Introducing Decentralized Profit Sharing Contracts for Artists: Brought to you by Groovy.Finance
Groovy.Finance, the ERC20 token that brought you decentralized NFT's to put artists in control of their work and one-off vinyl for musicians, is taking another step in decentralizing the music industry. They are creating smart contracts that align with multi-sig wallets that will allow profits to be distributed fairly to groups of artists like musicians. The entire process of how Groovy.Finance's ecosystem will be described below.
Let's say that there are a group of artists. In this example we will use a musical act as an example. In our group, we have a lead vocalist, a guitarist, a drummer, an investor in the group along with a music producer. The group creates a record. It is sent to the Groovy mNFT minting contract. After its sent, the contract creates a digital master copy. It is securely recorded on the blockchain and profit shares of the record are clearly defined. In this case we will distribute profit as follows:
\- Lead Vocalist: 20%
\- Drummer, 20%
\- Producer: 10%
\- Guitarist: 20%
\- Investor: 30%
Because these guidelines are established, profit sharing from the artists will be automatically sent to the artists via the smart contract, ensuring profit sharing is handled decentrally to ensure equal and fair distribution based on the pre-determined profit sharing terms which are made by the group. Why is this is a big deal? What makes this important? Look no further to the story of Lou Perlman, who defrauded investors and stole millions of dollars from some of the biggest artists of all time like the Backstreet Boys and NSYNC. Taylor Swift has been fighting for the legal rights to her masters from fellow producers and record labels, Decentralizing the music industry is the first step in the right direction in terms of ensuring artists are fairly compensated for their work instead of being caught in the grasp of record labels and ma...