NFTs through its iOS App Store is free, but the usage of the NFTs to unlock “utility” triggers Apple’s typical 30% rake on app publishers using its App Store.
This will likely result in mobile experiences that leverage NFTs focusing on web-based applications.
- Mobile browsers — Apple still runs Safari, which 30% of North American iPhone users use to browse the web. Web browsers like Brave, Mozilla, as well as wallet-native browsers such asMetamask and Phantom, will begin to gain adoption.
- Web3 native app stores — Just as we saw in the 2021 battle for NFT marketplaces and distribution platforms, we’ll see the same for web3 dApps using mobile web browsers to unleash the benefits of NFTs.
- Subscriptions as NFTs — Netflix, Disney, and other streaming services will experiment with putting subscriptions on the blockchain by releasing access pass NFTs.
We’re already seeing the rise of web3 enabled experiences for the mainstream. In the world of music for example, Medallion.xyz is introducing NFTs as access passes for die-hard fans who want to join a musician’s community via the artist’s website. NFTs are presented as “passports” that a superfan can claim directly on the artist’s websites using a web app interface. No App Store (or Google Play Store) links.
4. Consumer brand loyalty programs adopt Polygon as their preferred blockchain
According to a Deloitte report, “Blockchain is an ideal remedy for what ails loyalty rewards programs.” The chief complaint among customers is the long delays in delivering rewards points and the opaque and difficult-to-redeem benefits they provide.
From daily brands (like Starbucks Coffee and Reddit) to sleeping giants (like Hilton and United Airlines), we’re already seeing consumer brands adopt web3 technology to power new forms of user engagement for their platforms.
NFTs represent a vastly new way to empower the consumer to use access tokens and loyalty programs like never before, and we’re seeing that shift happening now.
For example, with Starbucks’ Odyssey program, a customer’s gold stars (which are rewarded based on purchasing coffees) are a digital asset on the Polygon blockchain. By hosting these digital collectibles on a blockchain, customers are now able to trade or sell their coveted gold stars to other people who want to use this digital asset across the web3 landscape, as both an asset that can be transferred across metaverse platforms or simply used as digital bragging rights in their web3 wallet. Polygon has already onboarded many mainstream brands, and continues to grow their reach, increasing their network effects.
In 2023, we’ll see that the campaigns that highlight how a consumer is able to co-create with their favorite brand will generate the most platform adoption, social engagement, earned impressions, and press hits from news publishers. And just as we’ve seen with Nike’s Swoosh platform, we’ll see more brands using blockchains like Polygon, and never mentioning anything related to NFTs, tokens, or wallets to drive user adoption quickly.
5. More consumer brands *Enter The Chat* with non-fungible tokens
To date, leading retail brands have cumulatively earned more than $250M in revenue from non-fungible tokens (NFTs), according to data from Dune Analytics. We have seen consumer brands leverage the IP built within the web3 world to engage with their most digitally-savvy customers:
- Fendi x Ledger released a limited edition cover for Ledger’s Nano X cold wallet
- Tiffany & Co produced CryptoPunk-themed pendants for CP holders
- Chicago Bulls x DeadFellas released limited merchandise to cross-pollinate audiences
As more brands enter web3, we’ll see new pathways of how a brand can leverage direct-to-community tactics to build their brand. For example, Hennessy’s 2022 Art Basel activation powered by Friends With Benefits (FWB). Hennessy tapped FWB’s digital community to assemble a dream team for the event: an award-winning mixologist, a recognized illustrator, and a creative agency founder. Hennessy minted 1765 NFTs and priced each access pass at $450/token for the event. The FWB community earned 34% of gross sales, while Hennessy was able to enter the web3 world in a way that honored its 257-year-old brand.
Community led initiatives unlock the Future of Work and new ways of working.
In part two of our 2023 predictions report, let’s look into the implications of the technology that is defined by web3. One of the implications with decentralized internet money is that digital communities can earn together. We’ll see an expansion of new digital co-operatives, clustered into skills-based, passion-based and purpose based DAOs. Oh, and DAOs will find a new nickname in 2023.
