Great question. Allow us to explain!
The concept is similar to an original Corite Fan Campaign from our proven fan funding model, but with a blockchain-based experience.
The campaign valuation is based on track record and music creative’s fan base. The share that the creative is willing to offer to investors and fans is considered too and it determines the potential return they can expect. Corite's team of experts uses these factors to come up with a fair and realistic valuation that reflects the true value and projection of the campaign into the future. All the financial details are explained in the Song Token Owner Contract of each campaign.
So, this is how things work:
- An artist or music creative launches an NFT Fan Campaign at Corite.
- NFTs associated with the Fan Campaign are sold in a designated marketplace and represent Song Tokens, allowing the owner of each Song Token a pro rata share of the royalties generated by the song in the streaming platforms.
- These NFTs need to be saved to the same crypto wallet registered to your Corite account. The operating blockchain network is BNB Smart Chain (BSC). Being in the wrong network or keeping the NFTs in a centralized exchange will not work.
- Each Song Token is accompanied by an ownership agreement between the artist or music creative and the initial and any subsequent owner of the Song Token, which you accept when participating in the campaign. The price of a Song Token is determined on a campaign to campaign basis, and all Song Tokens sold as part of the first sale will have the same cost. The term of ownership for a Song Token is counted from the date of successful minting and purchase of the NFTs and being made available in the Song Token Owner wallet. This term may vary on a campaign to campaign basis.
- Payments will be made available to every Song Token Owner within a reasonable timeframe after receiving the royalties from the artist or music creative and/or its distributors, or as set out in the respective Ownership Agreement. Any unclaimed royalties will be reclaimed after June 30th of the following calendar year.
NOTE: Each Song Token Owner is responsible for claiming the Song Token Royalty that they are eligible for, and Corite will not actively transfer the funds to each Song Token Owner's digital wallet.
NOTE: Owning a Song Token does not mean that Song Token Owners own any part of the musical composition in the recording (only the right to receive a share).
Would you like to create an NFT Fan Campaign? Please fill out this form.
Reach out to us if you have any questions.