Ornella Hernandez

Music NFTs are having a moment. From major record labels such as Warner Music Group to artists like Steve Aoki and 3LAU, the music industry is seeking opportunities to leverage Web3 to better monetize their work.



Warner Music Group, also called WMG, announced a multi-year partnership with the LGND.io startup on Tuesday to launch a music NFT marketplace on the Ethereum-compatible Polygon proof-of-stake sidechain.



Select WMG artists and creators will be chosen to drop songs as digital collectibles starting in January 2023, <a href="https://www.wmg.com/news/lgnd-io-partners-with-warner-music-group-polygon-on-new-music-and-collectibles-platform" target="_blank" rel="noreferrer noopener">according</a> to a statement from the company.&nbsp;



The platform, called LGND Music, will be a mobile and desktop application that will reportedly support music NFTs or their so-called “Virtual Vinyls” from other blockchains as well.&nbsp;



While iOS users will get to fully own their music tokens, their purchases on LGND’s iOS app will be subject to <a href="https://blockworks.co/news/apple-takes-bite-out-of-app-store-nfts-in-hunt-for-revenue" target="_blank" rel="noreferrer noopener">Apple’s 30% in-app purchase fee</a>.



Among the first artists featured on LGND Music are slated to include those represented by the WMG-owned electronic music label Spinnin’ Records.



<h3 class="wp-block-heading">Steve Aoki and 3LAU</h3>



The Web3 community loves its parties and DJs, and two of the most prolific electronic musicians — Steve Aoki and Justin “3LAU” Blau — fittingly announced that they will use their CryptoPunks NFTs as their alter egos to form a new group called Punx.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">We bring to you: PUNX 10 years of friendship has led to this moment. We are excited to introduce a conceptual music/art project partly inspired by our own <a href="https://twitter.com/cryptopunksnfts?ref_src=twsrc%5Etfw">@cryptopunksnfts</a>. the sound of <a href="https://twitter.com/itsthepunx?ref_src=twsrc%5Etfw">@itsthepunx</a> will be different from either of our current sounds, in fact… <a href="https://t.co/mNlogCLmCz">pic.twitter.com/mNlogCLmCz</a>&mdash; 3LAU (@3LAU) <a href="https://twitter.com/3LAU/status/1600179646456135682?ref_src=twsrc%5Etfw">December 6, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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New music from the duo, who have been friends for 10 years, according to Aoki, will be released in 2023.



“This isn’t an NFT,” tweeted the pair, but rather Punx is described as a “conceptual music/art project” with a different sound than fans are used to from the musicians.&nbsp;&nbsp;



Both Aoki and Blau changed their respective Twitter profile pictures to Punk #6748 and Punk #6708, respectively, signaling that these NFTs may be used as characters in music videos or other visual imagery.



Another example of a duo using their NFTs for musical projects is Eminem and Snoop Dogg, who <a href="https://twitter.com/SnoopDogg/status/1540189746877632514?s=20&amp;t=OJ0ecgoIZOSYaNxeosMrMA" target="_blank" rel="noreferrer noopener">turned</a> their Bored Apes into avatars for an MTV performance. Additionally, Bored Ape and Mutant Ape NFT characters have also been used to form a virtual band called Kingship under Universal Music Group’s 10:22PM label.



Blau owns the music NFT marketplace Royal that allows users to own a piece of a song or album&#8217;s streaming royalty rights. While historically it has only worked with huge acts like Nas, Diplo and Chainsmokers, Royal has now started to give smaller, emerging artists the chance to sell percentages of streams of their songs in the form of tokens.&nbsp;



Independent artist Jake Zimma released his first drop on Royal this week and sold out in two hours. He told Blockworks that this opportunity was a way to “not just grow financially but also a way to engage with fans and generate awareness of my music and brand.”&nbsp;&nbsp;



“While the ups and downs of crypto currencies may be unpredictable, trends within musicians&#8217; streaming behavior can easily be counted on,&#8221; Zimma said.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">&#8220;It&#8217;s an exciting new way for musicians and music fans to get involved with the crypto world, hopefully without as much chaos.&#8221;</blockquote>



“At the end of the day everyone loves music,” he added.&nbsp;



<h3 class="wp-block-heading">Windows’ Winamp MP3 player</h3>



Another company trying to ride the music NFT wave is Winamp — Windows’ desktop media player from the ‘90s.