Let’s dive in, starting with Part 1, where we cover mainstream web3 consumer adoption.
6. Highly skilled remote workers from digital co-operatives
DAOs unlock a Future of Work for highly specialized skill sets. We’ve seen DAOs form communities around interest (eg: FWB), industry (eg: Water & Music), and mission (eg: CabinDAO), but in 2023 we will see more specialized skills-based communities emerge. From tokenizing expert legal advice (example: LexDAO), to tokenizing project-based creative work (example: Wakonomy), we will see a faster rate of web3 technology adoption globally, starting first with remote workers.
But how do service DAOs operate legally across multiple countries, each with their own labor and tax laws? New methods of working breeds new ways to gainfully employ people online. WorkDAO and Opolis make it incredibly easy for a growing startup to hire internationally without having to deal with the legal rules, regulatory guidelines, and endless paperwork associated with hiring someone outside your home country.
Service DAOs are like network-based talent marketplaces, and Myosin.xyz is just one of many examples of how a specialized network of highly-skilled people can generate value. The key innovation here is that a community-run service DAO is essentially a chat room with a shared community bank account. By structuring these internet native organizations as a digital collective, members align their financial and professional interests to prioritize the network over themselves, which is something we haven’t seen until now.
7. Event producers crowdsource ideas to co-build festivals and cultural events
Branded experiences will continue to be an effective way for web3 communities to grow their audience & community treasury. For example, Behr Paint partnered with Doodles to organize an event at SXSW. For their next event activation, Doodles worked with their community to create a mini golf course activation during Art Basel 2022.
While the innovation here is really just a membership pass that grants an NFT holder access to an exclusive event, DAOs like SuperFest will redefine how events are brainstormed, organized and produced.
SuperFest aims to be the decentralized festival producer for the festival goer by funding community ideas and initiatives. Its membership is made up of event producers, musicians, A&R executives, and superfans. What makes sčgup3rfest so disruptive is that the DAO membership can tap into the unmet desires of the broader fanbase for festivals.
By allocating funds and human sweat-equity based on a community’s needs rather than a centralized party’s, Superf3st is able to meet the needs of the music community faster, more natively, and more locally than a Live Nation would be able to.
8. Digital native communities fortify their networks by cross-collaborating more frequently
The burst of DAO formations in 2022 — from social DAOs, investment DAOs, governance DAOs, and purpose-driven DAOs — breeds new opportunities to cross-pollinate audiences. Here are four examples of what we saw in 2022 that will continue through 2023.
- SuperF3st x The Wanderers organized and hosted a party for their communities at a Miami mansion during Art Basel 2022.
- Boys Club x Aave hosted a meetup for the female and non-binary web3 community at DevCon Bogota, Colombia. Guests mingled with Aave’s founder and team to learn more about their protocol, partnership, and employment opportunities.
- Dead Fellaz x Adam Bomb Squad collaborated during Halloween 2022 to throw a party for their communities. Attendees were able to pick up limited edition merchandise, which is now selling on the secondary market (check out this sweatshirt for over $350).
- FWB x Refraction Festival collaborated in March 2022 for a night of some of the most vibrant dance music, both old and new, at New York's Public Records. Both social DAOs are vanguards of how decentralization can push forward new forms of arts and culture. Ron Trent, internationally renowned DJ and producer, took over a venue in Brooklyn to headline a night that otherwise showcased talented up-and-comers in New York’s underground music scene.
Rather than thinking of this trend purely from an audience development point of view, it’s important to consider the implications of such cross-collaboration. These interest-based communities are enhancing the functionality of web3 social profiles. When Boys Club collaborates with Aave, we can clearly see how two seemingly unrelated communities can help each other's mission. And these deeper and longer-lasting connections between DAOs will pave the way for 2024 and beyond.
9. Non-profit organizations (NGOs) tap the wisdom of their patrons to drive community-lead initiatives
We have seen the success of consumer-facing NGOs like Charity Water, Habitat for Humanity, and Global Citizen Festival utilize Direct-To-Consumer tactics to build their brands. While they have leveraged birthday gifts, corporate volunteering programs and pro-bono concerts to further their mission, web3 technology offers a new way for non-profit organizations to prioritize initiatives.
