Partnered With:

IP NFT+SocialFi, How will EUTERPE open the NFT and copyright market?

Read this article in 39 Minutes

Euterpe's long-term vision is to create the Everything Store for the Web 3 era.

On March 7, Euterpe CEO Jerry Liu and CFO Charles Cheng held an online chat with users. Under the theme "IP-powered NFT as a Service.", the two founders explained why they want to be an IP-focused NFT platform, and shared EUTERPE's roadmap and Token economy.

Euterpe creates an ecosystem for copyright owners, investors and fans. The copyright owner and the creator can foundry the copyright NFT and obtain the cash in the form of auction to enlarge the market value. Investors can invest in copyright NFT through initial auction and secondary market, and obtain continuous copyright income; Fans can participate in various GameFi game events and enjoy the games while playing, sharing and voting to earn rich rewards.

The following is a transcript of the online conversation

BlockBeats: Please introduce yourself first. How did you get into the NFT field?

Charles:Hi, I'm Charles, the co-founder and CFO of Euterpe. I graduated from Stanford Law School. Prior to that, He was a partner at Amino Capital, a consulting specialist at Alumni Ventures Group and Stanford Angels & AMP; Entrepreneurs member, was selected as one of Forbes 2021 TOP60 Chinese elites in North America last year. I started to enter the blockchain industry in 17 or 18. NFT is concerned about some pain points in the copyright industry and the application of NFT.

Jerry:Hi, MY name is Jerry, co-founder and CEO of The Euterpe Project. I received my Ph.D. in intellectual property Law from Stanford University. I am currently a fellow at the Stanford Center for Internet and Society, and former director of the Center for Intellectual Property and Technology Law at the University of San Francisco. And legal counsel for IP giants such as Disney, Warner, Microsoft, THE International Recording Association and the Motion Picture Association of America.

BlockBeats: Can you introduce the EUTERPE project?

Charles:Euterpe pioneered ip-powered NFT as a service model. It is the world's first IP-driven copyright NFT platform with a built-in SocialFi ecosystem. We started with music IP and will expand to include video, games, books, concerts, celebrities and other IP fields in the future.

On our platform, IP owners and creators can auction their IP globally by publishing NFT. IP investors can participate in auctions and secondary markets, invest in IP NFT, and obtain continuous IP income or immediate realization. Fans can directly support their favorite artists and works, and through broadcasting, promotion, voting and other ways to get a token reward.

Let me explain the advantages of our project from the following aspects:

1. IP resource advantages

Our team consists of blockchain innovators and INTELLECTUAL property experts from Stanford University, Google, Meta(Facebook), Tencent Music, ByteDance/TikTok, and Sony Music. Our marketing executives are product managers for North American growth at Uber and DoorDash, and marketing executives from OKCoin.

Jerry Euterpe CEO Jerry Euterpe, as a senior consultant of international Phonographic Association, Disney, Warner, Microsoft and other copyright giants, has extremely deep experience and resources in the field of virtual music copyright. His white paper on Euterpe project won the first prize of Machine Lawyering Conference in 2021.

The white paper is also the world's first blockchain project white paper published in the SSCI US core law journal. His research was adopted by the Second Circuit Court of Appeals of the United States as the basis of its decision, and he was invited to share Euterpe's business model with the United States Patent and Trademark Office, the United States Intellectual Property Office, the World Intellectual Property Organization and other official institutions, as well as top universities such as Stanford University, Columbia University and the University of California, Berkeley. We have world-leading solutions on how to combine technology with law, how to manage and protect IP both on and off the chain.

Euterpe chief Content Officer has successively served as the Copyright Director of Sony Music In China, one of the three major international record companies, and the commercial director of CAA in China, the largest international artist agency organization. He has signed, managed and cooperated with a large number of leading musicians. Later, he served as copyright Director of ByteDance music and Chinese Director of TME, responsible for copyright procurement and management of the two digital music platforms. It has rich experience in b-end management and acquisition of virtual music, landing of virtual music and docking and cooperation with copyright owners and Internet platforms.

2. Technical advantages

In terms of technology, Euterpe is backed by Silicon Valley. The project is led by a technical team led by a PhD in scientific computing from Stanford university and a senior engineer from Google, which has unique technical advantages. Our product and engineering teams come from Meta's Libra project, Google, Goldman Sachs, and Citadel, so we're pretty confident about the scale, security, and stability of back-end HFT.

