Sound launched a new feature that allows collectors to buy and sell Music NFTs with one click.
The new feature solves two crucial challenges - finding the right balance between supply and price and providing instant liquidity.
Here’s what to know.
How it Works
Sound Swap is a new pricing mechanism that was launched with Reo Cragun’s new track Spent.
Songs start as a 24-hour Open Edition at 0.005 ETH per edition, with artists earning 95% of the proceeds.
It works the same as open editions today, including a Golden Egg to one lucky collector.
Collectors can mint new editions after the primary sale.
Instead of the proceeds going to the artist, 90% goes into a liquidity pool to make it easier for collectors to sell.
With each new mint, the price increases. Every time a song is sold, the price decreases.
This means there is a theoretically unlimited supply for any given song, while at the same time still rewarding early collectors.
During the new phase artists earn 7.5%, Sound earns 2.5% with 90% stored in a liquidity pool.
This generates liquidity that enables collectors to sell without needing to use a secondary market like Sound Market or OpenSea.
Collectors can now instantly sell their songs instead of listing them and waiting for someone to pick them up.
The price per edition sales decreases until there’s no more liquidity in the pool. The liquidity will increase again once new editions are collected.
Why Should I Care?
Sound Swap marks a pivotal moment for web3 music.
Artists can better monetize their work and expand their collector base, while collectors can buy and sell at different price points in real-time.
Songs never “sell out” allowing for more virality and ever-evolving markets as new collectors join the space.
In a world of infinite songs, Sound Swap is a novel stab on how collecting could look at scale.
Read more in Sound’s Mirror post.
Learn more about Sound through the Sound.xyz & Sound Protocol Dashboard.
Thank you to our sponsor Sound.
Sound is a leading market to discover amazing new music and prove that you were there first.
Start collecting on Sound today at sound.xyz.
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