Crypto is disrupting another major industry, and it is happening now through Opulous. MP3’s instead of JPEGS?  Opulous is a newly launched DeFi protocol running on top of the Algorand blockchain that allows you to buy an NFT of a song that represents partial ownership and will yield the royalties from that song in perpetuity. Opulous, […] The post You Can Now Own Hit Songs via NFTs and Earn Royalties appeared first on CryptosRus.

You Can Now Own Hit Songs via NFTs and Earn Royalties

Crypto is disrupting another major industry, and it is happening now through Opulous. MP3’s instead of JPEGS? 

Opulous is a newly launched DeFi protocol running on top of the Algorand blockchain that allows you to buy an NFT of a song that represents partial ownership and will yield the royalties from that song in perpetuity. Opulous, created by the founders of music service Ditto, which housed stars like Ed Sheeran, says that this launch will “radically simplify the way in which investors can engage with music.”

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It is an incredibly novel way for artists to raise funds, and investors to be able to actually have a stake in music, and support their favorite artist while earning royalties. What we are seeing is a revolution in music that will put legacy record labels, that have been known to take advantage of musicians, on notice. The first song, Mona Lisa, was launched today, by a popular rap artist named Lil Pump featuring Soulja Boy. The song, and the NFTs representing ownership of the song, sold out in minutes.

These NFTs, called S-NFTs, or Security Non-Fungible Token’s are the first of their kind. “This new way of investing allows you to receive rights to the royalties through a limited edition NFT representation. There are only 5,000 tokens available and there will never be more produced.” These S-NFTs are the very first SEC-compliant security NFTs. They allow immediate funding for the artists, and long-term music rights royalties payouts for the investor.

Anyone over 18 can invest, and Opulous has even created an NFT marketplace where you can swap the NFTs of different songs and a staking platform where you can stake them for yield. “NFT owners can track this passive income and withdraw their earnings directly from their Opulous account. Plus they’ll be tradable on the upcoming Opulous NFT Exchange.” Before, only industry insiders would be able to “own” these songs, but now, anyone can. “Our NFT Exchange allows anyone to invest in music, trade copyright shares, and earn royalty revenue alongside their favorite artists.”

Investors in these NFTs will earn a share of potential profits generated by the master record via streaming, downloads, TV broadcasts, radio broadcasts, public performances, and games, films, etc. In this case, with the Lil Pump song, investors will earn a collective 50% of the potential yield of the song. The royalties are distributed quarterly and distributed in perpetuity. This means that if you invest in a hit song, you may be milking it for potential decades. This type of product could only be done via the blockchain.

Republic, a company that’s “Giving everyone access to early-stage startup investing” is the website that hosts the NFT sales for the songs. They break down the musician in detail, their past revenues from their songs, and all the relevant details so investors have a clear understanding of the artist and song they are investing in. You can see the link to the NFT sale that happened today, here.

As their website states: “When you invest in music offerings through Republic, you are typically buying the music rights through special membership units of an LLC that owns the rights to a song, album, or equivalent. The membership interest may be represented by a non-fungible token (an NFT) which is a representation of that ownership and the vehicle in which returns are distributed.” The NFTs are ASA’s (Algorand standard assets) and all of this lives on the Algorand blockchain. The NFTs will be sent to the Algorand wallet, so users must have one, as that’s where the quarterly streaming revenues are sent.

This is a win-win for all involved, as artists usually only get paid 12% for their song revenues by major record labels, but in this case, the yields can be much, much larger for the artists. With social media, artists can market themselves, and don’t need leech-type record labels that seek to extract all the profits from the artist. Investors will also get perks, such as exclusive Opulous NFTs depending on how much they invest. This is a major moment for NFTs, which many have decried as useless, and a major use case for the Algorand blockchain, and the Opulous DeFi protocol that facilitates the whole endeavor. If anyone says crypto is all speculation and fluff, tell them to look at Opulous and think again.

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