Gitcoin is a shining example of blockchain-based grant funding, having contributed over $72 million in funding to over 312,000 developers creating open-source technology. As a result, this global community of public goods enthusiasts is voting on what important matters the community treasury should fund. Using Gitcoin’s governance tokens, GTC, community members can vote on what funding areas our Gitcoin Grants Program will focus on. For example, a community member can vote for climate solutions, diversity, equity and inclusion (DEI) initiatives, open-source software, or regenerative finance in order to inform how Gitcoin allocates funding.
Web3 technology unlocks new methods to monetize
10. Games will let their players rent and lend out their digital skins
According to the 2022 Fashion Metaverse Trends report from gaming giant Roblox, nearly half of Gen Z users say they dress their avatars as a way to express themselves. Epic Games sold $50 million in 2021 sales of digital skins in their popular MMO game FortNight.While it may be unlikely for us to see Fortnite skins that are transferrable outside of Epic Games’ walled garden, it will be possible (in the future) for players to rent out their rare skins.
As demand for DeFi products from retail investors increases, it is likely that the gaming consumers will want to use other financial instruments to earn a living by playing video games. Streaming is only one avenue of monetization for labor and assets in gaming, so we’ll most likely see new financial models enter the metaverse (e.g.: lending NFTs for short periods of time via NFTFI or FRAKT).
More platforms, such as NiftyApes, will emerge — blurring the lines between in-game assets and digital assets that can be used as collateral for a loan.
11. Popular games enter video streaming and create a new way to monetize their intellectual property
One in three people on the planet play games, based on Statista’s latest survey in 2022. The average age of a video game player is 35, which is squarely within the target demographic for web3 enthusiasts. However, only 1% - 3% of the world owns cryptocurrency or NFTs.
This large gap in global adoption of gaming features powered by web3 technology is likely due to the fact that there are two types of gaming innovation happening at the current moment:
- Triple-A games are experimenting with blockchain technology. For, example Ubisoft's own Quartz blockchain hosts Digits NFTs, and is built on the low-carbon Tezos blockchain. However, the challenge here is that gaming publishers are disincentivized to enable in-game digital assets to be interoperable with competing game publications.
- Blockchain native games like Star Atlas, one of the leading games on Solana blockchain, are building up intellectual property in both the game development as well as the lore that establishes the game narrative.
At the same, we will see online streaming publishers like Netflix, Amazon, and Paramount+ continue to acquire licenses to adapt popular games into TV series. Netflix alone has announced more than a dozen video-game adaptations, including well recognized games like Pokemon, Minecraft, and Cyberpunk.
So, how are all these trends related?
Netflix is experimenting with web3 technology to engage with their audiences directly. Animated series “Love, Death & Robots” went Web3 with its third season, which was released in conjunction with a digital scavenger hunt for nine QR codes tied to NFTs hidden across social media accounts, physical billboards, and even within the show itself.
Between gaming industry giants experimenting with minting assets on the blockchain, web3 games building lore, and online streaming giants bridging the adoption of web3 technology for their owned IP, we can read between the lines to see the opportunity.
12. DeFi continues to explore collateralized debt and tokenizing real world assets on the Ethereum blockchain
The total value locked in cryptocurrency dropped from $110 billion during 2022 to $26 billion according to DeFi Llama, as of the writing of this article. However, Ethereum still represents the majority of DeFi activity, as 60% of the total value locked on this cryptocurrency that has the most brand awareness outside of Bitcoin.
We’ll continue to see advancements in DeFi tooling, investment DAOs, and social networks on the Ethereum blockchain, due to Ethereum’s existing market share, decentralized app (aka “dapp”) development, and density of non-dilutive funding available for founders who want to explore new use cases like collateralized debt and tokenizing real assets like real estate.
Debt issued using a blue chip NFT as collateral already exists. Companies like Arcade offer NFT traders the ability to borrow and lend against valuable NFT assets.