Its latest update for desktop <a href="https://www.winamp.com/wp-content/uploads/press-release-2022.12.06-winamp-player-now-supports-audio-nfts.pdf" target="_blank" rel="noreferrer noopener">allows</a> its 83 million users to play audio files embedded in their NFTs, <a href="https://twitter.com/winamp/status/1600226376442793985?s=20&amp;t=XNWMZWx0QF8Ec-4EMMYzWg" target="_blank" rel="noreferrer noopener">tweeted</a> Winamp — but it requires a few steps. Those with NFT music libraries on MetaMask would need to link their wallets via Brave, Chrome or Firefox browsers to import the files into Winamp as an .m3u playlist.&nbsp;



Winamp supports ERC-721 and ERC-1155 audio and video files and is compatible with Ethereum and Polygon NFTs.



Winamp users’ responses on Twitter varied from “You lost me with NFTs” to “Lol. No” and “will try this new version.”



Winamp CEO Alexandre Saboundjian stated that Winamp is the “the very first standalone player reading audio NFTs.” His plans also include launching a cross-platform creator service that links artists and fans directly in early 2023.



<h3 class="wp-block-heading">Growth of music NFTs</h3>



Music NFT marketplace Sound.xyz reported that the number of mints of NFTs has doubled in each of the last two months. Dune Analytics data <a href="https://dune.com/nicoelzer/sound-xyz">showed</a> that over a third — around 12,000, of the platform’s 30,000 mints came in November. And so far in December, there have already been more than 7,400 new mints, signaling the likelihood that the total mints will pass last month’s record.



NFTs, whether music or art, enable creators to foster a community around their work built on ownership over their digital assets. Artists can earn royalties each time the NFT is sold, while collectors who also have a stake in ownership may gain exclusive access to shows, merch, meet and greets and more.



Traditionally, the labels who represent these artists distribute their music to streaming platforms such as Spotify and Apple Music. A percentage of revenue from users who subscribe to these platforms is then redistributed among the label, artists and producers in the form of royalties.&nbsp;



This model, however, is a “disaster,” according to Gino The Ghost, music producer and founder of music NFT project Blocktones.&nbsp;



“Labels are making more [money] than ever before while signed artists and the creatives behind those records make pennies (of a penny) on the dollar…Spotify has yet to even turn a profit. Nobody wins,” he <a href="https://twitter.com/GinoTheGhost/status/1539286360170844162" target="_blank" rel="noreferrer noopener">tweeted</a>.



Music NFTs provide a unique vehicle of distribution, he <a href="https://twitter.com/GinoTheGhost/status/1539286005253038080?s=20&amp;t=h1LEW-nSyjFkak3RemdAlw" target="_blank" rel="noreferrer noopener">added</a>, because it “allow artists to package their music in a non-conventional way. Set the supply, engage with your fans, and activate your community with future application.”



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Music NFTs Aren’t Listening to Market Conditions

<div id="highlights-block_6283e36596814" class="highlights">
 <ul>
 <li>A Q&amp;A with Mark Cuban’s entertainment platform Fireside revealed Web3’s disruption of Hollywood</li>
 <li>Spotify and Instagram are experimenting with NFT display features</li>
 </ul>
 
</div>



Music streaming service Spotify has selected a small group of artists to embed and promote NFT galleries on their profiles, <a href="https://musically.com/2022/05/13/spotify-artists-promote-nfts/" target="_blank" rel="noreferrer noopener">according</a> to Music Ally. The NFTs (non-fungible tokens) will appear under the artists’ songs and albums.



Steve Aoki and The Wombats are among the first musicians taking part in the test, and both are big NFT collectors. The feature is currently available to select Android users in the US who can view and buy available NFTs from external marketplaces.



Because users cannot make direct purchases via Spotify, the company is not taking any cut of NFT sales. Spotify sent out a survey to gauge interest and excitement for any additional future NFT implementation on its platform.



Recently, Meta also rolled out a feature for select <a href="https://cms.blockworks.co/meta-trials-nft-display-feature-for-instagram-creators-and-collectors/" target="_blank" rel="noreferrer noopener">Instagram creators to display their NFTs</a> on their feed. 



