Listen-To-Earn: How Web3 Can Change the Music Industry

Abstract

Web3’s current applications mostly revolve around financial systems; yield farming, lending and borrowing, token swaps, bridges, and many more. Applications with social features in mind have started to take light, as well as more incentives for creators to join Web3. This paper aims to explain an idea involving listen-to-earn mechanics, the concept that users could be compensated for their time listening to music. I explain how artists could benefit significantly from this mechanic if implemented correctly. I also analyze how a platform like this can change the music industry and bring more mainstream attention to Web3, thus increasing users. I detail some paths to success and sustainability for a project such as this, as well as some potential issues I see. Benefits and incentives for artists and content creators using Web3’s technologies, such as DAOs and NFTs, are also explained in this paper. I explain the potential implications that Web3 could bring to the music industry and how artists and content creators can have better, more engaging communities while also being paid much more than they were using Web2’s platforms. These findings alleviate the misconceptions that Web3’s technologies will hurt content creators and show a path towards sustainability in the music industry.

Keywords: Web3, DAO, NFTs, music, artists, advertisements, creators, listen-to-earn, content, compensation, music streaming, audio

JEL Classification: M13, M21, M37, M31, M52, Z11