DebtDAO is using on-chain cashflows to issue debt. Their product called “spigot” is able to escrow 100% of cashflows if a borrower defaults. This is the first time on-chain loans have trustless protections for lenders that borrower’s revenue must be used to repay them.
The first apartment sold using blockchain technology was in 2017, when Michael Aarington sold his Kyiv apartment through a real estate NFT auction.
In 2022, we have established a precedence for digital real estate to retain value on-chain. In 2023, we will see more experimentation with lending & borrowing against real assets like commercial and residential real estate, tokenizing cashflows from rental properties, and other explorations that will create more innovations in the space. By continuing to experiment with how DeFi technology can drive efficiency for traditional financial industries like real estate, more economic value will be put onto the Ethereum blockchain.
13. Traditional Financial Services leverage web3 tech to ease the burden of stock issuance and fund administration
The traditional financial services industry is ripe with opportunity to leverage web3 technology. Today, it takes between 6-9 months for a company to get set up with an employee stock option program (ESOP), and it costs countless hours coordinating with consulting firms, not to mention consulting fees that can quickly add up.
Companies like Hedgey and Magna are forging a new path for traditional financial services to leverage web3 technology to ease the burden of ESOP administration.
For example, Hedgey can issue NFTs that nest fungible tokens (aka ERC-20 tokens) within them. One of the biggest ways that a company or investor benefits from this is that the token vesting schedule is managed on-chain — there is complete transparency in the administration process. Additionally, since these NFTs have tokens nested within them, if a holder wants to sell or trade their NFTs, the remaining rights to the fungible tokens can also be transferred to the new owner, among other features that a founder can customize for their own unique use case.
14. SaaS tools and subscription services leverage web3 technology minimize password sharing
The current standard Software as a Service (SaaS) subscription model consists of monthly/yearly recurring payments. It started in publishing, and now it is used in almost all industries, by businesses including The New York Times, Netflix, Amazon Prime, Seamless, and Peloton.
However, SaaS businesses often incur lost revenue due to password sharing. In 2022 alone, it has been estimated that Netflix is losing up to $6 billion in lost revenue due to password management. While two factor authentication (2FA) and IP tracking can minimize these issues, there are still ways to coordinate with co-workers to enter a 2FA code or use a VPN to work around Web 2 technology loopholes.
By token-gating access to SaaS products with NFTs, software companies will be able to limit access to 1 seat per subscription purchased. If a SaaS product wanted to lock the access to each unique user, product managers can leverage soul bound tokens (SBTs) to ensure that only one person has access to one seat. We’ll see more experimentation on this front soon.
15. Affiliate marketing networks begin to experiment with on-chain purchase data
The affiliate marketing landscape was a $19 billion dollar industry as of 2021. As consumers purchase more assets on the blockchain, the problem of tracking marketing campaign performance on-chain will become more painful for direct response advertisers.
Much like how Rakuten, Skimlinks, or Commission Junction works, web3 affiliate networks will pave a way for on-chain attribution, which opens up a new way for marketers to assess a return on investment (ROI) for their marketing activities. Since web3 technology rarely uses cookies and protects user data and consumer privacy more strictly than traditional web2 websites, vendors like Spindyl will be able to track ROI from marketing activities to purchasing behavior on-chain.
16. The fashion industry explores ways to crossover into digital wearables and tokenize the secondary market for collector items
We’ll see more fashion brands explore ways to leverage the digital wearables trend to drive real tangible business results. Influencers have been wearing digital versions of their physical clothes since 2021, as a way for fashion brands to tease out new collections without having to produce costly and labor intensive physical samples.
Fashion production makes up 10% of humanity’s carbon emissions and 85% of all textiles are discarded each year, according to a report by Bloomberg. This has resulted in significant pushback and efforts to reduce the fashion industry’s carbon footprint by reigning in supply and returns while looking to digitize where possible.