<h3 class="wp-block-heading">The “Queen of Pop” drop</h3>



Madonna dropped a non-fungible token collaboration with NFT artist Beeple on SuperRare last week that garnered descriptors such as “bizarre” and “spicy” due to its graphic content. The three-part series of NFT videos titled “Mother of Creation” explores the concept of birth, creation and motherhood.



The videos feature a naked 3D avatar of Madonna giving birth to a tree, butterflies and centipedes in different backdrops. The message, <a href="https://motherofcreation.xyz/#charities" target="_blank" rel="noreferrer noopener">according</a> to the website, likens how children come into the world to how an artist brings creativity to life: “You never know where you are going to find life, and you can never give up hope.” 



Proceeds from the sale will benefit three nonprofit organizations that support mothers across the globe, including The Voices of Children Foundation, The City of Joy, and Black Mama’s Bail Out. The triptych was created with infrastructure support by Moonpay, which also reportedly contributed $100,000 to each charity.



So far, 309.1 ETH ($636,823) has been accrued in sales on SuperRare at the time of publication.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh6.googleusercontent.com/g8jGtmXF798IcPxAz9RIXCafyvRh3aW3AfwEODA9ATqdkOXCQ7bBjYt9WNu-XQb1uFBuX2pdj0dIpAGDnNbwZPYMuXDJswbuaxCEvsQvKzBNOQxvqd54fYiuKbAr-7Da4vpBD9p_ifc4LGubQQ" alt=""/></figure>



<h3 class="wp-block-heading">Fireside x SKALE Hollywood grant program</h3>



Mark Cuban’s entertainment platform Fireside and Ethereum-based blockchain network SKALE recently announced a $100 million Web3 creator fund. The “Creatives Unleashed” grant program aims to empower the next generation of Hollywood creatives to transition to Web3 and make content without the middlemen.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">We&#39;re so excited to announce our industry first partnership with <a href="https://twitter.com/SkaleNetwork?ref_src=twsrc%5Etfw">@SkaleNetwork</a> , the $100M Creators Unleashed Grant Program, a game changer for media and entertainment creators to accelerate their transition to Web3! Learn more at<a href="https://t.co/ZoWomX3uxb">https://t.co/ZoWomX3uxb</a> <a href="https://t.co/QesP0VcPzI">pic.twitter.com/QesP0VcPzI</a>&mdash; Fireside (@FiresideChatApp) <a href="https://twitter.com/FiresideChatApp/status/1524531915251879936?ref_src=twsrc%5Etfw">May 11, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Blockworks spoke to Fireside and SKALE to learn more about the partnership.&nbsp;



BW: What kinds of creatives is the program looking for?



Fireside: Fireside is home to over 2,000 different types of creators, including podcasters,vodcasters, authors, comedians, actors, television hosts, filmmakers, musicians and more. This program is for any Fireside Creator who is looking to “Web3-ify” their business with better community engagement tools and unlock crypto-enabled business models. This is the solution for any professional creator who has an established audience and wants to accelerate the transition of their media and entertainment businesses to Web3 via Fireside in a simple way without a big upfront investment.



BW: What problems in Hollywood is Fireside trying to tackle? Why use blockchain technology to do so?



Fireside: We are already seeing signals that the next big content hits will be created between creators and their audiences and brands directly. This is where Web3 comes in by removing traditional middlemen and unlocking entirely new business models where communities and brands can now participate as part of the intellectual property creation and distribution, and help shape the media empires of the future.



Fireside is the next evolution of media and entertainment which is participatory, creator-led, and decentralized in a way that brings creators and their audiences closer than ever before.&nbsp;



BW: What is SKALE&#8217;s long-term vision? Why partner with a content studio like Fireside?



SKALE: Our purpose is to bring the power of blockchains to 1 billion people globally in a way that&#8217;s optimized to give everyday consumers a great user experience. We do this by creating a scalable network of hundreds to tens of thousands of interconnected SKALE chains that work to power decentralized Web3 applications, much like Amazon Web Services does for mobile apps today.



The reason we&#8217;re so excited to work with Fireside is because they&#8217;re really creating a new paradigm for how content is being funded, created and distributed, all using the power of decentralized blockchains. Content has always been king, and we love being able to offer a solution that lets creators do it faster, more affordably and in a way that disintermediates the middleman, so they can create more content for people to consume.



