In today's era of rapid digitalization, the music industry is also changing, and Opulous is an important part of this change. As a lending platform based on music NFT, Opulous is committed to converting royalties from music works into tradable securities and issuing them to retail investors in the form of NFT. This makes Opulous one of the projects with the widest range of royalty income rights and the highest degree of integration with the real world on the market.
core mechanism
The core mechanism of Opulous lies in the issuance transaction of royalty NFT and the lending and borrowing based on NFT assets. It is worth noting that Opulous does not provide online streaming functions. The current product is still relatively rudimentary, with only one NFT on sale, and the lending function has not yet been launched.
Royalty NFT Offering: In November 2021, Opulous offered its only NFT that contained 50% of all real-world royalties earned from musical works. The specific issuance method is that the project party sets up a company in the name of the song, transfers 100% of the intellectual property rights and commercial use rights of the musical works to the company, and then issues securities on Republic in the name of the company, with a financing limit for $500,000. Investors purchase these securities with legal currency and share 50% of all future royalties, but do not own the original intellectual property rights and commercial use rights of the musical works.
Revenue distribution challenges
Due to the off-chain equity involved, Opulous also faces some challenges in revenue distribution. First of all, royalty income cannot be settled in real time. The project team plans to start generating income from the fourth quarter of 2021 and transfer the quarterly income to the user's Algo wallet through USDC. Second, these NFTs are securities in nature and are regulated by the U.S. Securities and Exchange Commission (SEC), so they cannot be traded within the first 12 months.
Partners and success stories: Opulous’s first NFT artist cooperation is the well-known post-00s Rapper Lil Pump, who has 7.2 million monthly listeners on Spotify. This NFT sale was also very successful, raising the upper limit of US$500,000 in just two hours, showing the market demand and potential for music NFTs.
Financing opportunities for musicians
In addition to the issuance of royalty NFTs, Opulous also emphasizes that it is a DeFi lending platform and plans to allow musicians to obtain financing by mortgaging their royalty income for up to 12 months in the future, which will provide financial support for music production and distribution. At the same time, platform users can also pledge platform tokens or other music NFTs to earn interest, which allows Opulous to create a new business model in the music industry.
Token economy
Opulous has its own platform token $OPUL. In the white paper, Opulous plans that all future transactions within the platform will be conducted through $OPUL, and $OPUL will also be used as a mortgage loan asset. This token economic model will support the sustainable development of the platform.
Currently, Opulous's royalty income is still raised through crowdfunding through traditional methods. Investors purchase with legal currency and are protected and restricted offline. Although the proof of equity is issued in the form of NFT, how to better transition to the chain in the future and combine it with the token economy on the chain will be a big challenge.
Team and financing process
Opulous CEO Lee Parsons is the founder of Ditto Music, a music company that works with more than 50,000 independent musicians. Opulous successfully received US$1.5 million in financing in February 2021, which provided financial support for its subsequent development.
Conclusion: As a lending platform based on music NFT, Opulous is working hard to convert royalties from music works into tradable assets and provide new financing opportunities for musicians. As the market demand for music NFTs continues to grow, Opulous has huge potential for future development. As the platform is further improved, both musicians and investors will benefit from it, bringing new vitality and vitality to the music industry.
In this rapidly changing digital world, Opulous' innovative model undoubtedly paves the way for the future of the music industry. As technology advances and the market matures, Opulous is expected to become a leader in the music NFT field and lead the music industry into a new era.