Research Report: GALA MUSIC——The path of exploration of decentralized music platform

Author: EdisonHuu, Source: Gryphsis Academy

The languages ​​of various countries in the world are not accessible, but music can impress all listeners through its melody can resonate. Music is the common language of mankind and the common wealth of mankind. After Gryhsis analyzed the music track in the previous article, this research report will analyze Gala Music.

Project introduction

Gala Music is a decentralized music platform built using blockchain technology, which allows music artists to enhance their control over music and increase the transparency of the industry chain. Fans can have closer contact and connection with music artists.  

Gala Music is an important part of the Gala ecosystem, and together with Gala Games and Gala Movies, it forms the cornerstone of the Gala ecosystem.

Team information

Gala's core team has been introduced in our previous research report on Gala.

Gala Music CEO is Leila Steinberg, a former marketer at Atlantic Records, Sony, Def Jam, Tommy Boy, Interscope and Relativity. Her other identity may be better known to everyone - the artist mentor and first manager of the legendary American rapper 2PAC. 2PAC is a legendary existence not only in the Hip-Hop circle, but also in the United States and even around the world. He is Widely considered one of the most influential and successful rappers of all time.

(legendary rapper Tupac)

Financing status

Financing status span>

Like Gala Games, Gala Music did not disclose the financing. It is also stated in our Gala Games research report that perhaps due to US regulatory pressure, Gala Music also uses node sales as a disguised financing.

Operational logic

Gala Music platform There are 4 basic roles on:

1. Artist

Artists are the core of the Gala Music ecosystem. Currently, Gala Music has listed 93 artists on its official website, including rapper Snoop Dogg, who has cooperated deeply with Gala Music. They create and publish music NFT works on the platform, and earn income through multiple methods such as selling NFT and selling peripheral goods in the All Access store.

2. NFT owner

By purchasing a song NFT, you become the owner of the song, which can also be called NFT. Holder. The song owner needs to host the NFT on a node to earn $MUSIC.

3. Node operator

You can become a node operator by purchasing nodes on the Gala Music platform. The current node price is 11,704 $MUSIC, based on $MUSIC’s current market price, is approximately $2,000. The node has a 20 hour uptime requirement and can currently host 10 tracks, with the option to increase the number of hosted tracks later using $MUSIC.

4. Fans

Fans can listen to their favorite artists’ songs for free and earn $ by listening to them MUSIC allows you to purchase artist peripherals, albums, concert tickets, etc., and is the main consumer group in the Gala Music ecosystem.

Token

$MUSIC is Gala Music The core token in the ecosystem has been officially given extremely powerful empowerment. $MUSIC is mainly used to purchase music NFTs, purchase artist-related peripherals and node purchases in the All Access store. In addition, it can also be used to upgrade node hosting tracks and be used to incentivize the ecosystem.

$MUSIC has a maximum supply of 1 billion and an initial circulation of 150 million. The initial 75 million $MUSIC tokens were derived from test tokens, and the same number of 75 million $MUSIC tokens were also officially minted and given to ecosystem operators for ecosystem partners and platform participation activities, including platform development, its functions and related products.

$MUSIC tokens will follow a dynamic supply governed by a mathematical formula similar to a glue curve, where the creation (minting) of new music is analogized to ecosystem parameters, which depend on ecosystem activity parameters input of.

It is designed to ensure that the supply of $MUSIC is proportional to platform growth and the increase in token utility, mitigating oversupply and undersupply that may occur in a fixed supply plan. By tracking the amount of music produced on the platform on the blockchain, it ensures a transparent and true measurement of demand, growth and expansion.

The graph below calculates the amount of Mint stipends generated due to the minting of new tracks. This graph shows the $MUSIC stipend generated by minting 100 music. This system ensures that the token supply only increases when the utility of the token increases. .

$MUSIC is burned through token utility (such as purchasing in the All Access store) and other ecosystem-related functions (such as STGE tipping), reducing the circulating supply of $MUSIC and Mint earned from ecosystem activities The subsidy will increase, and this reciprocal minting and burning mechanism ensures the sustainable operation of the ecosystem.

Mint subsidy pool is the initial circulation of $MUSIC. $MUSIC releases 0.15% of the Mint subsidy pool (150 million coins) every day, of which 50% Obtained by the project party, the remaining 50% will be allocated by Jukebox (node) 35%, the ecosystem will allocate 25%, the music NFT owner will allocate 25%, the artist will allocate 10%, and the founder node will allocate 5%

Source: Scopescan

According to Scopescan data, the picture shows the top ten currency holding addresses of $MUSIC, accounting for 56.01% of the total amount of $MUSIC (35,385,689 Music). The top 50 currency holding addresses account for 72.88% of the total amount of $MUSIC. The top 100 currency-holding addresses account for 80.99% of the total $MUSIC, and the concentration of chips is extremely high. The second currency holding address is the Huobi exchange address, and the $MUSIC holdings of major exchanges account for approximately 45% of the total.

Source: Nansen

According to Nansen data, the top large currency holders have been buying in the past 7 days and the past 30 days $MUSIC, there are fewer sellers, which shows that large investors have continued to accumulate chips.

