Golden Observation | Roundtable: How Web3 is Changing Musicians

Author: Jinse Finance

In July, Jinse Finance, in collaboration with Baidu app, exclusively launched the "Opening the Door to the Web3 World" event month, inviting industry experts every week through video live broadcasts to explore Web3 together.

Host: Tonight is the second live broadcast. Today we will "ignore trending topics and dreams, and talk about how Web3 is changing musicians." I am Tan Hongchao, the editor-in-chief of Jinse Finance, and I will be your host today. Our three guests are: original musician Wang Feng, Wom Music head Feng Wei, and COO of Jinse Digital Collection Wang Xinyi.

Facing the exciting new world of Internet 3.0 (which we call Web3.0), more and more people are embarking on the journey to explore Web3. Today's theme is "How Web3 is Changing Musicians." So, how will Web3 change the music industry? What unique features do Web3 music platforms have compared to traditional music platforms like Web2? What pain points does Web3 solve for content creators? And what is the creator economy?

Tonight, I will discuss these topics with our guests. Today, Mr. Wang Feng can ignore trending topics and dreams, and just talk about Web3. Together, we will open the door to the Web3 world on Baidu. I also hope that friends watching the live broadcast can follow the guests' narratives and genuinely feel the journey of Chinese musicians transitioning from Web2 to Web3, experiencing the charm of Web3. I hope everyone can gain something from today's discussion.

Host: When did you start paying attention to Web3, Mr. Wang Feng? How do you understand Web3?

Wang Feng: I started paying attention to and deeply studying blockchain two years ago. In fact, I have been thinking for five or six years about how to change the survival status of Chinese musicians. I have experienced every stage that musicians go through over the past 20 years. I think the most important thing is to solve how musicians can survive and develop well. After getting in touch with blockchain, I always vaguely felt that it could provide solutions for this. About a year ago, when the concept of Web3 emerged, I felt that this concept could definitely solve these issues. Web3 has several important characteristics: one is decentralization, but currently, it is difficult for projects to achieve true decentralization. Additionally, Web3 can genuinely provide income for musicians. For a long time, the relationship between creators and fans has not been a simple conversion. Web3 can now address the pain points in between. I still have a say in this matter because I have gone through 2 to 3 eras to get to today. So from this perspective, this is an important opportunity.

Host: What is the difference between the Web3 music metaverse platform launched by Wom Music and various digital collectibles platforms?

Feng Wei: Wom Music is a Chinese music platform that integrates blockchain technology with the music metaverse. The platform primarily outputs "digital music works" and "virtual images," empowering them with physical "original music cards" and "virtual image cards," giving them special and scarce value. The value composition is based on the "intrinsic value" of the content and the sustainable "performances, creations," and other multi-dimensional content brought by subsequent creators. Secondly, Wom Music believes that music creation needs broader dissemination and empathy; it requires more singing, sharing, and circulation to achieve the goal of music dissemination and influencing the public.

At the same time, we utilize relevant Web3 technologies to ensure that all information on the Wom Music platform is completed through the Wom Smart Chain and smart contracts, and is made public to creators and music fans, maximizing the authenticity, fairness, and transparency of Wom Music data, and effectively ensuring users' rights and the traceability of content.

Therefore, the "digital works" advocated by Wom Music are fundamentally different from the "digital collectibles" on the market. Additionally, as a platform that integrates the creation, rights confirmation, circulation, sharing, social interaction, gaming, and online and offline performances of digital works, Wom Music aims to empower Chinese music culture, encourage original Chinese music, and develop the Chinese music industry. This is also the founding purpose of Wom Music.

Host: Music is part of the creator economy. Can you introduce what the creator economy is, Ms. Laura? What will Web3 bring to the creator economy?

Wang Xinyi: We should all be familiar with the creator economy, such as the big accounts and influencers on domestic platforms like WeChat public accounts, Douyin, Xiaohongshu, and international platforms like Twitter, YouTube, and TikTok.

As early as 1996, Bill Gates published an article titled "Content is King," stating, "One of the exciting things about the Internet is that anyone with a personal computer and a modem can publish any content they create." Content creators can generate economic income by creating content on the Internet, which is called the creator economy.

