The Chainsmokers were the first to share royalties from an entire album with fans. An NFT will be sent to 5,000 fans, granting them a share.
The Chainsmokers, an electronic music duo, are most well-known for their catchy songs ” Closer”, and “Paris,” but they also have a reputation as Web3 pioneers. Their latest album, “So Far So Good,” will feature a drop in NFTs which will allow fans to share in 1%.
This is the most prominent example of musicians using NFTs for royalties to be shared with their fans. Although artists such as Diplo and Nas have previously issued NFTs that generate royalty from specific songs, this is the first instance of a band doing so free of charge for an entire album.
Drew Taggart, Chainsmokers, stated that “We’re trying go deeper than wide with our fan base through this new album.”
Taggart and Alex Pall discussed their process of identifying their loyal fans in a conversation with decrypt. They did this by analysing data from concert sales, music streams, and Discord activity.
An NFT token is a unique way to show ownership of digital assets such as music, art, and video games. The Chainsmokers will be entitled to a share in royalties. However, they will also have access to the Discord channel for members and the opportunity to meet the duo directly.
The NFT recipients will be notified on a quarterly basis or semi-annually about when they have received a payment. A smartcontract, which is essentially a computer program, will be used to deliver 7.5% to The Chainsmokers. (One of the benefits of NFTs to artists is the possibility to receive a cut from secondary sales), which they say they will donate to the album’s song writers.
Friday’s new album will drop and the NFTs will go out on May 17. The Chainsmokers rely on a platform called royal to distribute the NFTs. It uses the Polygon network and was behind recent NFT drops by Nas and other notable artists.
According to The Chainsmokers, they have made arrangements for the NFTs to be released in a manner that does not require crypto knowledge from their fans. While crypto-savvy fans can request the NFT in their Web3 wallet. However, beginners can ask Royal to create a wallet and trust the site to store and display it.
The duo have also made arrangements for their fans to be able acquire and transfer NFTs without any transaction fees.
The Web 3 era marks the entry of the music industry
Although this is The Chainsmokers’ first issue of NFTs, they are not new to crypto. The duo has been operating an investment company for years that has supported many Web3 projects, including Royal. This was started by Justin Blau, aka DJ 3Lau.
Pall claims that Taggart and he first met crypto six years ago when they were working for Google. A random man entered their trailer during a break between sets and spoke a blue streak about blockchain’s transformative power. This encounter convinced them of the technology’s potential.
Pall claims that they were able to see how an immutable blockchain ledger could allow for new interactions with fans and possibly solve the problem of secondary ticket sales. This problem has long been frustrating for musicians and fans alike. Scalpers (often using bots), often grab large blocks of tickets and then resell them at a high profit.
Bands can use NFTs to circumvent scalpers and ensure that their fans receive the resale proceeds.
The Chainsmokers, and other artists, are part of a growing group of people who recognize that blockchains offer a better alternative to traditional business models.
Blockchain-based record and distribution systems offer musicians a new way of communicating with their fans. They also provide the most reliable system yet to track royalties, which has been a long-standing problem in the music industry.
NFTs and other blockchain-based technology are not yet proven to be viable for the music industry. This is something The Chainsmokers quickly acknowledged. Taggart says, “Everyone’s still trying to figure this out.”
Web3 seems to be the future of the music industry, given the popularity of platforms such as Royal, which raised $55 Million.
The Chainsmokers will enjoy another win with the NFTs that are associated with their album. This is not only because they are musicians but also because of their business acumen. Other ventures of the duo include a successful brand tequila.
When asked how they got their entrepreneurial spirit, the pair cited Jimmy Buffett. They noted that Buffett has built a business empire by backing projects that fit his brand and personality.
Pall joked that Web3 ventures by the duo could be of benefit if Pall’s stage appeal declines. He said, “I’m not going look good in leather pants forever.”