Advantages

This section was in our previous research report on the music industry Mentioned in detail, it is summarized in the following points:

• Transparent and Decentralized copyright management:

  Blockchain technology allows music copyright to be accurately tracked and managed, ensuring that creators can accurately receive income from the results of their creations. This provides music creators with greater trust and transparency.

• Automation of smart contracts:

  The application of smart contracts automates royalty payments, reduces intermediate links, and allows creators to get their rewards more quickly. Such a mechanism not only speeds up payment, but also improves the efficiency of copyright distribution.

• The promotion of creator economy:

  Web3 music provides a new impetus for the creator economy, emphasizing the independence and creativity of individual creators. Creators realize economic value through unique content, works or services and gain more autonomy and economic opportunities.

• Tightly connected creator-fan relationship:

  Web3 music brings upstream creators closer to downstream fans and listeners. Fans can interact more closely with creators, provide demands and suggestions, and creators can better understand audience needs, thereby creating more popular works.

• Innovative music service model:

  Music works based on NFT are not only "listening value", but also tradable and composable. Through online shopping malls, artist peripheral sales and other forms, new music service models and scenarios can be derived, bringing more business opportunities to the music industry.

Based on these advantages, Web3 Music is expected to bring a more fair, transparent, automated and innovative development direction to the music industry, and provide Music creators and fans create a better ecosystem.

Web3 music track, we can also call it MusicFi, with projects led by Audius and other projects that performed well in the last bull market, $AUDIO The highest market value even reached 5 billion US dollars. Today, $MUSIC is the most promising project to lead the next wave of MusicFi craze. Let’s take a look at what $MUSIC’s highlights are.

• Backed by Gala:

  Gala Games' success in the last bull market is obvious. We can fully believe in the marketing capabilities of the Gala team. As one of the pillars of the Gala ecosystem, $MUSIC replicates $Gala's The trend is not impossible.

• Top signings:

  Snoop Dogg is Gala Music’s long-term partner. Snoop Dogg, also known as Dog Lord, is a very well-known presence not only in the hip-hop music circle, but also throughout the United States and the world. First of all, Snoop Dogg serves as the face of Gala Music and can provide Gala with Music’s higher market recognition

• Quality team:

  When introducing the team above, we mentioned that Gala Music’s CEO was 2PAC’s first manager. We can imagine his connections in the hip-hop music circle and how Gala Music will expand with more well-known singers in the future. Cooperation has laid an extremely solid foundation

• Newly issued token: $MUSIC is a newly issued token on the Web3 music track. Compared with other targets in this track, the market value is lower, only about 13 million US dollars. It has not experienced a bull market, unlike $AUDIO. With more hold-ups and selling pressure, we expect $MUSIC to perform better in this bull market.

Risk

Although Gala Music has set up a mechanism to alleviate oversupply and undersupply in the ecosystem , but the core of the platform’s survival and development is still the purchasing power of artist fans’ $MUSIC, which is the demand part of the ecosystem. Once demand drops sharply, no matter how the mechanism is adjusted, it will be impossible to avoid a drop in token prices (oversupply).

The platform needs to constantly supervise and improve the quality of platform music and sign and cooperate with more popular Web2 artists to bring Web2 traffic to Gala Music and increase Empower $MUSIC to ensure sufficient token demand.

Summary

Web3 music shows multiple advantages over traditional music such as transparent, decentralized copyright management, smart contract automation, economic promotion of creators, close relationship between creators and fans, and innovative music service models. This brings a more fair, transparent, automated and innovative direction to the music industry, improving the ecological experience of creators and fans.

Gala Music, as a representative of Web3 music, is backed by Gala Games, signed with top figures such as Snoop Dogg, has a high-quality team, and newly issued tokens. Obvious advantages. It looks forward to leading the next wave of craze in the Web3 music track, especially through cooperation with well-known artists and the characteristics of newly issued tokens, which is expected to achieve better performance in the bull market.

However, project risks also need to be noted. Although Gala Music adopts a supply and demand mechanism to alleviate the imbalance of the ecosystem, it still relies on the purchasing power of artist fans for $MUSIC. If demand drops, token prices may be affected. Therefore, the platform needs to continuously improve the quality of music, sign contracts with popular Web2 artists, introduce their traffic to Gala Music, and strengthen the empowerment of $MUSIC to ensure sufficient token demand to maintain the ecological balance of the platform.

Statement

This report is an original work completed by @EdisonHuu, a student of @GryphsisAcademy, under the guidance of instructor @CryptoScott_ETH. The authors are solely responsible for all content, which does not necessarily reflect the views of Gryphsis Academy, nor the views of the organization that commissioned the report. Editorial content and decisions are not influenced by readers. Please be aware that the author may own the cryptocurrencies mentioned in this report. This document is for informational purposes only and should not be relied upon for investment decisions. It is strongly recommended that you conduct your own research and consult with an unbiased financial, tax or legal advisor before making any investment decisions. Remember, the past performance of any asset does not guarantee future returns.