From Web1's personal homepages to Web2's social media platforms, and now to the Web3 era, we have witnessed an explosion of content, which is essentially an explosion of content creators and the creator economy.

However, current Internet platforms are gradually becoming centralized in their development, and content creators face some dilemmas: for example, they have no actual control over their content, platforms can arbitrarily close accounts, even those of former U.S. presidents; they have no ownership of their works, as all content is stored on the platform; there is centralized censorship; issues of fairness in content distribution; and the distribution of benefits between creators and platforms is not fair enough, as all content comes from users but users have no relation to the platform's profits. The vision of Web3 is to solve these problems by completely returning content ownership and control to the creators themselves.

Host: Mr. Wang Feng, as a seasoned content creator, what pain points do you think exist in the content industry that need to be addressed?

Wang Feng: For a long time, as a performer who writes lyrics, music, and sings, I have found that copyright income in the music industry is minimal. For example, if there are ten thousand industries in China, I believe all of them have synchronized with society, but the copyright income in the music industry should be decades behind. Another example is that if a creator writes a song, they should receive one yuan, but the current situation is that they can only get about five cents. If they write ten songs, they should receive ten yuan, but in reality, they cannot. When normal contributions do not receive corresponding returns, there is a premise that there should be a minimum guarantee for the creator to continue creating. In other words, in any industry, without income, we all struggle to get by, and it can even end their mission. If one cannot even afford to eat, it greatly harms creativity, which is crucial in the entire industry. When a creator's daily thoughts shift from "What kind of content should I create?" to "How do I pay rent? How do I get enough to eat?" even today, many creators still face this issue. Although I am doing well now, many creators rely on performance income. We see a strange phenomenon where, in foreign countries, legendary superstars can decide whether to continue performing or take a break. They never need to rely on performances for their wealth and returns because 70% of their income comes from royalties for their works worldwide, but this is not the case in China. With Web3, when I learned about Wom Music, I was particularly pleased with the application of blockchain technology because once something is on the blockchain, it cannot be tampered with. They solved this problem from the very beginning. For example, if the host releases a song priced at 10-50 yuan and generates a digital collectible, 95% of the income on this platform goes directly to the creator. For a long time, we have not had such distribution. So if a platform does this, I believe it is revolutionary. I think this alone is explosive; all creators can receive what they deserve—not excessive profits or appreciation, but allowing them to live better than before, giving them confidence and dignity, and the good works they produce will be hundreds of times better. In countries and regions with sound copyright systems, excellent works continuously emerge in the industry. Whether it is Web3 or what I currently understand about Wom, I think it is very impressive in this regard. I truly believe that as a starting point, I will strongly support and tirelessly tell the musicians around me to boldly try it out. I don't know if it will really work, but I know they are doing it. If one day you wake up and find that over 50 people are buying your works, and your income is received according to the agreement, is this not what you dreamed of ten or five years ago?

Host: As a Web3 music platform, what unique aspects does it have compared to traditional music platforms like Web2?

Feng Wei: Wom Music believes that traditional Web2 music platforms have already developed very maturely. This is a pride of Chinese music, especially many excellent domestic music platforms and large companies that have achieved excellence in music distribution and listening. This is something we need to pay tribute to and learn from. Personally, I believe Web3 is an upgrade, a reform, or even a form of inheritance. One of the missions of Web3 is to preserve the good aspects of Web2 and iteratively upgrade them through technology to make them better. Secondly, Web3's new technologies aim to solve problems that Web2 cannot address, allowing the entire industry to develop better. Therefore, when building Wom Music, we analyzed the current issues in the Chinese music industry one by one, from creator income, copyright management, income distribution, listening methods, music social interaction, playability, to music value, and made new adjustments and reorganizations in many aspects, hoping to present a completely different Chinese music world and provide music fans with more and better music content and playability.

Wom Music, leveraging the concepts and technologies of Web3, has made significant changes to the "distribution methods" of music creation, redefining "income distribution" for creators, emphasizing the combination of Web3 IP and music creation, especially highlighting the matching and integration of "digital virtual images" and "public welfare digital works" with music creation through Web3 technology.

