1. Development background of NFT
With the outbreak of COVID-19, the traditional art industry is undergoing a revolution spurred on with the increasing adoption of NFTs. (Non-fungible tokens)
The pace of innovation in the past few months in web3 has been exponential: Layer 1 chains have been attracting billions of dollars in Total Value Locked, Layer 2 solutions are scaling rapidly,and NFT sales have been breaking records.
We are now seeing waves of brilliant, creative people building their creative endeavors on top of blockchains that are disrupting industries and reaching mainstream adoption.
DeFi was the first wave of blockchain killer apps that broke out about 18 months ago, followed by NFTs and crypto gaming experiences this year. What comes next is hard to predict, but NFTs are likely to have an enormous impact on the adoption of web3 products.
In the world of NFT, there is a growing community of visual creators and artists who mint NFT through blockchain technology - combining art and blockchain technology, which not only unlocks characteristics of uniqueness and scarcity for the artwork, but also increases their collection value.
As the proliferation of NFTs continues, the active participants will trickle down from crypto native users to generalist creators like artists, stars, and singers,
In fact, the rise of NFT is not an incident, but an inevitable result of industry development.
In the traditional art industry, most creators usually release their works with gatekeepers (publishers, record labels, editing houses) which constrains talent. These gatekeepers will sell the IP copyright to big companies to collect copyright fees.
In the whole process, the artist only receives a sliver of the revenue generated, but also has to suffer a long period of waiting time as they are working hard to monetize their IP.
Usually their art is publishedon n platforms like YouTube, Instagram, Spotify and Tiktok to acquire new users.
These sites are ultimately ad engines that host content, and because of this, have certain rules and regulations in place where the corporation decides on whether their content is good enough to be published or not.
This also means that content from creators can get demonetized at any time and there is also the chance of these platforms closing the creator’s business - ultimately putting the creators at the mercy of these corporations. The creator economy is huge at a $100-$120B TAM.
The architecture of the creator economy is built for gatekeepers, and at Euterpe, we are shifting from advertising to digital commerce.
In the music industry, songwriters makes 10% of revenue and the artist receives < 8% of revenue because the lion share of it goes to the gatekeepers: record labels and music publishers who capture the value.
In fact, 97% of YouTube creators aren't making minimum wage on YouTube and being in the top 3.5% of YouTube channels, which means about 10 Billion views each month only gets you $12,000 to $16,000 a year, which is right around the federal poverty line.
The emergence of NFT is a good solution to this problem.
Creators mint NFT by themselves to reduce intermediate links in the process and increase their overall income. At the same time, they can more clearly understand fans' preferences and form effective interaction with fans. At present, artwork, PFP (Profile PIC) and other applications in NFT are particularly prominent, while the music NFT industry is still relatively young.
2. Innovation Platform of NFT -- Euterpe
Euterpe is the world's first IP-powered NFT trading platform with SocialFi, pioneering 'IP-powered NFT as a Service'. NFT combined with IP has become the entry point for Euterpe to enter into the Metaverse. It starts with music copyright first, and the project will be applied to the broader copyright fields in the future including video, games, books, concerts and physical assets .
At Euterpe, we started with music because the music NFT track is not yet fully developed and the Euterpe team has a lot of experience in this area. The team is led by seasoned professionals with expertise in technical blockchain implementation, legal, copyright and go-to-market experiences. In addition, Euterpe also possesses rich industry resources and insights through key partnerships with creative talent agencies and media platforms.
Euterpe is a B2C platform model based on the auction model that won the Nobel Prize in Economics in 2020.
The first implementation is a market for digital assets with real IP allowing users to purchase high-quality pieces. It can greatly enhance the user and investors’ experience, while avoiding the risks of copyright infringement or fraud that are common today.
Specifically, the copyright owner uploads the content to Euterpe platform, and Euterpe will tokenize the copyright of the content for the copyright owner and mint the asset into NFT.
