Blockchain solutions company Tokenly announced this week it will open a Series A round and launch the first trial of token.FM, its blockchain-based music service, in early May.
token.FM is a direct-to-fan platform using blockchain technology to allow artists to control their pricing, distribution and revenue sharing from streaming and sales. Its management claims it offers more than 20 times the earning potential of current major streaming platforms. Other benefits include artist and brand collaboration possibilities and unique fan experiences.
“token.FM is all about deepening the relationship between artists and fans while restoring the sense of music ownership that has been largely missing from the digital music experience,” Tokenly CEO Adam B. Levine said. “Now, artists can fully control the distribution of their music and see exactly who their most devoted fans are, rewarding them with exclusive perks. Meanwhile, fans enjoy full ownership of the music they purchase and a closer relationship with their favorite artists and fellow music lovers.
“In the end, it’s all thanks to the power of the blockchain, which we are thrilled to take beyond the stage of conception and concretely apply to direct-to-fan music sales for the very first time.”
Recording artists can tokenize a package of songs into a digital unit, dictate pricing and quantity, and add perks such as discounts and exclusive chats. Each sale is directly identified with its owner via the blockchain.
Singer Tatiana Moroz is the first artist to use token.FM platform, and has placed her entire catalogue on the platform as both MP3 downloads and tokenized albums. Tokenized album buyers receive unlimited streaming rights and exclusive chatroom access. A “Super Tatiana Fan” token allows for pre-sales and backer subscriptions. Those not buying the album can stream songs via a jukebox-style credit system where artists keep 80 per cent of revenue.
“Using token.FM allows me to reward my fans for their goodwill and sharing, which in turn will help me win more fans as they become more engaged and spread the word to their friends,” Ms. Moroz said. “This is a great way to get all the benefits the Blockchain technology provides without requiring a deep understanding of Bitcoin or any of the administrative burden.”