With streaming platforms like Spotify, YouTube Music, and Apple Music dominating online music consumption, questions surrounding fan engagement, artist content ownership, and fair monetization are becoming more urgent than ever. The blockchain-based, decentralized music streaming platform Audius is emerging as an alternative.
On Day 1 of the recently concluded Solana Breakpoint event in Abu Dhabi, UAE, AltcoinDesk had the opportunity to speak with Audius CTO Ray Jacobson. In this candid interview, we explore how Audius is bridging the gap between artists and fans, the intersection of blockchain and music, the utility of the $AUDIO token, and more.
Offering a ‘lean-in’ music experience
In contrast to music streaming platforms like Spotify and YouTube Music, which primarily make the algorithm do the work of recommending music to the users, Audius is taking a more active or ‘lean-in’ approach, which entails fans choosing to engage with artists.
Audius’ approach is similar to that of other music platforms like SoundCloud and Bandcamp, which offer a more personalized experience to music enthusiasts, contrary to Spotify’s passive music listening experience.
Audius is bringing this personalized music experience and much more to the blockchain. Jacobson said that Audius has recently added several new features, including the Artist Coins.
What happens on Audius typically is, to bridge the gap between artists and fans, we’re giving fans the leveled-up experience on how to consume from their favorite artists.
Ray Jacobson, CTO, Audius
How does blockchain open new opportunities for artists?
Jacobson remarked that with the growing popularity of AI, over the last few years, the ease of creating content has shot up dramatically. As a result, new trends show that creators are increasingly choosing to reach out to fans directly a lot more.
Blockchain technology-based Audius can help eliminate the middleman between such creators and fans, as the platform’s infrastructure is fully community-owned, leaving no one to disintermediate artists’ relationship with their audience.
We’ve seen a lot of remix competitions on Audius. Those are represented by on-chain parameters, and the ability to remix tracks and manage the rights on-chain.
Ray Jacobson, CTO, Audius
What function does the AUDIO token serve?
When asked about the utility of Audius’ native AUDIO token, Jacobson states that it serves multiple purposes. The AUDIO token was launched in 2020 as a mechanism to align the incentives of the Audius community.
The Audius CTO noted that one can think about the platform’s infrastructure as that of the decentralized peer-to-peer file sharing platform, Filecoin. If people want to play music, they can go directly to the Audius network.
What AUDIO does is it governs and secures that network. In order to participate in that infrastructure hosting, you have to actually buy and stake AUDIO as a mechanism to ensure you’re promised to the ecosystem.
Ray Jacobson, CTO, Audius
He added that if someone stakes AUDIO tokens or runs a node, they can earn AUDIO tokens in rewards, similar to how many proof-of-stake (PoS) networks work.
Jacobson emphasized that there are two monetization models with the AUDIO token. First, you can purchase content with USDC on the Solana blockchain and 10% of these purchases are distributed back to the network in the form of AUDIO token.
Second, a portion of fee revenue generated through Artist Coins is captured in AUDIO as well.
AUDIO can also be used within Audius to gain access to features that exist within the ecosystem, including user-facing items such as badges, access to certain groups, and the ability to tip artists.
Competing with music giants while maintaining blockchain ethos
Jacobson stated that as of today, Audius does not aim to compete with the likes of Spotify because the music sharing model is gradually shifting, from streaming platforms, to more personalized and lean-in experiences like Patreon and other similar superfan platforms.
This was also a major reason behind the launch of Audius’ Artist Coin launchpad, as it allows artists to have complete control over their brand. It gives them the ability to distribute their own music, reach out to fans, and earn directly on the fees from fans purchasing and selling their assets.
Final thoughts and the path ahead
Audius recently launched Artist Coins with Florida-based rapper, Kodak Black, and Texas-based rapper Almighty Jay. Jacobson stated that Audius is the highest utility platform for creator coins that exists today.
He juxtaposed Audius with a Solana-based memecoin launchpad pump.fun, saying while the latter launches coins and tokens that are as degenerate as possible, Audius’ Artist Coin launches are geared toward building communities and rewarding fandom.
