Euterpe: Bringing music IP into the Web3 world

Web3 is on fire. Whether it is the web2 Internet or Crypto, they are all looking for different web3 implementation paths, and the experimenters have also achieved an obvious consistency in their goals: returning user data ownership and related rights and interests.

This also means that many industries and platforms in the traditional Internet also need to undergo web3 transformation and become a new industrial structure or platform structure.

Among these industries that need to change, the music IP industry is one of the important players, and it may become a model case of industrial change in the future. In this article, we will take Euterpe as an example to show how blockchain technology and web3 concepts can transform the music IP industry.

Music IP is the core of the entire music industry. Relying on the creation, production, distribution, marketing, payment flow, derivatives and other processes involved in the entire life cycle of music IP, the music industry has formed a huge structure.

In this huge structure, there are many loopholes due to the problem of role collaboration, and these loopholes are all around the extension of copyright circulation and income. Euterpe uses the technical characteristics of the blockchain to solve the copyright circulation and income issues of the blockchain as the core, and then builds a new music IP platform supply chain system on the platform.

IP NFT as a Service with SocialFi

The Euterpe team is well aware of the disadvantages of the huge music industry.

First, creative works such as music and movies have traditionally involved complex licensing transactions and high transaction costs in the copyright market. What's even more pity is that for every dollar consumers pay for IP, creators may only receive less than 15 cents, not only the rest of the money becomes other costs. Payments for these royalties may also arrive two years after the user makes the payment.

These problems reflect the immature problems of industry collaboration and rights distribution mechanism. In the final analysis, the industry chain is inefficient.

Therefore, Euterpe proposed a blockchain copyright transaction platform to improve the efficiency and accuracy of copyright transactions by encoding thousands of copyright rules and licensing terms in blockchain-based smart contracts. Based on Euterpe's platform, creators can earn 16 times the royalties on a per-stream payment than Spotify and 80 times that of YouTube. And creators can realize instant payment.

Relying on the characteristics of the blockchain, Euterpe also allows creators to sell the copyright of works to fans, and fans can directly invest in works in exchange for copyright shares presented in the form of NFT. In terms of ecological flow, through the distribution and promotion of works authorized by SocialFi, Euterpe can mobilize users to assist distribution and promotion to mine more EUT tokens, and cultivate another healthy ecosystem with additional incentives between creators and users .

Euterpe's Responsibilities and Capabilities

As creator of the platform, Euterpe has many responsibilities.

From the perspective of the platform, Euterpe uses the smart contract of the blockchain to realize the certification of copyright, and uses NFT as the representative of copyright to open up the ecology of the chain and the chain, and in the context of the operation of smart contracts, establish legal contracts and Corresponding legal resources to support the operation of smart contracts in real life, to achieve the same effect as legal contracts.

The second is to have detailed solutions for each type of copyright, the royalty income under each application scenario, how to collect it, who to collect it from, how much to collect, etc.

Overall, Euterpe aims to create a one-stop solution for the entire industry chain from copyright confirmation, to copyright authorization, transaction, transfer and subsequent dispute resolution.

And these are mainly realized through the integration of API and smart contracts. That is to use the advantages of blockchain technology to allow the traditional music market to accept NFT and blockchain technology. Euterpe needs to make a lot of arrangements for this.

The Euterpe team introduced its landing plan to the author in detail.

The Euterpe team believes that copyright works, including music, movies, etc., are naturally combined with the blockchain. Unlike other tangible properties such as houses or cars, these intellectual property rights can exist completely through digitization, which is convenient for Internet transfer and transactions.

Copyright landed on the blockchain, Euterpe has three main conditions:

1. Copyright, as a unique intellectual property, involves complex legal rules, transaction processes, and industrial practices. Euterpe has professional reserves in intellectual property, and sorts out complicated and realistic rules into smart contracts that operate efficiently.

2. Copyright blockchain projects must be combined with copyright industries such as music and movies, and have the ability to mobilize rich industrial resources, so that excellent artists and works can be quickly gathered to form a benign creative ecology. This requires more practitioners with copyright and legal capabilities in the NFT industry to participate, and work with technical teams and product teams to integrate these parts to provide real value for both copyright owners and users.

Euterpe's team is full of senior people from the copyright industry, and they also expressed that they will pay special attention to the contribution and return of ecological partners, and will uphold this attitude and philosophy for a long time.

3. The source of music IP is the creator. Euterpe attracts a large number of popular and high-quality copyright owners and musicians through the positioning of high-quality IP NFT, manages and protects IP, and uses the built-in SocialFi mechanism of the system to enable The registered musicians will gain new publicity capabilities. Through IP NFT tokenization and supporting auctions and transactions, copyright owners can obtain new financing channels.

