Audius is a decentralized music streaming and sharing platform which has its own native token ($AUDIO) that serves three main purposes: security, special feature access, and governance.
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What Is Audius?
Audius is a decentralized music streaming and sharing platform seeking to become a real competitor of current market leaders like Spotify, Soundcloud, and Pandora. The main goal of Audius is to promote a fairer distribution of the revenue that artists get in the industry, which is nowadays around 12%, on average. To put this in perspective, professional players in sports leagues like the NFL or the NBA get an average of 48% of the earnings they generate, which means the music industry is currently rewarding its creators about 4 times less than similar industries by size. Audius wants to change that by eliminating intermediaries with its decentralized streaming platform.
The project doesn’t just want to optimize the earnings of the artists, it also aims to allow more direct and transparent interaction between creators and fans. This can be achieved by enabling a democratic system that gives universal access to the platform, distributing governance rights corresponding to the value created, and keeping records of prices and earnings of all participants. To do so, Audius has its own native token ($AUDIO) that serves three main purposes: security, special feature access, and governance.
In April 2021, the platform announced that it would allow artists to showcase their NFT collection in their own galleries so that fans can purchase them. With all the increasing attention that NFTs have been getting lately, Audius has seen the opportunity to bring non-crypto fans looking for collectibles into their own crypto-based platform. It is worth noting that Audius has no plans of becoming a bidding platform or an NFT marketplace but rather wants to increase fan engagement by aggregating collectibles listed on OpenSea, Rarible, or Super Rare, among others. Users interested in collections of their favorite artists will need to stake 100 AUDIO tokens to gain access.
Pros and Cons of Audius
Advantages of Audius
Audius is a growing platform that has been able to generate a large amount of value with much fewer users than its competitors. For instance, Pandora has about 58 million users and a market valuation of $3.5 billion, while Spotify has over 345 million users and a $54 billion valuation. At the time of writing, Audius has around 4.5 million users and a market cap of over $304 million. This serves as a good metric to understand the potential of the platform and the value that could be created with larger user adoption. Moreover, their current team is made up of highly skilled professionals that have all come together after having outstanding careers at some of the most successful companies like Google or Amazon. World-class artists like Deadmau5, Rezz, and 3LAU have already joined Audius in their revolution of the music streaming industry.
Disadvantages of Audius
The streaming service is currently free and doesn’t have any ads whatsoever. This means that artists on the platform won’t be able to generate as many earnings as they could if there was a fixed revenue stream. While it is not a permanent feature, it will take some time and effort until holders of the governance tokens can decide upon ways to monetize their following community, which is at the same time the current biggest incentive that creators have in the platform. This is so because Audius is executing a strategy to easily incorporate users in the short run and to make money out of them in the medium-long run.
Where to Buy Audius?
Storing AUDIO: Best Audius Wallets
The Audius token has had an impressive price run for the month of March 2021, which has given it lots of attention that currently lists it as one of the top 200 cryptocurrencies by market cap. The platform was created to solve a problem that has been going on for decades, and it has managed to build the technology to support its value proposition. With an increasing user community, it wouldn’t be strange to see popular artists around the world jumping onto the board of an already exciting roster. Similar projects like Chiliz, Theta, and Decentraland have all tried to decentralize other types of streaming services and have had great success doing it. Moreover, their recent addition of NFTs into their platform makes it a very interesting project that could see massive user adoption in the following months.