Through Wom Music's free "tone transfer" function, users can consign "music cards," "image cards," and other items to form the circulation and appreciation of physical goods and rights.

Music fans can enjoy exclusive benefits through free listening, and Wom Music has already begun designing the Beats Island music island feature, which combines new Web3 music gameplay, music games, virtual concerts, online live broadcasts, Web3 e-commerce, personal music museums, music social interaction, and many other fun features to enhance user experience.

Thus, Wom Music is not merely a Web3 creation platform; it is more of a Web3 music metaverse, a never-ending "music party" for creators and music fans.

Wang Feng: I think Wom is doing a very detailed job here. When authors receive their due earnings, we must not forget the experiences that fans should have in the Web3 world, whether it is their rare benefits or their digital music purchases as a form of self-sovereignty; it is all exclusive. Please continue.

Feng Wei: We believe that there have always been many manufacturers in Web2, and the participants have been thinking about how to develop music social interaction, but there has never been a good solution. For example, we are all music enthusiasts and may meet through WeChat or other platforms. Can we collaborate to create some music products? If there is no music social interaction, then such musical layers will not exist. For instance, Mr. Wang Feng is already a top musician in the country, and there are many more lesser-known musicians who need more resources in the music market. Programs that Mr. Wang participates in provide opportunities and resources for newcomers. Web3 music is not just a songwriting platform; it is also a music metaverse.

Host: Kevin Kelly once published an article stating that content creators only need 1,000 loyal fans to live well, but in the Web2 era, the fate of content creators is actually in the hands of the platforms. What technical means does Web3 mainly use to change the creator economy?

Wang Xinyi: Web3 is a new generation of the Internet based on blockchain infrastructure. In addition, the decentralized technology stack of the Web3 model is also continuously developing and growing, including smart contracts, oracles, crypto wallets, and storage networks, among various technologies. Looking at them separately: blockchain is a highly secure and decentralized network where people can store data, exchange value, and record transaction activities in a shared ledger, which is not controlled by any centralized entity. The blockchain network is the pillar of Web3, providing a secure execution layer where encrypted assets can be created, issued, and traded, and programmable smart contracts can be developed.

Smart contracts are immutable programs on the blockchain that automatically execute transactions using the code logic of "if x is true, then execute y." Programmable smart contracts can create decentralized applications (DApps), which are based on cryptoeconomic protocols, laying the foundation for the development of Web3 and delivering Web3 to users. Unlike Web2.0 applications and Web1.0 static HTML pages, DApps are not run by any individual or organization but are operated by a decentralized blockchain network.

Host: In your opinion, how will Web3 change the music industry?

Feng Wei: To talk about change, I think it requires a process. First, Web3 practitioners need to be self-disciplined. Secondly, there needs to be national attention and support for Web3. Finally, the public's understanding and acceptance level is crucial. I do not believe that Web3 will arrive immediately, so Wom Music has chosen to accompany music creators and fans as they gradually integrate into the Web3 world. This process requires many experiences and more efforts from Web3 companies. Additionally, it requires many attempts. The Chinese music market is very large, and the empathy of music itself is very prominent. How to let Web3 benefit more Chinese musicians and fans is a prerequisite for whether Web3 music can develop better and faster. Wom Music is also based on the goal of empowering Chinese culture, hoping to enable Wom Music to bring more benefits to practitioners in the music industry and truly help them. Only then will more creators join the Wom Music world, and at the same time, they can create more beautiful melodies for Chinese music, allowing fans to enjoy the charm of music in the Web3 music world.

Wang Feng: I will speak from a more macro perspective about digital collectibles. I believe everyone has seen some reports. Whether on Douyin or other platforms, what they provide is a form of super fast-food content. The result of this content form is that many creators only need to write a 30-second melody. If that 30 seconds becomes popular, it may garner a billion listens, far exceeding the income from writing a very good song. However, from the perspective of artistic value and social impact, this situation will bury many excellent works. This is not Douyin's fault; it has propelled the progress of the times. Very few people can understand digital collectibles. The value of these collectibles is not controlled by the platform but is determined by users and gameplay. This is not a speculative matter.

