Our Model

The traditional music financial market is substantial but restricted by fragmented infrastructure and limited access. Most investments in royalty cash flows or IP rights are privately arranged for a select few. This exclusivity creates capital inefficiencies, preventing external investors from participating due to the lack of effective platforms for discovering and executing deals.

Music Protocol addresses these challenges by tokenising real-world assets and offering liquid investment pools, enabling broader participation from retail and institutional investors. Artists, labels, and rights holders can issue Royalty-Linked Notes tied to music catalogue cash flows.

$RECORD token holders can join a Risk Sharing Pool to support underperforming investments in exchange for rewards. Additionally, the music bond mechanism allows investors to trade their positions on a secondary market, enhancing liquidity and mitigating the typical illiquidity of music investments.

By creating a transparent and accessible financial market for music rights, Music Protocol enhances capital flow into the music industry. It offers high-yield, risk-adjusted returns minimally correlated with traditional asset classes.