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With the skyrocketing prices of cryptocurrencies like Bitcoin and Ethereum over the past year, cryptocurrency can be a lucrative source of primary income for artists. StarCoin is aiming to help artists seize this moment, maximize their revenues and increase their autonomy. StarCoin is the first cryptocurrency that offers a crypto-backed record label to artists.
First, it’s important to outline the issues of today’s music industry to understand the value that a crypto-backed record label could provide. Generally, when artists sign onto record labels, the label provides the artists with a loan so that they create their album. Artists usually do not make any revenue from their album once it is released until they have paid back the loan. Even once the artist has paid back the loan, the label usually takes the majority of the revenue through an 80/20 or 90/10 ratio at the artist’s disadvantage.
A crypto-backed record label is superior to the traditional record label-signing industry for several reasons. StarCoin is the first cryptocurrency to partner with a record label, allowing a holder of the cryptocurrency to be signed to a contract. StarCoin’s community will have the opportunity every month to vote for their favorite artists, with artists with the most votes being able to sign a record label deal. StarCoin allows talented artists who aren’t as well known or mainstream to shine, enabling them to be seen and supported by people who support their work. Currently, record labels are most interested in signing artists that they believe will generate the most revenue, benefitting artists who are more mainstream, leading to the overlooking of serious talent.
StarCoin is a decentralized autonomous organization (DAO) — an open-source protocol underpinned by blockchain where rules are enforced through smart contracts. The advantage of a DAO is that its leadership is distributed between its members, and everyone has a say in its governance. StarCoin community members who have its coin are able to vote on which artist should be signed, with members who have held its coin for the longest time having greater weight when voting for an artist.
Once enough votes have been garnered for a specific artist, StarCoin and a record label will sign and fund an artist, with the funds generated through transactions for the token. Unlike a loan provided by a traditional artist-record label arrangement, the artist would have free funds and not have to worry about repayment. As StarCoin signs more artists, a portion of funds generated through a tax will be used to contribute to the continued growth of artists and artists signed under the label.
Through NFTs, StarCoin will enable artists to earn up to 80% of the revenues accrued through their music on streaming platforms. Currently, artists only accrue about 12% of revenues on traditional steaming platforms, like Spotify and Apple Music. StarCoin, in addition to signing an artist and recording their music, will facilitate artists’ ability to create exclusive NFTs of their songs and sell it on StarCoin’s NFT marketplace, providing the artist with additional revenue. StarCoin token holders could purchase these NFTs and add them to their collection, resell them on StarCoin’s platform and to other platforms. NFT sales will allow artists to continuously generate royalties, making them earn far more than the typical $.0006 than they currently do through mainstream streaming services.
Cryptocurrency is all the rage and there’s a good reason for it. With the potential to spur creativity, talent, opportunity and autonomy, StarCoin is seeking to benefit artists by providing them with additional funds to spur creativity, opportunity, talent and autonomy.