The copyright owner may decide to auction part or all of the copyright NFT through the Platform's Nobel Prize auction model,. Investors can participate in auction transactions by the platform's primary market and platform's secondary market. Fans will receive tokens by playing, sharing, and voting. They could also participate in SocialFi ecosystem mining.
3. Project Advantages of Euterpe. We are:
a. A NFT platform that marries entertainment and trading. Unlike most platforms in the market, which only have the single function of trading or streaming media, Euterpe not only Not only will users be able to trade online in real time, but they will also be able to participate in Euterpe’s SocialFi'experience, earning token rewards through actions such as playing, sharing and voting.
b. An opportunity to provide copywrite owners and artists stable income for . Euterpe offers copyrights holders 16 times more royalty per click than Spotify and 80 times more than YouTube. To provide fast and efficient financing channels for copyright owners based on NFT. Provide a SocialFi-based community promotion mechanism for copyright holders.
c. A unique auction model. Instead of the usual British or Dutch auctions, Euterpe uses the Vickrey auction model, developed b at Stanford Graduate School of Business, which has won Nobel Prize in the past. Through the Vickrey auction model, it is possible to achieve a price more in line with the value of the item.
d. A Unique NFT design. At present, most NFTs on the market can be summarized as 'Copy NFT'. When users buy an NFT, the platform does not hand over the copyright to them. They only get a limited copy of the work, and the rights are still in the hands of the original copyright owner.
The Euterpe team believes that the real value is in copyright. Euterpe tokenizes the copyright itself to create 'Copyright NFT'. Investors can obtain the Copyright by buying a portion of the NFT, so that the value of NFT can be truly realized. Different from 'Copy NFT', copyright NFT holders can not only enjoy the future stream of revenue as a dividend brought by the ownership of the copyright, but also get continuous royalties through copyright, and the copyrighted contents can also carry out subsequent commercial development, which are huge income sources.
E. we built our marketplace with SocialFi first. Euterpe changes fans from passive consumers to active stakeholders, enabling them to get token rewards through broadcasting, sharing, voting and other contributions to the copyright works and the community, and share the financial income of the works, completely changing the original capital-centered copyright system. Artists who bring their own traffic are extremely effective promoters. By virtue of the star effect, they can help their works gain traffic and earn considerable income on the platform. This innovative measure turns the profit ecosystem of 'only capital' into that everyone can gain benefits through sweat equity, and truly converts contribution into support for works, which is a huge innovation in Euterpe model.
Euterpe now has more than 30 record companies on its roster, with the first batch of 30 major artists slated for release in Alpha Version. Euterpe copyright team also has rich resources in artist reserve. The Chief Content Officer successively served as the copyright Director of SONY Music China, one of the three major international record companies, and the commercial director of CAA China, which is the largest international artist agency organization. As a result, Euterpe has signed, managed and cooperated with a large number of head musicians. The CCO of Euterpe has also served as copyright director of ByteDance and Chinese Language director of Tencent Music Entertainment, where he was responsible for copyright acquisition and management of the two digital music platforms.
4. Conclusion
Some people take a long-term view and believe that NFT and blockchain technology aims to solve the problem of intellectual property protection by publicizing the information of work released. In other words, it could reconstruct fair and reasonable market rules, which has broad application prospects. Others see NFT as the hot area of the year. Many institutions are only interested in NFT because it makes money.
Euterpe's biggest strengths are its team background and a large portfolio of high-quality IP. The combination of NFT and IP is becoming a new popular trend, attracting more and more excellent creators to participate in the field of NFT. Euterpe also brings a new model to the IP industry, making copyright management more transparent. It solves the problem of digital rights ownership and creates a new revenue stream for creators. IP NFT can’t copy the ways of art market completely, but it has to take an innovative road in line with the needs of the industry, so that users will make consumption. Everything from digital collectibles to the social element of the 'meta-universe' seemed possible before it was overthrown. Innovation has only just begun, and we will see the precious projects only after the tide goes out.