A. Integrated fast and comfortable streaming media platform and integrated trading platform, which are well integrated; Now, in the market, there are either streaming media platforms or trading platforms. If we can get together, we can appreciate works, participate in our socialFi, get token rewards through appreciating, sharing, voting and so on, and trade in it. It's a seamless platform. It's not like any other platform out there. This is one of our biggest highlights;

B. We are also safe. Euterpe Smart Contract successfully passed a security audit on December 9th and the audit team confirmed that Fairyproof is a company focused on blockchain ecological security. Our background Settings are very stable, able to resist all kinds of risks. And the Euterpe system has an exchange-level security system;

C. Provide diversified trading methods. NFT not only has a primary market, but also can participate in auction and secondary market for second-hand transactions. The platform also supports switching transactions between different currencies.

D. The auction model is very unique. We use the Nobel Prize Vickrey auction model of Stanford Business School instead of the British or Dutch auction model of the market, which is the absolute leading auction model in the market at present.

3. Advantages of product design

The design of NFT itself is also very unique. At present, most NFT in the market are copyNFT, which means that they have bought copyNFT and have not got the copyright, but only got the copy of the work. Of course, some NFT are limited edition, only one copy, but the rights are still in the hands of the original person. You don't have it, and if you want to cash it out, you have to buy low and sell high, then what we think is really valuable, what brings great value is copyrightNFT, tokenizing the copyright itself.

The difference is that once you get copyrightNFT, you can not only buy it at a low price but also sell it at a high price. Through copyright, you can obtain continuous royalty income, and you can also carry out subsequent commercial development of copyrighted works. These are huge sources of income, which become money printing machine.

For example, Michael Jackson's Dangerous, a limited edition album, sells for around $260, but its copyright is in the tens of millions of dollars, and you can see a huge difference here, so what we're offering right now, It's called copyrightNFT, and we want to realize the true value of NFT, which is a very critical point.

4. Innovative SocialFi benefits.

We put a lot of emphasis on SocialFi, and built in the SocialFi ecosystem to allow users to play, share, vote and get tokens for their contributions to the work, in addition to buying NFT directly, and share with the growth of the platform and ecosystem.

5. Advantages of B2C mode.

We do not do UGC, we do not do C2C model, but focus on high-quality, professional works, to provide B2C business model and user experience.

BlockBeats: Why IP focused NFT platform? What's the difference from OpenSea?

Charles:The true value of an NFT depends on the value of the assets it is anchored to. The value of a copyrighted work is in the IP itself, not its copy. Euterpe creatively uses copyright as the anchor asset of NFT, saying no to fake assets and copyrighted copies, and bringing NFT investors real, legally protected copyrighted NFT that can generate continuous copyright income and subsequent copyright operation space. And the vast majority of the assets in the meta-universe are involved in IP, IP NFT is a direction that can really play the value of NFT.

The differences between us and Opensea are:

At present, Opensea is mainly based on C2C model, while Euterpe is positioned as B2C business model. The market entry threshold of such a model is higher, the moat is deeper, and the future valuation potential is broader.

Currently, Opensea focuses on UGC of uneven quality, while Euterpe focuses on specialized and head work rather than UGC. The reason for this is that the copyright industry itself is a head economy, and UGC itself brings limited traffic and value. Using head games as an entry point can help Euterpe achieve a significant amount of traffic in a short period of time and attract mainstream players to the NFTt market.

Currently, NFT products in Opensea are mainly copies of works, not Copyrights. In the case that NFT does not tokenize the copyright itself, the investors of NFT can only cash out by buying low and selling high, but cannot obtain the income from the commercial operation of the copyright itself and the continuous royalty income. Euterpe focuses on copyright NFT and tokenizes the copyright so that investors can obtain the copyright operation income and continuous royalty income by holding the copyright of the works behind which NFT holds them. There are only a few other projects that are trying to combine copyright with NFT, but none of them currently have a workable specialization to implement this model. At present, there is only simple, shallow work income sharing mode on the market. This is because copyright operation and trading itself has a very high professional and legal threshold. This is the Euterpe team's superior resource.

