WE ENVISION A NEW MUSIC ECOSYSTEM
Since the advent of the internet the music industry has been in a constant battle how to keep up with the revenues of especially content distribution and the royalties involved. Piracy and streaming solutions have driven down revenue and margins and still there is no ultimate business model that rules them all - soundcloud is in demise, spotify does not pay enough royalties, and others do not pay royalties at all. The industry is being governed like an oligopoly with a few very powerful actors, and in addition, the current way of doing business requires too much time to get paid without any transparency if that will happen at all. Even Spotify and Youtube have difficulty in finding the owners of certain music rights and therefore hundreds of millions of dollars are not sent to their rightful owners, or end up in certain ‘black boxes’. There is no transparency in who owns what and if you are fairly compensated. Registration is a hassle and incomplete/non-transparent solutions result in inefficiencies, revenue loss, and too much legal hassle. Thus, in the end musicians are not fairly compensated all the while they are at the very core of the industry.
The music industry is being dominated by large players. Large streaming organisations, large record labels and publishers. Since these organisations are not specifically innovative and adept to change it will take time before new solutions arise, especially for smaller and unknown artists that do not deliver profit yet. Especially for these musicians it is difficult to stand out nowadays in an area dominated by large actors.
In addition being a musician is a broad definition. Musicians earn money with composing songs, live performances, teaching, merchandise, song sales, royalties, endorsement deals, licensing their song, session acts, or play in exchange for other goods. They are probably one of the most creative business people, but they lack supporting infrastructure. We believe that developers and musicians - who sometimes are one and the same - could work more closely together to create more services that can aid musicians along the way. There is a need to tackle some of the core infrastructure for the music industry to keep it fair and creative for those thousands of artists to come. Before we can build these targeted solutions and make lives of thousands of musicians easier we will have to emphasize some of the core challenges as tackling these would open up an ecosystem of solutions.
The core problems;
Ownership rights Currently there is no central storage of ownership rights and the insight in ownership rights is time intensive, incomplete and non-transparent. The necessary solution is live and transparent insight in ownership rights.
Distribution of revenue and incentives
Then, we also face differences in incentives; some actors within the ecosystem appropriate more value than other, especially the smaller musicians do not have the possibility to appropriate their much needed and deserved value. Therefore the incentives of all actors should be aligned. The distribution of your earned revenue also takes time. Sometimes it takes months, without any guarantee that the right amounts are transferred to your account. The distribution should be artist-centric, transparent and quick.
Different business models
Then we have the fact that musicians have many different business models; every musicians creates his own way of working her or himself to the top. We think it is time to create insights into data so that it is much easier to start from scratch and understand how your fellow musicians did before you. So, there should be more open and free information for musicians to start. There is need for a better User Interface.
We envision a new music ecosystem
We envision a new music ecosystem; a blockchain-based platform that creates an artist-centric standard, where integrity, transparency, respect of rights, and fair exchange of value are key. We envision an easy registration of ownership rights for every musician. It should be easy to acquire insight into these rights. We envision ease of transactions, almost instant payment provision. Where every participant in the ecosystem gets his fair share of revenue. We would like to put the musician - the actual creators of the commodity - in the middle again. We will provide the possibility for every musician to create his or her own business model, provide templates of a multitude of models up front. Give them the autonomy to easily raise funding. A place where you can upload your song at every connected streaming network within one click.
We envision one place to take care of all of your music business. Where every participant has the incentive to add value to the network. Where the founders of the network do not keep accumulating value unless they provide value themselves. A marketplace that in the long term is organised democratically and decentralized.
THE CONCEPTUAL MODEL
A platform for musicians, streaming services, record labels and listeners. As a musician you can register your music, manage and pay-out royalties, and execute crowdfund actions. Create or connect a streaming service with existing contracts, including payment services. Record labels can easily move their artists on the blockchain to automate processes and agreements between them and their musicians. Listeners can listen to music legally, donate or invest in musicians and/or their songs.
MooseCoin concept; moosecoin is a way to register your music. By registering your song directly onto our blockchain you are creating a copyrighted version that is timestamped. So registering your own music has become easier than ever. With this registration it becomes easier to acquire donations, endorsement deals, licensing deals and be paid as easily too.
In short the Moosty Blockchain Platform it is a decentralized database where users follow a protocol to record the ownership of a token. The token can be described as a currency and with the registration contains information about ownership. As long as the token is in the users hands, the specific rights are owned by this person. This registration can take place without notary, banks or record labels as trusted third parties and therefore it disintermediates the industry regarding some specific tasks.
There are certain steps to take before we can leverage the full potential of this solution. In essence the fundamental registration of ownership right is the fundament upon which other solutions can be built.
Entities, Smart contracts & Templates
As an artist it is possible to register yourself, song, album, or brand. You can create rules for the commodities you register; per song you can define settings for royalty divisions, accessibility by third parties, you can sell certain ownership rights and more. These settings are prescribed within smart contracts, these can be seen as standard templates.
On the blockchain different entities will be established to provide different relations and contracts. At first the entities for artists, songs and record labels will be created. Every entity has different contract possibilities. With this structure you are able to create a contract as an artist or per song. The hierarchy will automatically work through in following contracts afterwards.
Smart contracts for every instance
In the future Moosty will create smart contracts for every instance. As an artist you will be able to pick your favorite division of rights and incorporated rules of execution. You will be able to compare your contract with thousands of comparable artists who have done it before. These contracts will be co-created with our industry partners.
