Fenix launches blockchain platform to empower musicians

The service, which is aimed at emerging and established artists, enables users to build their own app in 20 minutes where they can sell merchandise, concert tickets and directly engage with their fan base. In this way, the platform acts as a one-stop shop for musicians and their followers.

The platform uses blockchain technology, which increases transparency and allows digital information to be distributed, but not copied. The company also introduced its cryptocurrency called Fenix Token, which can be used on the platform to buy tickets and merchandise. Fenix Token is listed on Sky.io, an exchange platform for blockchain assets.

Fenix says the app gives musicians control of their online presence with a comprehensive dashboard that includes user-engagement analytics. The web-based version features services for artists such as video and audio, social media, merchandise, ticketing and interviews.

“Nobody has really provided meaningful support to non-famous artists,” Fenix CEO Allan Klepfisz said. “We are sincerely dedicating ourselves to do so on multiple fronts, by providing a means of significantly increasing their revenue, by constantly adding effective tools to improve their business, not taking an obscene percentage of their revenues, and giving them total control of how they present themselves.” 

In addition, fans can navigate through every artist’s app on Fenix’s platform and, using the tokens, purchase artists' merchandise and concert tickets, as well as make donations.

Built on the Ethereum blockchain network, Fenix will have a maximum of 2.79 billion tokens in circulation. To demonstrate the startup's commitment to support artists, Fenix will offer 180 million tokens as grants to artists in the first two years of business, in two grant rounds of 90 million tokens each.

The use of blockchain technology bypasses middlemen, making it possible for artists to keep a minimum of 80% of the proceeds generated. The move is an attempt by Fenix to rebalance the music industry dynamics between musicians and fans by putting fan involvement directly in the hands of artists.

“Today, it is harder than ever for artists to earn the money they deserve,” Fenix president Lance Ford said. “Solutions to help artists need new thinking, both literal and lateral. Our blockchain-powered app offers smart and simple functionality, returning to artists control over their music, image and message. Fenix puts artists in charge, empowering them to communicate directly with their fans."

Fair compensation for artists has been the subject of much debate. According to Digital Music News, more than 90% of artists go undiscovered, and those who do succeed only get about 12% of the money that the music industry generates. The Fenix tool would effectively give artists more returns for their works.

Meanwhile, music streaming service Deezer's plans to launch its User Centric Payment System – which seeks to restructure the artist payout system – have been delayed due to the coronavirus crisis. The company last week told Music In Africa that conversations with labels were still ongoing and that they "hope to launch a test pilot in France and Germany later this year."

Artists and fans can now download Fenix via the App Store and Google Play.