At present, due to the lack of copyright protection and legal compliance resources of Opensea, the NFT trading market is full of copyright infringement, fraud and violation risks, which bring huge risks to copyright owners, investors and the NFT market itself. Euterpe will make full use of the team's advantages in this area, build a strong copyright protection mechanism, avoid copyright infringement, and establish a comprehensive compliance route to achieve compliance operation of the platform, so as to protect the interests of copyright and investors.

Currently, platforms like Opensea don't have a SocialFi ecosystem, making it difficult for the community to share in the benefits of platform growth. The SocialFi ecosystem is built into Euterpe.

What does EUTERPE mean by IP-powered NFT as a Service? Can you interpret a few big plates in detail?

Charles:Euterpe has revolutionized the copyright industry with its advanced technology and innovative model, creating a new experience tailored for copyright owners and creators, investors and fans.

Copyright owners and creators: Traditional streaming platforms have greatly limited the value per stream of copyrighted work. Euterpe offers copyright owners 16 times revenue per stream from spotify and 80 times revenue per stream from YouTube. Compared with the long accounting periods of months to years in the traditional copyright industry, Euterpe's distribution of royalties is light speed. In traditional collective copyright management organizations, 20% to 50% of copyright revenue is not distributed to the real copyright owners, resulting in huge waste and black box operation. Euterpe's smart contract allows every revenue to be returned to the original owner, in a fair and transparent way.

The intermediary link of the traditional copyright industry has consumed nearly 85% of the copyright income on the value chain, and the creators are highly dependent on the investment and publicity of record companies. Euterpe provides the creators with a new financing channel of NFT token and an efficient publicity channel based on token economy, so that the creators can control the value distribution of their own works 100%.

Investor: The investment in the traditional copyright industry requires a huge amount of capital, and there are huge risks. In the United States, each artist needs an average investment of 500,000 to 2 million DOLLARS, which makes the copyright investment almost become a mysterious game of a few oligarchs. Through copyright tokenization, Euterpe divides the copyright of copyrighted works into 500 NFT, diversifies investment risks, and enables more investors to participate in copyright investment. By holding copyright NFT, Euterpe creates its own exclusive copyright investment portfolio, from consumers to investors and producers.

The traditional copyright industry and most NFT projects only sell copies of copyrighted works to consumers, such as vinyl records, which are generally only available for private collection and use by the owner and cannot fully exploit the value of copyright. Euterpe directly tokenizes the copyright of works and anchors the copyright of works, so that NFT holders can continue to own the copyright income of copyrighted works, carry out copyright operation and maximize the development of copyright value.

Fans: In the traditional copyright industry, fans serve as intermediaries between the end user and the creator, often only 15 cents of every dollar paid by fans for copyrighted work goes to the creator. Euterpe maximizes the middleman, allowing fans to directly support their favorite creators.

In the traditional copyright industry, fans are passive consumers and do not enjoy material benefits in the copyright value chain. Euterpe will regard fans' broadcasting, promotion and voting as their contributions to the community, and will give them corresponding token rewards according to their contributions, so that fans can enjoy wonderful works while gaining rich benefits due to their artistic taste.

In the traditional copyright industry, fans and copyright owners have a buyer-seller relationship, and their economic interests are not consistent to a large extent. Through the excellent design of the token economy, Euterpe allows fans to get rewards through broadcasting, promotion, voting and other behaviors, and share the dividend of copyright income and work appreciation with copyright owners. The interests of fans and copyright owners are highly consistent, and they enjoy the fruits of the prosperity of the copyright market together.

Euterpe offers a variety of interesting and interesting ways to play and monetize everyone on the platform.

Copyright owners and creators: upload copyright works, cast copyright NFT. With simple information input, the platform's smart contract automatically performs copyright allocation and generates continuous copyright income. Select any proportion of copyright to enter the auction process for immediate profits. Manage the uploaded works and sell the unauctioned part of the copyright in the subsequent auction or directly in the secondary market at any time.

Investors can participate in the auction model developed by the Nobel Prize-winning Stanford professor and bid for the initial copyright NFT. Copyright NFT can also be purchased and sold in the secondary market. Receive continued copyright revenue from NFT.

