Lack of Transparency in Revenue Distribution
Current Situation Analysis
In today’s music industry, revenue distribution has long been plagued by a lack of transparency and fairness. Although the functional music market is rapidly growing as a niche segment, existing platforms fail to effectively protect creators' rights through their business models and distribution mechanisms. The key issues include:
Platforms Dominate, Creators Earn Less
Music streaming platforms often adopt high-percentage revenue-sharing models, where the platform retains the majority of the income, leaving creators with minimal direct earnings. Functional music creators, in particular, face limited audiences and occupy a disadvantaged position in the income chain.
Lack of Transparent Distribution Mechanisms
In traditional systems, the process of revenue distribution is often opaque and overly complex. Creators typically have no way to track how many times their work has been streamed or the sources of their earnings. This lack of transparency can lead to manipulated data and unfair practices.
Passive Creation, Limited Sustainability
Due to insufficient earnings, many creators struggle to dedicate more time and effort to producing functional music. This leads to a vicious cycle, as the functional music market relies heavily on constant updates and improvements to content, yet the current distribution model fails to incentivize high-quality output.
Excessive Intermediary Costs
The music industry’s revenue chain involves numerous intermediaries, including agents, distributors, and copyright management organizations. These intermediaries claim a significant portion of the revenue, further reducing creators' actual earnings.
ZenWaves’ Innovative Solutions
ZenWaves addresses these pain points by leveraging blockchain and smart contract technology to build a transparent, fair, and efficient revenue distribution system. This ensures creators receive a larger share of the revenue while encouraging more people to contribute to functional music creation.
Transparency Guaranteed by Smart Contracts
ZenWaves uses blockchain technology to record music play counts and revenue distribution. Each transaction’s source and allocation details are automatically executed and stored on the blockchain through smart contracts. Creators can track their work’s performance and earnings in real time, ensuring complete transparency in the distribution process.
Decentralized Revenue Model
Through its decentralized autonomous organization (DAO), ZenWaves empowers creators, users, and the platform to participate in revenue-sharing decisions. Revenue proportions for creators’ work are determined by community votes, ensuring the distribution model aligns with the majority’s interests.
Revenue Pool Distribution Mechanism
ZenWaves establishes a revenue pool, where distribution is based on play counts:
80% to Creators: Regardless of how many times their music is played, creators receive earnings proportionate to their contributions, maximizing protection of their rights.
20% for Platform Operations: This portion funds technical development, platform maintenance, and marketing efforts, ensuring the platform’s sustainable growth.
NFTs and Royalty Income
ZenWaves allows creators to mint their music as NFTs, which can be traded or auctioned on the platform. For every NFT transaction, creators earn royalties. This mechanism not only provides an additional revenue stream for creators but also enhances the asset value of their music.
Instant Settlements and Revenue Transparency
Traditional platforms often have lengthy payout cycles, requiring creators to wait months or longer to receive their earnings. ZenWaves implements blockchain-based smart contracts to enable instant revenue settlements. Creators can withdraw their earnings anytime, significantly improving cash flow and financial flexibility.
Case Study: Transparent Revenue Distribution for Functional Music
Scenario: Creator A uploads a sleep-aid music track to the platform, which garners 50,000 streams in one month. The platform’s total monthly streams amount to 1,000,000, with a total revenue pool of $100,000.
Revenue Calculation:
Creator A’s Contribution: 50,000 streams / 1,000,000 total streams = 5% of total streams.
Creator A’s Earnings: 5% of the revenue pool (80% allocated to creators) = 5% × $80,000 = $4,000.
With this transparent and straightforward model, creators like A can easily understand how their earnings are calculated and receive their payments promptly.
ZenWaves: Redefining Revenue Distribution
Through blockchain technology and innovative revenue-sharing mechanisms, ZenWaves is revolutionizing the functional music industry by ensuring creators’ rights are protected and incentivized. Our platform not only provides fair and transparent revenue distribution but also fosters a thriving ecosystem where creators can sustainably produce high-quality music, benefiting the global audience.
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