Yo! Again! I’ve got a new set of thoughts for you, this time around scarcity of NFTs, especially music NFTs.
tl;dr: I’ve dropped an NFT that’s available in unlimited quantities for 0.01 ETH until December 31, 2022. Mint yours here. I’m calling it “Always On”
Do Music NFTs Need To Be Scarce?
I’ve been thinking a lot about the concept of music as fine art and how NFTs give us an opportunity to create that in a way that we haven’t been able to, especially since music became digital. I think part of what makes something “fine” or “luxury” is not only quality, but availability. Should music be limited in access? Should music be limited in ownership? If music is available to everyone, is it fine or luxury? We’ve never said a song or album is or isn’t a classic because of the method of distribution, but we’ve definitely talked about how something that isn’t the music itself, like a rollout or tour can add to the consideration of value of a body of work. Another consideration of value of work that I think we have an opportunity to digitally play with value of music is through presentation. If I take an item and put in between 4 white walls on a pedestal, the perceived idea of value around that item is higher. Sometimes when things look like they’re supposed to be luxe, they become it through the presentation. Maybe that’s a bit “fake it til you make it” but sometimes it works.
Types of NFT Scarcity
When I think about scarcity, I think there are 2 primary approaches to it, scarcity of quantity and scarcity of time. I think they both serve different functions.
Scarcity of Quantity
Things that are limited edition, we know well in NFTs. Creating something in small amounts and selling them at a premium is basic business. I think this method will always have a place in the NFT world, as scarcity of quantity is one of the biggest hype drivers in the space, internally and externally. Selling a 1 of 1 for a lot of money does well for news articles and also has an opportunity to help with the perceived value of the artist by actualizing said value.
Scarcity of Time
Scarcity of time is interesting to me because it creates a different value proposition than scarcity as we primarily think about it. I think that using scarcity of time, especially during earlier stages of one’s journey allows for those who got in then to potentially receive benefits in the form of scarcity of quantity as your demand increases. Having an infinite supply up-front that is time-limited could be a burden in the sense that you may not be able to maximize the value of each individual item, however it will be spread more broadly, allowing you to create ✨community✨ which I think for many is the real goal.
How Do We Take Advantage of Scarcity in NFTs?
Here’s What I’m Doing
I’ll talk about what I’m doing first before speaking a bit more broadly about it. I’ve been interested in the concept of “seasons” as it relates to the NFT space, especially in a largely singles based music landscape. Creating and releasing work, recognizing different seasons, as opposed to bodies of work, poses something very interesting to think about. I’m dropping what I call an ALWAYS ON NFT, which allows for people to always have a simple and straightforward way to support me, even if my more rare drops are all sold out. This led me to drop my first Always On Music NFT is a song called Calm Down and it’s available using Zora’s relatively new Creator.
Calm Down is going to always available to mint until December 31st at 11:59 PM. 2023 will introduce a new always on NFT. Click here to mint yours now.
How We Can Continue to Use Scarcity As A Tool
The answer to the questions above is of course, depends on your goals, which is the ultimate answer to most “how should I” questions. I think using a combination of quantity and time based scarcity can create continued opportunities to satisfy your fans, old and new. This also allows for an opportunity to create a variety of price points for your work. In a world where our value as artists is constantly speculated on through NFTs, we can use time limited editions to allow every fan we have to get in, if they’re able. With this speculative world in mind, we can also create quantity limited items, which deal better in speculation. This doesn’t even begin to touch the utility possibilities that arise from being able to segment your consumer base by which NFTs they own. Not getting into that today, but definitely an avenue worth sending your mind down if you’re reading this…
In Conclusion
The one thing I’ve learned on my journey is that there are no right answers, but being equipped with the right knowledge and tools can get you closer to whatever answer you’re looking for. I try to share everything I’m thinking in hopes it gets you to that answer for yourself. More than anything, just finding a balance that works for you based on where you are in your journey and your goals for yourself is the only answer I can give.
If you’ve enjoyed this or have gained anything from me, think of the always on NFT as a way to say thanks and join the (hopefully large and growing) community of folks who support me. Mint yours now for 0.01 ETH.
Talk again later.