The innovations won’t stop there in 2023. Brands are already exploring ways to own more of the secondary market for their collector items. According to StockX’s industry research report, the secondary resale market is a $6 billion industry, and Nike, Jordan, and Converse shoes typically see between a 47% to a 67% markup in the secondary market.
Nike is exploring ways to own more of the secondary market for their collector items through their .Swoosh platform. The digital goods platform is squarely focused on empowering designers to create digital wearables and is exploring ways for creators to earn royalties on both digital and physical resales of their designs. By engaging local creative communities, Nike is taking advantage of the digital paradigm shift from direct-to-consumer to direct-to-community.
For retailers that want to build a web3 native view of their customer, a digital NFT to physical activation strategy is a terrific way to enter web3. InBetweeners (the NFT project backed by Justin Bieber) is releasing limited edition clothing produced by Dolce & Gabbana. InBetweeners NFT holders were able to claim one of 2,000 digital assets that have the theme of luxury fashion and art. They debuted with a limited release of Dolce & Gabana hooded sweatshirts, sweaters, knitted caps, and other clothing from their vault.
By partnering with a web3 native brand, Dolce & Gabbana is able to identify the web3 enthusiasts within their fanbase. It will not be surprising to see Dolce & Gabbana begin to introduce their own IP onto the blockchain after the success of this initial campaign.
16. Marketers adopt Physical Backed Tokens (PBTs)
Proof of Authenticity
NFT community Azuki’s launched an NFT standard called the “physical backed token” to introduce a decentralized way to validate proof of authenticity. According to the Azuki founders, “No organization will have the exclusive ability to authenticate or verify ownership of objects”.
Considering luxury retail consigment ecommerce websites like The Real Real and Stock X that base their entire business model on authenticiation, one can quickly see why decentralizing the need to authenticate physical items can really unlock economic value for brands like LVMH. In fact, LVMH, Prada, and Cartier have formally announced the development of Aura Blockchain Consortium, the world’s first global luxury blockchain in 2021. LVMH has using blockchain technology to explore proof of authenticity for its luxury goods.
Physical to Digital
For retailers that want to encourage shoppers to purchase physical goods with the bonus of a digital replica, companies like Gummy.Link use near-field communication (NFC) chips to enable consumers to redeem NFTs after purchase.
Kids of the Apocolypse, a music NFT project on the Solana blockchain started by two wunderkind creative executives, released 123 limited edition sweatshirts before their upcoming PFP drop. Each person who purchases a sweatshirt will be airdropped an NFT that gives them access to the upcoming drop, among other perks to early adopters that Derek Davies recently mentioned in a Twitter Space.
The Physical to Digital onboarding experience in 2023 won’t be limited to the retail industry, either. Three’s Brewing, a popular local brewery leverages digital NFTs to keep track of which beers their patrons purchase, which creates new opportunities to engage with their most loyal followers.
18. Restaurants continue experimenting with Loyalty Programs on the blockchain
Leave it to Gary Vee to pioneer a blockchain-based membership program for restaurants. FlyFish Club is a members-only omakase restaurant. Unlike other members-only hospitality brands that operate a restaurant, FlyFish Club allows members to transfer ownership of a member card in order for anyone to book a reservation at this highly-anticipated restaurant. David Rodolitz, Founder & CEO of FlyFish Club, says “The technology is what allows you to authenticate ownership over something. It allows you to embed the smart contract and it allows you to seamlessly sell or transfer this ownership to someone else.”
What is more interesting about this member-owned restaurant is that FlyFish Club can build a brand more quickly through a Direct to Community method of building the brand than the traditional (aka web2) method of building a brand Direct to Consumer.
While the NFT membership offers a built in community, the real benefit here is the token-gated Discord server that gives members exclusive access to IRL events around the world, benefits and networking opportunities through a “holders only” Discord channel. This unlocks the ability for NFT-powered restaurants like FlyFish Club to co-create the brand together.