Example of templated contracts:
● royalty statements
● pay per play contracts
● standard collaboration with record label contract Building an ecosystem with aligned incentives The Moosty Blockchain Platform creates an ecosystem with participants who collaborate with the right incentives. Including most of the current music industry actors. On top of the blockchain a multitude of new services is possible. Our mission is to create the most used blockchain solution for upcoming artists and facilitate everything from the necessary funding until the distribution of revenue and the administrative and legal efforts alongside it.
As said before musicians are one of the most creative business people around. Every musician has his or her own way of creating revenue and enjoying life. This is one of the beautiful things of the music industry while at the same time a difficulty for starting artists. There are so many different roadmaps, possibilities and challenges. We will provide a way of working that will facilitate this lifestyle and create cool services on top of it.
Within the Moosty Blockchain Platform environment artists will register their songs and therefore create a commodity - a song, an album, merchandise, a brand. This will attract investors to fund the artists in which they believe. We envision that investors, fellow musicians and consumers are also willing to donate to musicians they like to provide them with the basics to create more commodities. Artists will receive these donations with MooseCoin, some of them will be to invest in the creation of new music, some of them will be provided within smart contracts in exchange for a specific commodity. In return the artists will create more commodities that will create a higher valued MooseCoin. The marketplace is the place where a musician can receive donations, where they can sell part of their song, brand, merchandise, where they can close licensing deals, or get in contact with other musicians and possible partners.
To stimulate developers to create new services - to create standard formatted smart contracts, new templates, data insights, etc. - Moosty and the community can place requests in the marketplace. Developers that answer these requests get funded through two mechanisms; 1) from the Moosty Reward Engine and through donations from the user who placed the request. This way developers acquire a reward for creating Moosty specific services.
Delegates - developers keeping the infrastructure online
The infrastructure is a bear necessity and also the facilitator of this approach. Thus, it is of utmost importance that the infrastructure works properly. Uptime and security are two major factors. That’s where the blockchain facilitates us. Every user of MooseCoin will keep a copy of the decentralised database on their device and delegates will keep the infrastructure online. These delegates are 101 stakeholders that have the incentive to keep the infrastructure up and running. For the maintenance of the network they will receive MooseCoin and their participation can be judged via indicators, uptime being one of them.
In the marketplace people can donate or invest in musicians. By acquiring royalties, or investing in performance rights investors can help musicians to get funded and in the meantime earn a little profit if they invested in the right musician and songs. In the meantime the investor will see more profit when he promotes the artist, this will result in a broader network for the artist. Investors can be individuals as well as other musicians, record labels, etc.
Legislatory bodies also benefit the system as legal aspects can be automated, compliance can be demanded technologically and ownership disputes can be settled easily. This results in a more transparent sector, more efficiency in reaching compliance and less costs. Possibly new entities will be born from this section. When the time comes that legislative parties are able to adopt blockchain solutions Moosty will be open to implement solutions that benefits musicians in a multitude of ways.
The Moosty Blockchain Platform
Moosty Streaming Network
The Moosty Streaming Network gives the possibility to connect to third party streaming services and third party labels etc.
Moosty Streaming Service
The Moosty Streaming Service is the first user of the Moosty Streaming Network. It will be a non-profit streaming service where musicians can upload their music and music lovers can enjoy new music. The service will promote upcoming artists, pay-out royalties through the Moosty Blockchain Platform and will stay free (open source).
● Non-profit streaming service
● Music platform for upcoming musicians
● Pays out royalties through the Moosty Blockchain Platform Governance Moosty Foundation
The Moosty Blockchain Platform will be governed from the Moosty Foundation. This foundation will govern the Moosty Ecosystem through the funding of operations, marketing efforts and the creation of incentives for developers by providing Reward through the MRE (Moosty Reward Engine). Over time the Moosty Foundation will become decentralized and decision-making will be democratically reached.
The Moosty foundation will take care of the operational tasks and will govern the Moosty Reward Engine.
○ promotional activities
● Moosty Reward Engine
Ecosystem co-creation & regulation
A major challenge is the changing of habits of all ecosystem participants. We will have to convince major parties within this ecosystem to integrate with blockchains and it will be a difficult task to do so. We are convinced that blockchain has the future and we are willing to play a frontrunner role to make this work. We will establish a consortium of actors from the music industry and governmental agencies to collaborate on the creation of this entity. There are still a lot of challenges to tackle. One of the challenges is the blockchain domain from a macro perspective. A legal entity should fall under regulation of some sort, let it be global, american, european or national regulation. One of the challenges is the fact that smart contracts can be created without compliance to certain regulation, we should be aware of the fact that without regulating some of the basics of the system it will not be acknowledged as a legal entity. This is a major challenge that we believe should be tackled somewhere in the short term future since blockchain is gaining a lot of attention.
In the meantime we provide basic principles that will guide the way and with that provide a foundation upon which the whole ecosystem can build viable applications that will be accepted internationally.
Onboarding & UX design
Blockchain development is in its infancy, it currently remains for the most technologically enabled people to join. This will change the coming years, maybe even months. As we would like to attract a specific group of people that may or may not be tech savvy we will create interfaces and services that will provide an easier understanding of blockchain, and create more awareness how to operate your wallet. We believe that good technology is also easy to onboard and understand. Thus, one of our pillars is creating a frictionless user experience by making the technology accessible via a good user interface.
More to come:
● Elaboration on the specific entities
● Technological specifics of the platform. See our Github for the open source code.
● Token sale
● Use Cases
The Moosty Team Follow our blogs on moosecoin.io for more information