On STOI, owners of the tokens representing the song earn passive income from streams, licensing, and more.
- DMC x STOI
- Disrupting the Music Industry
DMC x STOI
Ever heard of Run-D.M.C? If not, they are hailed as one of the most influential hip-hop groups of all time. Now, one of the founding artists behind the group, known as DMC, real name Darryl McDaniels, has released a song today on the new Algorand protocol STOI (The Song That Owns Itself).
The song was released today as Algorand and STOI host an event at the famous South-by-Southwest festival, held this week in Austin, Texas. Algorand’s presence at the event is meant for attendees to “experience the future of music, gaming, art, and finance.”
☀️ Gm. It’s a beautiful day in Austin, TX at @sxsw to announce STOI #3. Come say hello at the @algorand #Algoranch where we’ll reveal the legendary artist behind our third curated STOI. #AlgorandATX #SXSW #Algofam https://t.co/Y7RQqPyGJu
— The Song That Owns Itself (@stoidotorg) March 14, 2022
The new song, called “Million Scars”, is currently being airdropped to those that opt-in with an Algorand Wallet. What this means is that for each song, a smart contract is deployed, which “allows artists, collaborators, and fans to share ownership in a song and its future earnings.”
This song will be the third released on STOI, the second being Grammy-nominated artist Superposition and Jesse Boykins III. DMC spoke on his decision to release his music via STOI, saying:
“Releasing a STOI today is the first step in launching my DMC (Decentralized Media Company) with the larger goal of creating the next iteration of the music industry that values creators, fans, and supports them all in the most transparent and fair way possible.”
Disrupting the Music Industry
STOI is trying to disrupt the music industry through tokenization, decentralization, smart contracts, and DAOs. The project is backed by George Howard, who has a long list of accomplishments in the music industry and currently teaches at Ivy League University, Brown. He is also an advisor to Algorand.
The smart contract generates a fixed number of tokens for each song, representing a financial stake in the song. For example, if there are 100 tokens for a song and you have 19, you are a 19% owner.
When the song streams, is licensed and otherwise generates revenue, holders of the tokens will accrue value straight to their Algorand wallet. Ownership also grants “voting power to govern key decisions about the Song.”
When you own tokens representing ownership in the song, you become part of a “micro-DAO”, as the STOI website puts it, “kind of like a percentage of your ownership structure of an LLC agreement on the blockchain.” These tokens can be sold and traded on OpenSea, or within the DAO itself.
This type of fractionalized ownership via NFTs is one of the most powerful uses of crypto and blockchain. In this case. it empowers creators to engage directly with their fans, take back control of their work, and allows fans to have an actual stake in the work that the artist creates.
This release is a big step for Algorand, and the creator economy in general, proving that blockchain has use cases that go far beyond speculation and hollow promises of “world-changing tech.” Anyone can create a STOI right now here.
— George Howard (@gah650) March 14, 2022
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