Fanbase startup leverages blockchain and fan love
Geek culture and fandom celebration site, Fanbase, launched a new DApp linking musicians directly to fans, who can get exclusive content, merchandise and VIP tickets through tokens.
Fans only get this kind of access to exclusive content and direct interactions with an artist through different membership levels based on the number of tokens they hold for a particular artist. The tokens work through a bonding curve technology used by Fanbase to allow any artist to launch a smart contract that will mint continuously their own tokens.
To illustrate, if Ariana Grande, say, should launch the Aria Token, the first fan buys an Aria token, by depositing some money into the contract, which issues the first token. As each subsequent fan buys they pay a slightly higher cost per token until a maximum price is reached.
The higher cost is pre-programmed into the smart contract based on a pricing curve, ensuring complete transparency about how the model works, and keeping things affordable for all.
The new startup is striking out in another direction away from social media platforms and as a hoped-for more meaningful way to engage with fans through creating new communities around artists they love. In the usual exchange, fans then receive better rewards and are recognised for their support, while artists, record labels and publishers get a new, powerful source of revenue and engagement with fans.
Scott Cohen, an advisor to Fanbase Live, explained to Music Ally how customer fatigue on social media platforms have led to a gap in the market that Fanbase may be able to exploit. “The more I give them [social media platforms] from a customer standpoint, the more that they abuse me and sell to me; the more they extract from me and the less they seem to deliver for me,” he says.
“I prefer a network where the more I am engaged with it then the more rewards I get from it; that makes it better from me rather than for them.”
FanBase is powered by Lightstreams Network, a DApp ecosystem allowing content creators to manage the product process chain and digitally distribute, track, control and profit from their content.
Michael Smolenski, CEO of Lightstreams, said in a release, “Fanbase will allow established bands and solo musicians to build closer relationships with their community of fans. Additionally, it will allow emerging artists to have greater exposure and capability to fund their music career. Fans will be able to directly support and interact with their favourite musicians – and in turn receive fan-only benefits such as limited/early release music and VIP performance passes.”