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Helping musicians through turmoil: Audius Spotify alternative airdrops $8 million of tokens to its creators

Helping musicians through turmoil: Audius Spotify alternative airdrops $8 million of tokens to its creators

Quick take

1 minute read

  • Over the course of 2020, people from all over the world have experienced hardship brought onto the pandemic and the economic turmoil that’s followed. 
  • Musicians and artists in the creative industry have specifically been hit hard due to the lack of being able to play the music live and essentially, earn a living.

Over the course of 2020, people from all over the world have experienced hardship brought onto the pandemic and the economic turmoil that’s followed. 

Musicians and artists in the creative industry have specifically been hit hard due to the lack of being able to play the music live and essentially, earn a living.

One of the main ways that musicians and artists can make it even though is through Spotify. Spotify gives these people a platform to release the music to the world and even though it isn’t a stable income, for bigger artists it can result in a nice paycheque at the end of the month.

Audius, a competitor to Spotify has just distributed 50 million of its native AUDIO tokens to artists using the platform. This distribution came alongside the launch of the AUDIO governance token on the mainnet for the platform. 5% of the token's initial 1 billion supply distributed to its top 10,000 fans and artists.

Currently, the native token only has two uses which can allow holders to access an exclusive channel on discord and can be staked with 1.4 million AUDIO currently locked up.

In what is great news for musicians and artists, the algorithm that determined the distribution of the token heavily favoured the creators rather than the listeners. 75% of the issued token allocated to creators was based on the number of streams that they generated.

The token supply is set to inflate by 7% on an annual basis for future distributions to its user base.

Interestingly, the Spotify competitor criticised the existing dominance structures in the music industry in its white paper. It even claimed to look at leveraging blockchain technology which would help a reward to content creators as well as increasing the transparency on payouts to different artists and musicians.

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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