Interview responses were edited for brevity and clarity.



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Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



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Web3 Watch: Spotify Trials NFTs and Madonna’s First NFT Collection

Morgan Chittum

<div id="highlights-block_618a88cd3f5a2" class="highlights">
 <ul>
 <li>McFarlane will be auctioning off some of his original work for the first time this century, starting with Spawn NFTs</li>
 <li>The marketplace, dubbed “OddKey,” will run off Metaplex, an on-chain protocol for buying and auctioning digital collectibles on Solana’s blockchain</li>
 </ul>
 
</div>



Grammy-nominated DJ Steve Aoki and comic book creator Todd McFarlane announced the launch of a non-fungible token (NFT) marketplace on Tuesday. Dubbed “<a href="http://oddkey.com/" target="_blank" rel="noreferrer noopener">OddKey</a>,” the marketplace is “designed to empower creators to showcase and sell authenticated digital art,” Aoki told Blockworks in an interview.



“Something a lot of people ask [me] is, ‘Hey, what advice can you give to a young musician or artist to get their music to stand out? There&#8217;s so much music out here, like how do I get to stand out?’” Aoki said. “[And] that&#8217;s the whole point of building this marketplace. [That] artist can now fit in Todd McFarlane and Steve Aoki’s world. Here&#8217;s a place for you to actually communicate with other artists and creators [on the same playing field].”



McFarlane, who created one of the highest-selling comic books in history, will be auctioning off original art from <a href="https://en.wikipedia.org/wiki/Spawn_(character)">Spawn</a> as NFTs on the marketplace in the near future.&nbsp;



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="500" height="500" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/STEVE_TODD.jpg" alt="" class="wp-image-10806" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/STEVE_TODD.jpg?w=500 500w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/STEVE_TODD.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/STEVE_TODD.jpg?w=150 150w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/STEVE_TODD.jpg?w=257 257w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/STEVE_TODD.jpg?w=261 261w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/STEVE_TODD.jpg?w=219 219w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/STEVE_TODD.jpg?w=80 80w" sizes="auto, (max-width: 500px) 100vw, 500px" /><figcaption>Steve Aoki and Todd McFarlane</figcaption></figure></div>



“This isn’t about Steve and Todd [though],” McFarlane said to Blockworks. “The big victory here is us opening up that opportunity to other creators and giving them the exact same opportunity that we are giving ourselves.”&nbsp;



“Steve and I are in total agreement that we know we will have succeeded when we become irrelevant to our [marketplace.] There&#8217;s going to be so much talent [in OddKey.] There will be so many other [great] artists they&#8217;ll go ‘Yeah, Steve had a nice run. Todd had a nice run, but they&#8217;re the old guys, right?’” McFarlane said. “That&#8217;s a victory.”



The Amazing Spider-Man artist added that if fans “ever have any hope of owning any Spawn artwork or any [of his] artwork [after] 1992, you&#8217;re going to have to go here.”&nbsp;



Aside from OddKey, Aoki has been a heavy <a href="https://www.cnbc.com/2021/04/22/steve-aoki-makes-a-bold-prediction-on-digital-art-as-he-debuts-new-nft.html" target="_blank" rel="noreferrer noopener">investor</a> in NFTs for over a year, first selling his debut NFT collection “Dream Catcher” for $4.25 million on Nifty Gateway.&nbsp;



Aoki predicts that “there’s no doubt that we are moving towards a digital economy. We are going from cash to cashless. Less and less people want [the] physical.”&nbsp;



“When you look at future generations, kids from [ages] 10 to 20, are living in their own metaverse [now]. They&#8217;re playing Fortnite and Call of Duty. It&#8217;s already normal for them to spend money in those places,” he said. “That&#8217;s essentially [what happens] when they buy a skin for a game. They&#8217;d rather spend that 20 bucks buying something like an outfit they&#8217;re wearing in Fortnight, than spend 20 bucks for a t-shirt that they&#8217;re going to wear to school.”



OddKey will be powered by Metaplex, an on-chain protocol for buying and auctioning digital collectibles on the Solana blockchain.&nbsp;



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