3 levels of DAO involvement for musicians (and those who love music)

The internet is entering a new era of community. The web3 has unlocked the possibility for communities to easily come together across platforms, which gives communities a sense of ‘realness’ that doesn’t feel the same as being on a web2 platform. Web3 gives people collective ownership of their community by holding tokens in their web3 wallets like MetaMask or Rainbow. This means it’s not the tech giants owning your data and the actual community; it’s the community that owns itself.

Digital products are trying to service these communities by letting them sign in with their own wallets, utilizing and keeping their own data. That’s a big departure from the walled garden approach of app stores and contemporary social media giants. This gives many of these communities, also called DAOs or decentralized autonomous organisations, a feeling of actual agency. Besides the fact that the space is ‘early’ and loads of rails still have to be built out, I think it’s this unspoken sentiment of agency which is energizing the people moving into community-based social media rather than social feed-based social media.

So how do you participate?

Level 1 – observe & support

Almost everyone starts here. When joining communities, just take some time to get a feel of what’s going on, what’s being shared, what are the values, who are the key people involved, etc. You might learn about adjacent communities and may have a look at them too. If a community is not your cup of tea; move on.

If you find a community that you do resonate with, the easiest thing you can do is support. Show love, be part of celebrating, amplify what members are doing (e.g. by spreading the word). Anyone can do this and it hardly requires any onboarding or understanding of the intricacies of the DAO.

Level 2 – advisory, component-building & storytelling

Once you’re actually part of a community, it will be easier to start chiming in when it comes to topics you have specific expertise about. For many reading, that’s music or the music business. In a creative community, ‘chiming in’ doesn’t just mean speaking up occasionally; it also includes making things.

What shape that takes really depends on the way the community is set up. One example is a recent contest Songcamp ran in which musicians could submit intros for Seed Club’s new podcast.

Things can also be more organic. Once you’re part of the community and see something that can be improved, do it or organise to do it. It’s a similar mentality as what you see in the free party scene where visitors are expected to contribute to the party, which sometimes means dozens of soundsystems from all over the continent gathering to throw an event open to participants for free.

This is the stage where ideas and proposals start to take shape:

  • We should have a landing page, so people can get an idea of what we’re about;
  • We should have local chapters;
  • We should create better ways to onboard new people to the community;
  • What if we had generative PFPs for all members?

Etc.

Even with a few hours per week or per month of writing, organising, developing, or making, you can achieve a lot together with a community.

Level 3 – governance

If you’re interested in a larger commitment, you can get involved in governance, which is something you’ll find natural paths towards through active contribution in most DAOs. This usually requires a pretty decent understanding of most web3 dynamics, such as tokenomics and tooling, or at least the willingness to learn. (DAOs tend to figure things out along the way and good new tools enter the sphere on a weekly basis)

However, governance is not about technology. The technology enables us to deal with existing problems in better ways than we have before. Just to name two examples of non-technical topics for DAOS:

  1. Moderation and community guidelines.
  2. Onboarding members.

In my opinion, more DAOs should think about how they onboard new people, so that these communities can be more inclusive of people currently underrepresented in the space.

How to find DAOs

The easiest way is to install Discord and join every server of communities, tools and marketplaces that seem interesting to you. Check in on a few channels regularly and ignore or mute the rest. If you’re enjoying a community, start unmuting channels. If you hear about a community, consider checking it out.

Here are some great Discords to start with:

See you in the metaverse.

Why I’m participating in Songcamp Elektra ⚡️

Songcamp started late March with a simple idea by Matthew Chaim:

This is a place for music and the new internet to crash into each other.

5 weeks later, 13 strangers had made roughly $34,000 USD through their creative collaboration which they sold as NFTs.

I watched from the sidelines excited to see artists find new ways to collaborate, be onboarded to Web3 tools, terminology, and mindset, and make money along the way. This was exactly the mentality I was referring to in my piece Thinking small: a meditation on scale vs success for artists which encouraged musicians to consider options beyond the rat race of streaming, charts, playlist pitching, and constant touring.

Now, the second season of Songcamp has kicked off and I’m glad to be able to help out the music teams in a strategic capacity. Season 2 is called Songcamp Elektra.

Steep learning curves

Once you have some basic experience with web3, many interactions become fairly easy. You’ve bought some cryptocurrency, transferred it to your wallet, acquired some tokens, maybe bought an NFT, registered your name on ENS (also an NFT, by the way), and joined a DAO where you vote on community proposals. From here on out you’re fairly familiar with some of the topics, they become easier to research, and every next step is less daunting than the previous one. It makes it easy to forget about the steep barriers to entry.

There are two barriers to entering the space: one is tech literacy and the other is economical. As I was onboarding a friend the other day, so they could register their ENS domain, I was actually shocked how much work getting set up was. I spread that out over months, but doing it all in one go was a lot.

