The highest bidder for a new income-producing NFT will receive a cut of all future mechanical, public performance and sync royalties for Lil Dicky’s 2015 hit “Save Dat Money.”
Spearheaded by Royalty Exchange, the world’s largest platform for buying and selling royalties, the first-ever music publishing NFT allows investors to buy music catalogs and songs using the Ethereum cryptocurrency, bringing “real” value to the NFT marketplace.
While NFT artwork and collectibles are often difficult to value based on speculation and scarcity, Royalty Exchange’s new “RXT” has an actual underlying value tied to a stream of royalty income collected by the NFT owner upon purchase.
The first token, for a cut of Lil Dicky’s “Save Dat Money,” will be sold via auction, opening for bids on June 7 at 11 a.m. ET. The winning bidder will generate income every time the song is streamed, sold, broadcast or licensed. The royalties will be paid every quarter in Ethereum, which can be converted into fiat currency (like the US dollar) or held as cryptocurrency.
While converting virtual cryptocurrency into asset-backed investments delivers real-world returns, Royalty Exchange also believes the new “RXT” will increase demand for music royalties by providing stability and diversifying the market.
“NFTs have very practical applications for buying and selling royalties, as the blockchain represents the ultimate standard in trust and transparency,” said Royalty Exchange CEO Anthony Martini in announcing the offering. “This is yet another tool to empower creators, while opening the market for music royalties to a broader spectrum of interested buyers. We’re only scratching the surface.”