Fans can enjoy original works for free or pay to participate in Socialfi. Play works to play mining. Promotion works won promotion awards. Vote for entries and win votes based on the list results.

BlockBeats: Why do you think B2C will be stronger than C2C in NFT market?

Charles:The advantage of our choice of B2C model lies in that most NFT products in the market are actually very decentralized. There are many UGC products, and you don't know whether they are good or not. The quality is uneven, and there are many fraud and infringement, which is a common pain point. Through the resources, channels and expertise of our team and partners, we bring in good works from the source.

Second, we don't do UGC, mainly based on high quality, professional work, provide such works, the user to buy, not like before in the garbage pick up gold, they look at each of the NFT is valuable, are good, they can rest assured to buy, do not have to worry about fraud, need not spend too much time to screening, Every work is guaranteed. I believe that for users and investors, the investment experience will be greatly improved.

In addition, our team have a lot of the copyright industry personnel, we itself is very focus on copyright management platform, as well as the compliance of the whole system, we configure the resources and layout, to help the wealthy, and investors, reduce the face of all kinds of tort, such as fraud risk, both the risk of investment and the legal risk, the development of such, believe in the product, A good bonus for all industries.

B2C model itself than C2C has a higher threshold, deeper moat, broader market value growth space. If we compare the growth of Amazon and eBay, we can see that their market capitalization is in the trillions and the other is in the tens of billions.

We give full play to these advantages and believe that openSea will soon form a competitive advantage and unique market positioning, and gain considerable momentum.

BlockBeats: There are many NFT platforms that have recently launched tokens to motivate platform users. What does EUTERPE think of these platforms?

Charles:We believe that rewarding users with tokens and allowing them to share in the growth of the platform is a feature of Web 3. When looking at different platform modes, we should analyze the purpose, feasibility and scientificity of token system design. There are some patterns that seem to motivate users, but may be designed to attract traffic in the short term without leaving an adequate, long-term token reward pool, which may lead to an ecosystem that is difficult to maintain in the future. It is a short-term behavior, not a long-term system.

In addition, there are some patterns that may be brushed and abused because of their indelicate design, which is not conducive to the healthy development of ecology. In short, the design of a token economy for user rewards must be well thought out, proven, and sustainable.

BlockBeats: What is the Token economy of EUTERPE? What interests does the holder have?

Charles:The main functions of Euterpe's Token are as follows.

Payment: Token as a means of payment for the platform, auctions, transactions, royalties for platform NFT, and Gas for SocialFi. SocialFi: Token as a reward for SocialFi. Pledge: Tokens can be pledged for pledge rewards. Governance: Tokens can be used to participate in works voting.

BlockBeats: Can you brief us on the EUTERPE roadmap?

Charles:In the long run, we see NFT as an important infrastructure for the meta-universe, a gateway to the layout of the meta-universe. In the meta-universe, most assets outside the homogeneous token exist in the form of IP, which can be represented by NFT.

We will start with music IP, but in the future, we will gradually expand to video, books, games, offline concerts, celebrity peripheral, and other IP types such as patents and trademarks. Finally, we can expand to the entire digital native assets and the vast application scenarios of reality mapping assets in the metasverse. Amazon started out as a book-focused company, but eventually became the Everything Store of the Web 2 era. Our long-term vision is also to build the Everything Store for the Web 3 era.

BlockBeats: What are EUTERPE's immediate plans?

Charles:In terms of IP, there are now more than 30 record companies in our cooperation pipeline. The Alpha version has more than 20 famous singers and more than 30 hit songs waiting to be released in the first batch. This is just the launch of the Alpha version. The layout of our copyright is actually very large, in thousands.

In terms of the overall market development plan, we will from southeast Asia, the asia-pacific region to start, our strategic partners, Hong Kong financial assets exchange, itself is one of the three largest exchange in Hong Kong, its there are listed companies in the United States, there are hundreds of thousands of traffic, will establish a platform of NFT in Hong Kong, recent will also enter the state of trial operation, We will carry out all-round strategic cooperation in traffic, IP, license and compliance.

This is a general direction, we will not only have music copyright products, but also other product lines in the third quarter of this year, and then gradually enter the US and European markets. Our Alpha version will be available as soon as possible.