Metaversal is bankless newsletter Weekly level-ups for NFTs, virtual worlds and collectibles
Dear country without banks
The intersection of DeFi and NFTs will drive innovation that will have a profound impact on many aspects of our culture in the years to come.
With this in mind, the leading web3 music project, Sound, recently introduced its own take on the DeFi-inspired bond curve approach called “Sound Swap”.
While there have been previous bonding curve music experiments such as Euler Beats, Sound Swap will allow Sound’s musicians to reach a wider audience while optimizing revenue and ensuring continued liquidity for NFT drops. It sets itself apart by providing a generalized infrastructure that
In the future, this kind of bond curve style could become popular in all sorts of collectibles, and if this becomes a reality, Sound Swap played a key role as an early driving force. So in today’s post, let’s cover the basics of this new system.
-WMP
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Sound just released sound swapa new feature to collect and sell Sound Music NFT Edition in one click.
This system allows collectors to create editions even after primary sales have ended. Also, as new editions are collected, funds are stored in the liquidity pool so others can sell them instantly at the current market price.
All NFT drops implemented through Sound Swap will start with a 24-hour Open Edition (OE) release with a price of 0.005 ETH for each edition. The musician gets his 95% of the revenue at this primary sales stage.
After the first day of casting, the drop switches to a bond curve format. This increases the price of the edition with each new purchase and decreases the price with each sale. Once the sound swap system kicks in, each of these secondary mints will contribute 7.5% to the artist, 2.5% to the sound, and 90% to the liquidity pool associated with the drop.
Again, this liquidity pool approach is designed to allow people to sell editions instantly at current market prices. To better visualize this process, the sound team provides Consider the following basic example.
“If you collect 50 primary editions and 10 Sound Swap editions, you can only sell 10 editions. Once 10 editions are sold, they can no longer be sold on Sound Swap unless additional editions are collected”
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One of the most difficult problems facing NFT creators today is choosing the exact price and supply mechanism for drops. So it’s worth noting that Sound Swap eliminates the need for musicians to contend with these factors any time soon.
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With Sound Swap, Music Drops can enjoy a flexible “live” supply. This supply will expand over time as your audience grows, paving the way for more fans to become collectors.
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Overall, Sound Swap strikes a compelling balance between UX simplicity (for both creators and collectors) and Optimizing artist reach and revenue. That said, the OE x binding curve hybrid is something new that shows more potential, so I think we’ll see more projects adopting this kind of approach to cultural collectibles.
Are you interested in sound swapping?
For those curious, the system today announced a new song by artist Reo Cragun,exhaustionand the OE phase will run from March 28th at 4:00pm EST to March 29th at 4:00pm EST. After this first his 24-hour window, the Sound Swap binding curve flow kicks in, allowing secondary casting.
As for artists, Reo Cragun is a web3 music pioneer and has just launched his first EP. FrameworkSound Protocol, and established an emerging artist group, LNRZMoreIf you want to dive deep into the NFT music scene, ‘Spent’ is your chance to support and collect from one of its pioneers.
Sound Swap epitomizes the interesting advances that occur as projects iterate and innovate at the intersection of DeFi and NFT.
Yes, we had bonding curves before. Yes, there was an OE mint before. But combining these two mechanisms gives us a generalized system that could empower many musicians in the future. and It serves as a replicable distribution model for all kinds of goodies, not just songs.
So, do we see analogue spin out for autographs, poetry, videos, etc.? .
William M. Peester is a professional writer and creator of metaversal— Bankless newsletter focused on the emergence of NFTs in the crypto economy. Recently, we also provide content to Bankless, JPG, etc.
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