You were probably awe-struck last week when Davido began a call for a donation for his birthday. If you weren’t, or you probably don’t know the full details of what happened, let’s wind back the tide of time. Last week Wednesday, November 17th, David Adeleke (aka Davido) playfully called on his friends, well-wishers and associates to donate 1 Million Naira each into his Wema bank account. He stated that he hoped to make 100 Million Naira in total to clear his Rolls Royce from port to celebrate his 29th birthday.
Like a bee to honey, his friends swarmed around him and began to make donations which totalled 200 hundred million Naira. In his appreciation post, Davido stated that the action arose playfully and he had no intention of raising such a huge amount. He later announced that the money raised, with the addition of 50 Million Naira from his pocket, will be distributed to all Orphanages in Nigeria. This article delves into how Davido’s action will pave a new way in the music industry through the mechanics of NFTs.
What are NFTs?
Let’s assume you buy a phone, laptop, or any other electronics or object, you get a receipt that vests the ownership of the object in you, that is, it belongs to you. You can only transfer the ownership of the object to another by giving the object and its receipt to the other person. Thus, anyone with the object and receipt owns it. Consider this as NFT 101 because it is the easiest way to explain NFT.
Non-Fungible Tokens (NFTs) are digital methods of proving ownership of assets that are either physical or digital. The object can be a piece of artwork, music, or design with a certificate of authenticity and history of ownership (consider this as the receipt in the above analysis). NFTs use blockchain technology to record and track ownership making it secure for the purpose. Almost anything can e sold as NFTs in millions of Dollars. A tweet can be given an NFT and sold as the same. A right to music or picture can be sold. This brings us to how Davido’s action can create a new lane for Nigerian artists in NFT.
How Davido’s action can impact the growth of NFT in the music industry
As stated earlier, music remains one of the assets that can be sold as NFT. No doubt, those that donated money for Davido did it out of their free will. However, to show his appreciation by releasing an album, exclusively for those that donated to him. He may decide to issue a certificate of original ownership to these categories of people. Such action qualifies as NFT as the ‘certificate of original ownership’ will have an intrinsic value that may rise and fall and can be sold by holders later. Since music can be sold as NFT, a musician may create an album, with a limited edition of the album which will be sold to a certain number of people at a fixed price. These people, in turn, get a certificate of ownership which is kept securely on the blockchain network. The popularity of the artist as time goes on will determine the value of the certificate and holders can sell at high prices. With this innovation, the activities of directors and music promoters are eliminated and musicians tend to earn more. This is the future of the music industry as well as other forms of content creation.
Selling music as NFTs doesn’t mean that it won’t be available online for streaming, however, the feeling of ownership resides with certificate holders.
The sale of music as NFTs is not new to the music industry. Kings of Leon and Steve Aboki have sold NFTs for millions of Dollars. Even unpopular artists like Zack Fox have made thousands of Dollars selling NFTs. Young and Sick, had just 27.000 followers on Instagram when he sold an NFT for $865,000