Welcome to Ric’s regular musings looking at the current music industry, its challenges and overall why and how Daft Springer’s web3 platform works so well for the independent music industry. Written by Daft Springer Chairman, Ric Yerbury.
“Money, it’s a gas…” Well, apparently not to those who were sat with rapidly depleted wallets and trashed values. Understandably there was a wave of ‘told you so’s going around. I speak of course about the demise of Terra when its stablecoin, UST, slipped its peg to the $. For many this was clear evidence of the folly of attaching value to a digital currency with seemingly nothing to stand it up. Others claimed it was attacked. Who knows?
To give it full disclosure, this is what Terra said they were offering on their website:
‘Terra is a public blockchain protocol deploying a suite of algorithmic decentralized stablecoins which underpin a thriving ecosystem that brings Defi to the masses’.
Glad we got that clear. What exactly does that mean?
Well UST is a stablecoin which operates in a different way from others. It classifies itself as an ‘algorithmic’ stablecoin. It used a myriad of ‘smart contracts’ to keep the value as close to $1 as possible but with no physical reserves, it didn’t.
So, is this a gigantic case of the emperor’s new clothes? Possibly but many would disagree.
Whatever the explanation, the rapid decline in value of the Terra Luna coin has frightened many and called into question the role of cryptocurrency within wider business economies. For me, however, this is not so black and white. Stability issues in any new economy are to be expected but a reliance on thin air to prop up an economy is not. The technology that has been and is being developed is capable of much but not inventing sustainable money from nothing.
“Money, it’s a gas” was the opening headline. When I poached that line from Pink Floyd’s iconic track, I was more focussed on the imbalance with regard to moving crypto around and the gas fees attached rather than a poke at the pain of Terra Luna investors. Hardly a ‘gas’ for them and to be fair not for the wider web3, blockchain, and crypto community. However, there are definitely lessons being learned and some incredible brains looking to address them to ensure this new commerce progresses as it should.
Gas fees (transaction charges) for moving crypto is a current problem although this should eventually be resolved by upgrades to Ethereum, and as more blockchains come online less costly options are becoming available.
In the meantime, we remain committed to the delivery of sustainable solutions to our market and in particular to the newer and less established artists and their teams.
At Daft Springer, we are well underway with our plans to launch our own currency later this year and without revealing too much at this stage, revenue/assets are a key element of this to create a valued instrument with the ability to both accrue and sustain value.
Prior to this, we are close to launching our own NFT Factory with a significant twist to the current crop of NFTs being offered within the music industry. (If this is something you are interested in learning about ahead of the launch, do register here).
All of these developments are building on our proven ‘revshare’ deals, namely the ability to create deals around sharing in revenues. We believe this is a better way for any new artist, label, business, startup or otherwise to begin trading; as by agreeing to share across any/all revenues, you can negotiate a discount in upfront costs. Discount = de-risk and the opportunity to develop further. Cash is king, lack of cash is killer.
Anyone can get access to our contract factory which makes revshare deals for you in minutes and totally free of any charges. Interested? You can find these here.
Finally, I should add that I have been asked whether there is an opportunity to invest in Daft Springer. The answer is yes. We are mid-way through a funding round with both equity and tokens available. If this is something you want to learn more about, message me.
So until next time when we think more about: ‘Your money playing hide and seek’.
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