We went through:

  • The Metamask sign up process, which is unconventional for many web users, since it requires people to securely store a phrase they need in order to access their wallet. That comes on top of a password. This practice is more common in banking than in most web services – very logical once you’re onboarded, but perhaps less so if you’re ‘just signing up for a thing’.
  • An issue adding funds to the wallet, since Metamask’s partner that allows you to buy ETH (Wyre) seemed incompatible with their bank. Maybe it was another issue, but in any case: repeated errors.
  • Registering at Coinbase to acquire ETH. Coinbase requires ID verification, so you have to upload a photo and wait for review. (if you have tips for easier methods, let me know)
  • Me sending them ETH instead.
  • Being quoted a price on ENS and then having to pay ‘gas fees’ on top.
  • When registering their name on ENS: needing to wait for minutes in order for the transactions to clear. This can make people who are used to a fast web, and fast URL registration, quite nervous.

This is tough and requires a serious commitment from people. Suddenly, the streamlined UX landscape of the internet breaks down and things get clunky. For most people, that’s daunting, which is why I wrote a piece clarifying all these terms recently for my newsletter.

What I like about Songcamp is that it helps onboard people. It is really helpful to do these things as a group and to have a trusted group of peers you’re collaborating with in case you run into trouble or have questions.

Financial barriers

I’m concerned about how hard the web3 can be to participate in if you don’t have much disposable income. The way things work right now, it feels very much like pay-to-play. I’m glad there are projects like The Mint Fund which helps underrepresented creators mint their first NFT by covering their gas fees and offering additional support, however people shouldn’t have to rely on funds in order to be able to meaningfully participate.

The way around is participating in a DAO. You can collectively raise funds and then grant participants tokens, which they can convert to cryptocurrency or fiat in order to accomplish their goals.

Songcamp did a version of this for their first season when they sold an NFT in order to raise funds to cover the camp’s costs.

Group experimentation

Together, we’ll be doing a lot of firsts. I haven’t minted an NFT, I haven’t been part of a split, and as a matter of fact it’s been a while since I could lend support to artists from the very beginning of their creative process until post-release.

Songcamp is about firsts: both on an individual level, a collective level, as well as in a more general sense. The general firsts are that the creative experiments Songcamp is running haven’t been done yet before. As a collective, it’s our first time collaborating and many people inside the collective have never met each other before. On an individual level, this is a first for the aforementioned reasons, but also because there may be web3 firsts like those I mentioned in the intro paragraph of this section.

Fun & valuable

Most of all, it’s fun. I started the article with a sum of money to get your attention, but nobody is in this for the money. We have no idea what the outcome will be. Instead, it’s about collaboration, learning, experimenting, creating, socialising, and inspiring.

It’s exciting to be able to participate. I think the time commitment may even be similar to a well-prepared conference keynote about a topic I haven’t spoken about before. But in that same amount of time, I directly help creatives (and myself) with everything I’ve described above.

The most valuable thing we’ll get out of this is that we’ll learn skills, tools, and ways of organising. We’ll develop new perspectives. All of this will compound with previous experience and make it easier to start or participate in any subsequent web3 projects thereafter.

MUSIC x is a regular newsletter about innovation in music.
Follow us on Twitter @musicxnetwork.

Select previous writing:

Blockchain basics: how to start a DAO

My recent writing has focused on the community dynamics of blockchain-based ‘Decentralized Autonomous Organisations’ (DAOs). I’ve explored:

In this article I will attempt to explain some of the more technical aspects in clear terms for people with little to no experience with these topics. I’ll be diving into the steps outlined in a tweet by Jess Sloss of Seed Club, a DAO that builds and invests in communities.

There’s a comment section below. If anything is unclear or could be worded better: let me know either with a question or by spelling things out more clearly yourself.

How to bootstrap a DAO

People familiar with English-language startup terminology will be familiar with the term bootstrapping: to start something using nothing but your own funds (or in some cases: zero funds). Continue reading to learn how a DAO might do that.

You can’t have a DAO without a great community. I won’t go into that for this piece, but recommend reading How to grow decentralized communities by pet3rpan (before you click out of this website, consider joining the newsletter, so we can reach you in case you get lost in a rabbit hole ;-)).

📥 Drop an NFT or series (on chain revenue)

I think by now, for many people, non-fungible tokens or NFTs have become synonymous with auctionable digital artworks. This is not incorrect, but it’s a little bit like saying MP3s are music, while actually it’s a technology that has lots of uses in terms of audio encryption. A slightly better way of thinking about NFTs is as collectibles.

Non-fungible tokens allow for tracking ownership, as well as functionality like ‘splits‘ which are commonly used to make sure the original author gets money (in the form of cryptocurrency) every time their NFT is resold. This is done through smart contracts: little computer programs linked to a blockchain database that run whenever certain actions are performed or conditions are met.

Although the most publicised use case is 1 NFT of a unique artwork being sold, there are also countless examples of collectibles where 10 people can buy NFTs that represent identical artworks (e.g. this NFT by musician Sevdaliza). The former case would be described as a 1/1 and the latter as a 10/10 run, like a collectible. A series could be a set of NFTs, like a bunch of 1/1s, multiple 10/10s, or any mix like a 1/1 and a 5/5 drop.