Innovating in a web3 world

Euterpe can use blockchain to solve the problems of the music industry technically. In terms of model, it can adopt B2C, build a moat for the platform, and build an industrial platform with a market value of tens of billions steadily.

Although this is an extremely clear traditional path, after relying on the blockchain to enter the web3 world and using multiple ways of playing, Euterpe can show more vitality.

First of all, in terms of NFT design, Euterpe designed two kinds of NFT. The creator will generate 1 diamond NFT for each work created, representing 50.1% of the copyright of the work, and there will be another 499 gold NFTs, representing 49.9% of the work copyright. Such a design can realize the decentralization of the copyright of works through gold NFT, which reduces the difficulty and risk of investment, and the value of the work itself can form an NFT trading market through the performance of fragmented NFT, which provides a great opportunity for the realization of the value represented by NFT. fluidity.

Secondly, Euterpe uses tokens to motivate users to form platform potential. After analyzing the purpose, feasibility and scientificity of its token system design, Euterpe formulated the following token economic model:

Payment: Auctions, transactions, royalties of platform NFT and Gas of SocialFi are all completed by tokens;

SocialFi: tokens as rewards for SocialFi;

Pledge: Tokens can be pledged to obtain pledge rewards;

Governance: Tokens can be used to participate in voting for works.

In the entire economic model, the purpose of SocialFi is mainly to shape a closed-loop path and realize rotation.

Under this function, Euterpe users can participate in the ecology by playing, sharing, and voting. The royalties generated in this process will be distributed to copyright owners and NFT investors through smart contracts. This represents the profitability of the platform's internal ecology.

The IP of the entire platform can also realize the export of derivatives. Euterpe will gradually transfer the royalties generated by the streaming media platform, offline bars, nightclubs, shopping malls, KTV, etc. to the contract through various methods such as API access. This represents the profit of the external ecology of the platform.

future and present

After the smooth transformation and development of the industry platform, the end result of Euterpe is a whole industry chain, in which there will be investors, copyright owners, creators, and fans. And each role will get the target value in the platform.

Copyright owners and creators: traditional streaming media platforms greatly limit the value of copyright works, Euterpe provides copyright owners with higher income per stream, copyright income distribution at the speed of light, fair and transparent. Release the hijacking of creators who are highly dependent on the investment and publicity channels of record companies, so that creators can 100% control the value distribution of their works.

Investors: Investment in the traditional copyright industry requires huge funds and there are huge risks. Euterpe disperses investment risks through copyright NFT fragmentation, lowers the threshold, and maximizes the value of copyright development.

Fans: In the traditional copyright industry, fans, as end users and creators, are separated by layers of intermediaries. Euterpe maximizes the removal of intermediary links, allowing fans to directly support their favorite creators. Euterpe regards fans' broadcasting, promotion and voting behaviors as contributions to the community. According to fans' contributions, corresponding token rewards are given to fans, so that fans can get rich benefits from their own artistic taste while enjoying wonderful works. From a business relationship to a co-prosperity relationship.

Representing music IP through NFT is a redefinition of data assets, and this method is also applicable to more types of IP assets, which also means that "music IP may only be the starting point of Euterpe", as the Euterpe team said , "Amazon focused on books at the beginning of its establishment, but eventually developed into an everything store in the web 2 era. Our long-term vision will also be to create an everything store in the web 3 era."

In order to achieve this goal, in the rapidly developing open world, Euterpe will start with music IP, and then gradually expand to video, books, games, offline concerts, celebrity peripherals, and other IP types such as patents and trademarks etc., and will eventually be extended to the broad application scenarios of the entire digital native assets and reality-mapped assets in the Metaverse.

Finally, the author learned about the recent progress and plans of Euterpe. In terms of product distribution, in the second quarter of 2022, Euterpe will officially launch music IP products, and the Alpha version test is currently underway. In terms of platform IP, it has reached cooperation with more than 30 record companies. The first batch of big singers to be launched exceeds 20, with thousands of copyright reserves.

In terms of external market planning, Euterpe will start with the Asia-Pacific region, and has deployed localized community operation channels in Hong Kong, Malaysia, South Korea, Vietnam and other places. It will also establish an NFT platform in Hong Kong with its strategic partner Hong Kong Financial Assets Exchange in the near future , Carry out all-round cooperation in traffic, IP, license, compliance and other aspects.

Looking up at the stars and keeping our feet on the ground, the vision of web3 is far away, but the changes that Euterpe brings to the music industry are very close.