SoundMoney Protocol promises a revolution: artists finally getting their fair share, fans directly supporting the music they love, and a transparent, decentralized music industry. It's a beautiful vision. Amidst the frenzy and glamour of the Web3 bubble, can good intentions make a sustainable difference? Or will this become yet another, albeit well-intentioned, project that finds its way to the blockchain dreams graveyard?
Decentralization: Really A Silver Bullet?
The main argument against SoundMoney rests on the assumption that blockchain technology ensures transparency. The entire Web3 music ecosystem has this idea at its core. Transparency doesn't guarantee equity. Just because a smart contract can be publicly audited doesn’t mean that it’s the fairest solution. If the design puts early adopters, whales, or the platform ahead of others, then one can ask if it really solved the root issue.
Think of it like this: a transparent bank robbery is still a bank robbery. Not only is this not transparent, just because you can see where the money went doesn’t make it ethical. The devil is in the details — particularly in Web3. Oftentimes, those details are lost under layers of code, which is difficult for both many creators and consumers to understand.
SoundMoney is teaming up with Saga.xyz, and launching its new BEZY token on Ethereum and REZO. This is a complex undertaking and a question arises: How scalable is this really? How secure? Are we further just moving this excessive centralized power from record labels to, in some cases, a likely centralized blockchain infrastructure? Has SoundMoney really solved the blockchain trilemma of security, scalability, and decentralization? In the process, are they unintentionally making compromises that undermine the integrity of their mission over time? The answer is not clear-cut, and that’s what worries me most.
BEZY Token: Power to Fans or Speculators?
The BEZY token, with its crazy 27 billion supply, is the beating heart of the SoundMoney ecosystem. Large supply makes it more vulnerable to price volatility. Are fans really going to run to BEZY to buy from their favorite artists? Or will it just become another pump-and-dump speculative asset, driven by shills, hype, and hopes of quick gains?
We’ve watched this unfold over and over again in the crypto space. Too often, projects with such noble intentions tangle up in the hands of developers-turned-speculators. When the bubble does eventually burst, it’s the real users — artists and fans — that pay the price. Remember the NFT craze? Well, how many artists really won the lottery on that, as opposed to the number who got scalded?
The possible benefits of fan tokens are even more questionable. Delivering them unique content and experiences is a great way to reward those superfans. This practice poses pitfalls that most artists may not be equipped enough to manage. Are we asking musicians to be financial managers and marketing experts in addition to artists? What happens when a fan token crashes in value? Does that damage the artist-fan relationship? These are questions that the public deserves answers to immediately.
Regulatory Minefield: Music's Future or Legal Nightmare?
Let's not forget the elephant in the room: regulation. It’s no surprise, when the music industry as a whole is a very controlled and complicated space that has rigorous copyright laws and licensing agreements. How will SoundMoney navigate this minefield? Would they be able to obtain all the licenses they need to legally operate? So what do you do when the SEC comes knocking? Or they may ask whether the BEZY token in particular—and the fan token model generally—is legal at all.
Imagine this: an artist pours their heart and soul into their music, builds a following on SoundMoney, and then the platform gets shut down due to regulatory issues. Where does that leave the artist? Back to square one, likely with a greater lack of confidence in the system.
I chatted with Causes, Change and Commerce best-selling author Sarah Moshman, an indie singer-songwriter living in Brooklyn, who is excited and scared about the prospect of SoundMoney. "The idea of getting paid directly by my fans is incredible," she told me. "I'm terrified of getting caught up in some legal mess that I don't understand." Sarah’s fears are not unreasonable. In it, they call for greater clarity and responsible innovation in the Web3 music space during this time of urgent need.
SoundMoney’s hybrid “Web 2.5” strategy – combining Web 2.0 user experience with less controlled, decentralized technology – is a savvy and successful strategy. It's not enough. They need to be proactive in addressing regulatory concerns and ensuring that artists are protected every step of the way.
Ultimately, SoundMoney Protocol's success hinges on its ability to balance its idealistic vision with the harsh realities of the Web3 world. Second, you have to build that platform in a transparent and decentralized manner. On top of that, make sure it’s scalable, safe and secure, and in alignment with the law. And most importantly, it needs to prioritize the needs of artists and fans over the lure of quick profits and speculative hype.
Only time will tell. So for the moment at least, I am cautiously, very cautiously, optimistic, with an ample helping of skepticism. For in the realm of Web3, hope is definitely not a plan. What we want are real-world answers, thoughtful progress, and an authentic desire to create a more equitable tomorrow for music creators. If not, SoundMoney risks becoming just another well-meaning pipe dream, drowned out by the din of the blockchain revolution.
