Investment platform Republic is using “Safe NFTs” to represent fans’ investments in artists’ songs and albums.
Republic uses Opulous, a decentralized peer-to-peer lending platform, in its ecosystem.
The investment platform Republic now offers what it calls “secure NFTs” designed to give fans the opportunity to share in the royalty rights of artists.
These so-called “S-NFTs” represent the investment fans make in an artist’s songs and albums, and the subsequent returns these music assets generate through airplay, streaming and licensing.
One of the main purposes of Republic is to give artists back control of their music, while also engaging fans. This investment typically involves purchasing music rights through “membership units” of the LLC that owns the song or album, the company explains on its website.
“It’s novel that the same membership units that might normally be represented by LLC membership certificates will be represented by S-NFT,” Pialy Aditya, Republic’s chief strategy officer, told us.
Initially, fans will be able to invest in a new song by rapper Lil Pump titled ‘Mona Lisa’ with Soulja Boy and an unspecified track by electronic artist KSHMR. Artists will also eventually be able to offer investors tickets, merchandise and a “non-secure” NFT drop through Republic.
Republic is using the decentralized peer-to-peer lending platform Opulous for music-related investments.Opulous is built on the Algorand blockchain and focuses on providing DeFi loans and NFTs to musicians, giving fans a share in the artists’ music rights.
Republic offers S-NFTs under U.S. crowdfunding regulations (CF). “Republic is a registered crowdfunding portal, which allows it to facilitate offerings under Reg CF,” Aditya said.” Like all Reg CF securities offerings, these offerings are not approved by the SEC and do not qualify.”