Host: Many Web3 platforms have encountered copyright issues in the past. Can blockchain technology solve the problem of piracy?

Feng Wei: Wom Music does not lock creators' copyrights; in a free music world, every creator is unbound. Secondly, music copyrights can be encrypted and managed through multiple blockchain technologies, which is inherently very secure. In the future, Wom Music will provide corresponding copyright management tools for cooperating creators and fans, allowing them to manage their music content or assets more securely.

Moreover, leveraging Web3 technology itself is a form of rights confirmation and traceability for copyrights. The purpose of Web3 is to retain and inherit the good aspects of Web2 while solving problems that Web3 cannot address. With the development of technology, there are already many mature solutions for piracy issues within Web3, and such problems are no longer issues.

Host: In 2021 and 2022, PFP NFTs like CryptoPunks and BAYC became very popular. Do you think music-related digital works will explode, Ms. Laura?

Wang Xinyi: The imagination space for the entire Web3 music track is still very strong. Among the tracks we mentioned earlier, I believe the more certain ones may be royalties, streaming media, and creation platforms. Looking at them separately:

Streaming media and creation platforms can collaborate with well-known musicians at the IP end, using various incentives to attract numerous users.

The royalty platform, as mentioned earlier, primarily aims to solve the complexities in the traditional music industry chain, providing musicians with better tools to address the low, deferred, and opaque distribution of royalties in the industry chain. The development path for this part is also relatively clear.

For music combined with Web3 to ultimately welcome an explosion, it will require a large number of top musicians in the music track to participate in the Web3 world and shape a music ecosystem that aligns with Web3, which may lead to an explosion.

Host: How can we help traditional musicians and music lovers accept blockchain technology? What are the difficulties, and how can we do it?

Feng Wei: In the early stages, Wom Music tried to communicate with many music producers. The most common issue encountered was that while everyone had heard of the concepts of Web3 and the music metaverse, there were differing opinions on how to actually apply them. Additionally, the early concept of "digital collectibles" in China has sparked many discussions. The key issue lies in what specific help it brings to the music industry, creators, copyright holders, and practitioners. Many creators cannot distinguish which platform can truly help them. Wom Music also faced difficulties in its early startup phase; we encountered skepticism and criticism. However, we persevered with enthusiasm and have summarized a lot. Currently, Wom Music is continuously refining itself to better meet the needs of the Chinese music market. We have iterated multiple times, presenting the important content of each link in batches. This content is constantly correcting Wom Music's focus on solving some issues and needs in the Chinese music industry. At the same time, we are also continuously presenting more information and signals to creators and fans, helping them build stronger confidence. Therefore, we say we are accompanying users from Web2 to Web3. Of course, I also hope that more creators, music industry practitioners, and fans can support the development of Wom Music and jointly create a new music world for our future.

In addition to the iteration of technology and platforms, there is also the need for positive guidance and content diversity. The musical expression forms of Web3 are very rich and can be combined with many music types, including drama, intangible cultural heritage, and other music types. At the same time, Wom Music has also pioneered "public welfare digital music works," integrating music works with blockchain, the metaverse, and other content to convey more positive energy to Chinese music. The integration of these contents with music itself greatly enhances the dissemination and acceptance of music. We believe that through more diverse forms, we can guide users to establish an understanding of blockchain and Web3, and through music, we can better help everyone accept it. We also have reason to believe that the future music world will be even better.

Host: Mr. Wang Feng, can you reveal if you have a new album coming out soon? In what form will it be released?

Wang Feng: I will release a new album at the end of August. I will also demonstrate it to everyone by synchronously releasing my album on Wom. I think this is a revolutionary thing. We will see the results at the end of August.

Host: Thank you to our guests for the wonderful sharing. I hope that through tonight's discussion, everyone can better understand the Web3 world and correctly comprehend the value of digital works, thus participating in the ecological construction of the Web3 creator economy. Our live broadcast ends here tonight. If you like us, don't forget to follow Jinse Finance, as well as the latest works of Mr. Wang Feng and Wom Music. See you all next week!