DAO is a relatively new development in the world of blockchain technology. Music DAO could potentially revolutionize the music industry by allowing artists to manage their careers and receive payments directly from fans.
Don't let the unknown term or the new technology scare you off, though! It's a simple concept once someone explains it to you. That's what this article aims to do.
Keep reading to learn what DAO means for you as a music professional. You'll be glad you did, promise!
What does DAO Mean?
DAO is short for Decentralized Autonomous Organization. It's a type of organization that's run through "smart contracts" on a blockchain. Smart contracts are algorithms programmed to make decisions based on specific rules.
Traditionally, control of a business belongs to a small group of people. This is no longer the case with DAO. It isn't owned or controlled by anyone; it operates autonomously.
Speaking of a blockchain, in case you're not familiar with the term, we'll explain that next.
A blockchain is a sequence of data, also known as blocks (hence block-chain). All of them are linked together and protected with cryptography. Each data block encompasses a cryptographic hash of the previous block, a timestamp, and transaction data. By design, blockchains are innately resistant to modification of the data.
Music DAO for Artists
Now that we got all the tech straight let's talk how a decentralized autonomous organization can benefit music artists.
Most everyone knows that the music industry has been struggling since the days of Napster in the early 2000s. Piracy has disrupted album sales, and the internet facilitates it. This makes it harder for music artists to make a living.
Currently, disintermediation is a growing trend. This is when consumers get their content and services from technology platforms instead of more traditional service providers.
One example of a big player in the music industry is Spotify. Streaming is a step in the right direction, but there's still a layer between fans and creators.
Decentralized autonomous organizations (DAOs) are saying they could help to solve this problem. DAOs are organizations run by algorithms rather than by people. They can operate autonomously without a central authority.
That's where a DAO rises above anything done before in the history of music. You can sell your music straight to your fans, cutting out the middleman. This allows you to keep more profits from music sales and have more control over your art and music career. And I know that some of us immediately thought of Bandcamp and their commission free Fridays (they lifted their commissions for some days to allow artists to make more profits). But here, we are talking about the absence of platforms themselves.
Another implication is that fans will buy tickets to concerts and other events directly from the artists or event organizers. This will cut out the need for ticket brokers, who often charge high fees. These fees would come out of the pockets of artists and fans alike.
Using DAO in the Music Industry
Although this is new technology and not all of these options are available yet, let's look at the possibilities DOA are offering to the music industry
Music DAO Fan Clubs
DAO music fan clubs allow fans a presence in the world of their favorite music artists while funding them at the same time. This option is like a street team on steroids!
You can continue making music while being directly supported by your fans. In addition, it would create a more democratic platform for music distribution and allow for greater fan engagement. For example, let your members vote on which version of a song you'll release next or decide on the cover art.
Finally, DAO music fan clubs could also be a learning tool for new artists, helping them develop their skills and better understand the industry.
A Music NFT
Imagine you have a new single or album dropping soon. What if you could issue digital assets in the form of an NFT (non-fungible token) as a way to generate buzz and raise capital beforehand? Access to capital without going into debt and without a record label? Perfect!
In return, your fans get a chance to support you while receiving a long-term investment that they can hold or trade at any time. An exclusive NFT would fit nicely into a music DAO fan club too.
Artist Collective Organizations
An artist collective organization is a type of decentralized music association. This would allow artists and musicians to share resources and advice directly.
Artist Managed Copyrights and Royalties
Another option is using a DAO to manage copyright and royalties. Tracking your music and getting paid automatically is a welcome change from the current broken music industry and a more direct way of doing things.
Nowadays, even streaming services tie up your royalties for long periods and make accounting a bit confusing.
Music Marketplaces and Streaming Services
Creating a marketplace that allows fans to buy and sell music directly from artists is quickly becoming a reality. DAOs also make it possible to create new music streaming services that pay music artists more fairly than Spotify or Apple Music do.
DAO is highly beneficial for artists looking to hold live events. The platform can help artists manage ticket sales, access to the event, and keep track of attendance. Virtual sales of merchandise and even virtual items are possible.
In addition, DAO can help artists connect with fans before and after the event, helping to create a community around the artist and their music
That's a Wrap!
Out of necessity, the music industry continues to grow along with technology. With music DAO, the possibilities are endless! Put your thinking cap on and begin coming up with ideas of how you can incorporate it into your music career.
Music-based Decentralized Autonomous Organization and the music NFT platforms are relatively new. If you start planning now, when the time comes, you'll implement faster and reap the benefits and rewards from the start.
In the meantime, check out Reprtoir, where you can manage all of your music business in one place and make time to think about your next move on DAO.