This creates on-chain revenue: value stored on the blockchain that the DAO will use to let the community participate and distribute ownership. That revenue is stored in cryptocurrency.

A recent music-related example of a DAO that funded itself with an NFT sale is Songcamp. With the on-chain revenue, it could afford to cover the fees associated with ‘minting’ (creating) an NFT for the participating artists in its first songwriting batch.

🎁 Give NFTs to dope people (on chain community)

On chain community means that you have a way to track, via blockchain, who are the people in your community. Since tokens like NFTs allow people to see who owns them, it’s an easy way to trace ownership back to a DAO (the link between the DAO and the recipient is forever recorded).

  • Step 1: create an address for your DAO on a blockchain by setting up a wallet which allows for transactions and storage.
  • Step 2: create NFTs with that address.
  • Step 3: send the NFTs to addresses of people you want to add to your community.

Now there is a link between your address and theirs, through the NFT. You can see this happening in the above screenshot, but strip away the interface of the auction house and you get something like this.

Here you can see the transfer of a token from one address to another, here indicated as club.eth, which is the same @club from the Zora auction house screenshot and actually also the Seed Club referred to at the start of this post.

A community or service can let you sign in using your wallet (e.g. Metamask) which is a little bit like the type of ‘Single Sign-On’ you’re used to around the web from Google, Facebook, and Twitter. It can then check your wallet for any NFTs or other tokens (I’ll get into this) and grant you special privileges, ranging from simple access to more advanced features.

I was recently lucky enough to get voted into Mirror, a kind of crypto version of Medium, but way more interesting (thanks for the votes!). To participate in the vote, you have to connect your wallet. If you win, Mirror transfers an access token to your wallet. On Twitter that looks like this:

On Etherscan, a tool to read about transactions on the Ethereum blockchain, the above looks like this:

Here you can see 1 address sending 10 tokens to 10 addresses through the execution of 1 smart contract (you can read the code of that contract here). Bonus points if you can figure out which address I hold. 😉

Overwhelming? No worries, the user experience is easier than setting up an internet connection or email in the 90s. In the end you just need a browser extension like Metamask’s to log in to Mirror and when it sees you hold the correct token it presents you this simple interface for creating your account:

🛫 Launch Snapshot + token gated Discord (gov. infra)

To set up the DAOs ‘governance infrastructure’, you can use a tool like Snapshot to let people submit and vote on proposals, plus you create a community for token holders (I’ve described token gating in the previous paragraphs). The latter is commonly done through Discord.

Here’s an example of a proposal for CabinDAO: a community that is creating a cabin residency program for select creators.

Here the community (or DAO) is voting on a linked proposal. It’s essentially deciding to commit a certain amount of funds (15 ETH) and community tokens to the program.

There’s a list of voters – 15 in total. They’re shown as addresses on the Ethereum blockchain and since Jon Gold has registered his name through ENS, I can recognize him and search for him elsewhere. For example, I can see he used his $WRITE token to join Mirror a few months ago. The votes are ranked by the number of community tokens someone holds (the bottom 13 are cut off). I haven’t looked into exactly how CabinDAO has distributed tokens so far, but usually they’re awarded to early community members and rewarded for participation, contribution, or in exchange for things (or cryptocurrency).

🪂 Airdrop ERC-20 tokens (governance to the ppl)

I’ve explained non-fungible tokens already, but haven’t gone into detail about other types of tokens.

ERC-20 is basically the technical standard for token implementation on smart contracts on the Ethereum blockchain. Remember Mirror awarding 10 people with tokens to join their service? It happened in 1 transaction through the execution of a smart contract.

While no two NFTs are alike (and commonly use the ERC-721 standard), ERC-20 tokens are fungible, meaning that they can be interchanged with one another. In simple terms, if I send you 1 $WRITE token mentioned above and you send me 1 $WRITE token, we end up with the same in the end. Trading NFTs would typically leave us with two distinct items.

Through your community’s smart contract, these tokens can give you voting rights or participation rights in a DAO, e.g. access to a Discord server or the ability to vote on proposals on Snapshot or similar.

This is where you might award the buyers of the NFTs with a certain number of tokens created uniquely for your community through aforementioned smart contract, e.g. if it were for my newsletter’s community, I might call them $MUSICX tokens. You’d also give early community members and other supporters some tokens in your community. This incentivises them to get active and start participating in the governance.

This process of distributing tokens among your community is called ‘airdropping’. Now, there’s just one thing remaining:

Use ETH / Tokens to go do cool shit

Like the Friends With Benefits DAO, you could let people buy their way in through exchanging a cryptocurrency (ETH) for tokens ($FWB). This means as a DAO, you have a certain liquidity from token sales. So as a community, you can use tokens to incentivize certain actions (e.g. creating a residence program for artists in a cabin) and you can use ETH to cover certain costs, from renting the cabin, to infrastructure, to perhaps paying a few developers to build your website.

That’s it. All of the above is using the Ethereum blockchain, but there are other blockchains out there that support similar functionality.

Go organise your community and if you’d like to invite me – send me a token at basgras.eth or a tweet @basgras.