Modhaus Agency Introduces Cryptocurrency Compensation for Artists
The Modhaus Agency has made headlines with its innovative approach to artist compensation, as it revealed plans to pay some of its talents—including popular K-pop groups tripleS, ARTMS, and idntt—in cryptocurrencies such as Bitcoin and Ether. This groundbreaking announcement took place during the TOKEN 2049 conference in Singapore.
Introducing a New Era of Payments
During the event, Baek Kwang-hyun, vice president and co-founder of Modhaus, discussed the integration of digital currency payments within the agency’s existing blockchain platform, COSMO. This initiative is designed to not only modernize how artists receive their earnings but also to increase their familiarity with blockchain technology, thus empowering them to make informed investment choices.
Hands-On Experience for Artists
As part of this new compensation model, artists will receive a percentage of their earnings directly in cryptocurrency. Baek emphasized the importance of involving artists in open discussions about the change, ensuring their preferences and concerns are a priority.
Streamlining Revenue with Real-Time Conversion
Under this model, proceeds from sales of unique digital merchandise, termed Objekts, which include photo cards that blend physical and digital elements, will be converted to cryptocurrency instantly at the time of sale. These Objekts are an integral part of the COSMO ecosystem, where they can be bought, stored, and traded, providing a substantial revenue stream for Modhaus. This real-time conversion aims to enhance transparency and efficiency in revenue sharing through the use of embedded smart contracts on the blockchain.
Benefits of Cryptocurrency for International Artists
The transition to cryptocurrency compensation is beneficial, as it offers quicker, borderless transactions and lower fees compared to traditional banking options. This is particularly advantageous for artists who generate income across different countries, thereby eliminating delays and financial burdens associated with currency exchange. Modhaus is also committed to minimizing the risks tied to market volatility by offering financial guidance. This support is crucial for helping artists handle potential price fluctuations and tax implications responsibly.
Industry Impact and Future Outlook
The move is being closely scrutinized, with the potential to inspire other labels and agencies to adopt similar blockchain-based compensation systems. However, experts caution against the inherent volatility of cryptocurrency markets, which may pose risks of sudden financial changes for artists. As such, implementing robust financial safeguards is essential to protect artists during this transition.
By taking this pioneering step into Web3, Modhaus aims to redefine not just artist engagement but also compensation practices within the entertainment sector. As blockchain technology evolves, Modhaus’s initiative signifies a vital shift in how artists are rewarded, marking a promising direction for the future of digital interactions in the music industry.
Related Articles:
K-Pop Icons Jimin, Jisoo, Felix, and Lisa Dominate Paris Fashion Week
7:22
Izna Achieves Major Milestone with ‘Not Just Pretty’ Mini-Album Surpassing 150K First-Day Sales in South Korea
7:20
HYBE Chairman Bang Si-Hyuk Faces Travel Ban from South Korean Police Due to Stock Fraud Investigation
13:39
Leave a Reply