19. The Fine Art world finally understand the value of owning a piece of meme culture
DAOs like PleasrDAO are exploring the outer edges of the IP debate in web3. PleasrDAO bought the Doge shiba inu meme for $4 million in 2021. Asked why PleasrDAO acquired the rights to the Doge meme, Santiago Santos, a PleasrDAO member and a partner at the crypto investment firm ParaFi Capital, responded “we purchase and collect pieces which we believe are timeless and priceless mementos of digital and crypto culture”.
NounsDAO is a collective of 323 members who have purchased a Nouns NFT to gain access to a $30 million community treasury. Members of the DAO are able to submit proposals that the DAO votes for, enabling any member to get the startup capital they need to execute their proposal. What is the purpose of the NounsDAO collective? To introduce an internet meme that is borne from web3 and crypto culture.
Why does this matter for the fine art market? The entire operating model for the fine art business is owning IP. But with web3, the person or organization that owns an open-license artwork is owning a community movement. As we move towards a world where a community creates value from co-ownership and co-ordinattion, there are new forms of commercialization. Owning a Nouns NFT would be like owning a relic of the Roman Catholic Church. Rather than owning an physical artifact of an “open-source” religion, CC0 digital assets is like owning a digital artifact of a community backed by a community treasury. The difference is here that a “digital religions” like the Doge shiba inu, Pepe the Frog, MFers is that the community can spread faster than a religion could at the speed of a meme spreading throughout the internet.
20. The music industry unlock fresh ways for artists to create, collaborate, distribute and monetize their songs
According to Ziggy Ziggy Music’s guide to web3 music , there are 7 distinct sub-industries forming within the web3 music space. The 7 focus areas are:
- Music curation platforms
- Music royalty sharing platforms
- Discovery, aggregation and playlist platforms
- Decentralized streaming
- Music protocols
- Music production tools
- Marketing tools for musicians
Based on the current landscape of web3 music technology, here are a couple implications we will see for the music industry in 2023.
Web3 music production tools pave a way for on-chain reputation scores for musicians
Web3 native collaboration and music production tools like DAWs have been developed and launched in 2022. DAW tools on chain unlock a new way to collaborate on music production. Rather than production files getting locked within DAWs like Ableton, ProTools, Frootie Loops, or GarageBand, a ((enter web3 daw name)) builds an alternative built on top of web3 rails.
For session musicians, this paves a way for for them to earn on-chain contributions to recording sessions. Session musicians will earn a reputation score for contributing to a hit record, and perhaps even earn a percentage of the royalties from the album.
Web2 discovery and aggregation platforms adopt web3 tech
Discovery and aggregation platforms like Audius are enabling music NFTs to be discovered, streamed and will (eventually) allow musicians to monetize their IP. However, more than 99% of the music available online is discovered, aggregated and distributed to consumers on centralized services like Spotify, Soundcloud, and Shazam. While these centralized services do not have an incentive to put their streaming services on the blockchain, we’ll see web3 developers use Spotify’s API to apply web3 technology to their pipes.
For example, HeyMint, a platform that enables NFT projects to collect an allowlist, pioneered the ability for an NFT collector to purchase an NFT if they presaved a musician’s album on Spotify. The reason why this is such a big deal for the industry is that Spotify presaves are the biggest driver of mainstream playlisting support. By coordinating an online community to activate on Spotify, more fans will discover musicians that publish and monetize music NFTs but distribute their music on web2 streaming services.
As a result of these use cases, Spotify is hiring a Senior Manager of Innovation and senior backend engineer who will help Spotify leverage new technologies like Web3. The team will work within Spotify’s experimental growth team on the freemium side of their product offering, which begins to outline how Spotify is thinking about entering the blockchain space.
Musicians find new ways to monetize their audience
The current way for musicians to monetize their music is to sell NFTs as concert tickets or digital WAV files. But in 2023, we’ll see fanbases for web3 native musicians like VERITIE pave the way for artists to monetize their music that the fan base wants. For example, fans will vote on the type of products they want to purchase (eg: merch, meet-and-greet sessions, or private concerts) in collaboration with the artist’s manager. Furthermore, decentralized music communities like NoiseDAO and SuperF3st are pioneering ways that a musician can leverage a fanbase to organize showcases and national tours.
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