Blockchain-based music streaming and sharing platform Audius has given away 50 million of its AUDIO cryptocurrency to fans and artists, Decrypt reported Tuesday.
What happened: The “airdrop,” as a cryptocurrency giveaway is called, was rolled out retroactively on Friday and reportedly benefits 10,000 artists and fans on the Audius platform.
The airdrop would be worth around $ 9.59 million at Friday’s closing price, according to data from CoinMarketCap. As of press time on Tuesday, AUDIO tokens are trading down 17.45% to $ 0.159, possibly a posthumous effect of the giveaway.
Audius offers similar services to Spotify Technologies Inc (NYSE: SPOT) and claims to be fighting what it describes as a broken music industry model.
The decentralized music protocol said in its white paper that while the music industry generated $ 43 billion in revenue in 2017, only 12% went to artists.
According to Decrypt, the startup has hired talents like musician Joel Thomas Zimmerman, also known as deadmau5, and André Allen Anjos, who goes by the stage name of RAC.
Because matter: AUDIO is reportedly a governance token, but it also allows users to listen to their favorite artists through a Discord server.
The distribution of the token was done unevenly and was based on a formula that takes into account how much an artist was streamed along with their follower count, playlist and favorite tracks, as well as re-released tracks, he noted. Decrypt.
The formula allegedly favored artists who received 90% of the tokens distributed.
A total of 5% of the tokens were distributed from a one billion supply. Zimmerman and Anjos are both beneficiaries of the token distribution, as are some other artists, who make up the Audius team or are on board as consultants, Decrypt reported.
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