NFTs are swiftly establishing themselves as an important part of the new decentralized ecology. These digital ownership and authenticity certificates are easily transferrable, clearly distinct, and, most crucially, programmable via smart contracts.
Token||Traxx co-founder and renowned producer TommyD says “Decentralising technology has created an opportunity to address a major problem in the music industry and Token||Traxx is not only the solution but takes it to the next level how we create, discover, enjoy, and own music”.
Token||Traxx arose from a desire to address the music industry’s challenges with people who are passionate about challenging the status quo. Token||Traxx wants to not only alleviate the difficulties that music creators experience, but also to employ NFT technology to build new value generation streams, giving the music community more options in how they control and benefit from their intellectual property.
TommyD raises four issues of concern
To begin with, the scene is dominated by a small number of labels that are funded by the big giant streaming services. The revenue that comes back to artists is stifled by organized efficiencies between these parties.
Second, artist and publishing contracts are antiquated and one-sided; revenue sharing between songwriter and master rights is imbalanced, and contract release clauses are frequently reserved for the label or publisher.
Third, in contrast to a system that supports a wider spectrum of successful artists, only a tiny fraction of artists take a disproportionate amount of market share. Labels help to perpetuate this.
Finally, the royalties and rights system is broken and unjust due to a lack of transparency regarding streaming rates, delayed and unreliable royalty collection, and difficult credit registration processes.
As a result, the income of music creators has plummeted. According to the UK Musicians Union, 56% of professional musicians earned less than £20,000 in 2019, with 35% needing a second job to make ends meet.
TommyD says “Token||Traxx’s mission is to be at the center of the new independent music creator economy, driven by NFTs, providing a platform that redefines and enhances the value of music, which supports and financially benefits the whole community.