“Gamification is at the core of revolutions.” - Vineet Raj Kapoor

Gamification taps into our innate desire for exploration, challenge, and reward. Music consumption shouldn’t be singularly about passive consumption, rather it should be an adventure. At its core, gamification is an ode to our human inclination for play and exploration, it’s the pinnacle of investigative inquiry. It spurs a virtuous cycle, a cadence of inspiration that resonates with the human psyche, driven by intrinsic motivation. Gamification delves into our psychological needs for mastery, autonomy, and social interaction, creating a sense of accomplishment, ownership, and community. These psychological drivers are based on the concept of “intrinsic motivation.” Decentralized communities, social tokens, and collaborative creation platforms grant users a communal experience that cultivates this sense of fulfillment, allowing people to co-own experiences and co-own digital assets.

All of these pillars of gamification manifest differently in web2 compared to web3. Web3 deepens the psychological part of it, introducing true ownership of assets. It enables players to have tangible stakes in the items, characters, or other currencies they mint in the game and potentially monetize their in-game activities. This type of ownership could motivate fans to engage in the game, earn rewards, and strategically manage their digital assets to maximize their value. When it comes to building products and services in web3, it has become evident (as Li Jin from Variant Fund mentioned in her article) that the concept of “psychological ownership” is the key ingredient necessary for growth and retention in web3.

It is not uncommon for most to develop deep emotional connections with their technological devices, often to the point of addiction. From the smartphones we carry in our pockets, the computer we use, and the social media profiles we maintain, we become invested in the digital manifestation of who we are and what we value and seek the constant dopamine rewards. Digital artifacts can hold sentimental value as proven by what drives people to purchase digital assets like NFTs and crypto in the first place which has allowed their popularity and demand to flourish. This sense of identity and facets of culture people happen to source from the digital realm, may be considered a form of consciousness, albeit distinct from our traditional notions of consciousness.

Through web3-powered gamification of the music industry, the ecosystem shifts towards embracing the democratization of these experiences where artists and fans collaborate, co-create and co-own the music experience. Many individuals and tech startups are aiming to bridge this gap. Whilst scrolling through Twitter, there is no shortage of unique music projects I come across that compel me to bookmark them. For example, I came across an experiment called SongSync (via @sweetman_eth on Twitter) which is a tool enabling Spotify users to play games to earn streams for their favorite musicians on Spotify. It leverages the value of streams as rewards and empowers fans to actively contribute to the success of their favorite artists, creating more diverse revenue streams for artists.

Another tool an individual built is a real-time music visualizer on top of the sound.xyz API, integrating other tools such as Three.js and almost the full arsenal from Poimandres (via @brainFnCl on Twitter). The tool converts a song's frequencies into an active, moving visual to represent the sound in the form. While there’s a sense of tangibility we grasp when listening to our favorite tunes, tying this back to a visual asset provides a multisensory experience for the user. Music consumers love the user-friendly web2 platform Spotify where over the past few years, people have even created various plug-ins that convert one’s most played or listened to tracks, artists, and genres from Spotify into visual representations of your music taste (the list of these tools out there is truly endless but I’ve named a few below).

Spotify Music Plug-Ins:

Icebergify: Creates a chart resembling an iceberg, showcasing your top 50 artists from your short-term, medium-term, and long-term listening trends. It collects data from your listening history and displays artists you may not have listened to recently or have just started listening to.

Festify: Generates a shareable Coachella-style-like poster depicting a music festival lineup featuring one’s top favorite artists. You can choose from different poster designs and themes. You can also choose to showcase your favorite artists from different time frames, such as the past month, six months, or all-time.

Spotify Pie: Generates a pie chart showcasing the genres you have listened to in the past month. Along with the chart, it also lists your top artists of the month, creating a shareable summary of your listening habits.

Receiptify: Coverts your most played or listened to Spotify tracks or artists into a receipt that resembles a purchase paper receipt you get at a store. You can choose to view your data in this format for the last month, the last 6 months, or all time.

It’s a fascinating phenomenon, where music consumers are incredibly passionate about a music streaming platform that ordinary non-affiliated Spotify developers are creating additional tools and apps that integrate with Spotify’s API to provide unique data functionalities for user’s own enrichment to further understand through data insights, the role their curated playlists and favorite artists play in their own lives. Every new extension seems to intrinsically motivate users to share the link or screenshot of their results pulled from their personal Spotify account to share it with their social circles on Twitter, Instagram stories, Snapchat, and other platforms.

The greater takeaway from this is that people want democratized music experiences, where artists and fans converge in a synergistic partnership to collaboratively shape and share ownership of the vibrant and immersive world of music. The pursuit of self-discovery is a universal human desire, underscored by the inherent curiosity to understand ourselves and our roles in the world. It may seem a tad egotistical, but it’s why we are fascinated with the mysteries of our existence, such as horoscopes and zodiac signs, and how (we naively believe) it possibly shapes our destiny. This curiosity extends to our musical preferences as well, pondering how one’s upbringing, cultural background, or life experiences have influenced our musical preferences, shaping our sonic sensibility and perceptions.

Another reason why these creative projects exist, whether it be a tool a person built on a random weekend or starting an actual company with a powerful mission to roll out continual opportunities, is because there is a growing demand for staying ahead of the game in monetizing music investments. Over the past three decades, there have been significant shifts in music consumption from physical formats such as CDs and vinyl to digital downloads and then to streaming platforms. Soon, there will be a heightened demand for figuring out innovative strategies to monetize music as these shifts in format continue to occur. Music will probably increasingly be viewed as an investment asset, and with its evolving modes of consumption, it requires specialized expertise to effectively exploit and monetize it.

In the 1980s and 1990s, the music industry's main source of income depended solely on album sales and concert tickets for music artists and producers. A new cultural phenomenon began to set in with MTV, the groundbreaking 24-hour music channel, which played a pivotal role in shaping the industry. As more people become cognizant of how the picturization of a song enhances the storytelling element of music. The magic happens when the sonic meets the visual, becoming an ultra-powerful storytelling medium. It wasn’t until now that monetization options for videos presented themselves, with web2 platforms like Youtube, TikTok, Twitch, and more unlocking these possibilities for artists. The democratization of video production and distribution has allowed artists to have more control over their creative content and reach fans directly.

It’s no secret that the music industry's financial structure has long been a topic of scrutiny and critique. One of the web3-oriented solutions to fixing the revenue and financial structures in the music industry is Reveel, a trustless and composable protocol for revenue sharing among collaborators. This decentralized solution eliminates the need for intermediaries, operating with independent revenue paths. Customizable tier specifications empower creators with greater control over earnings and foster trust among collaborators. The financial infrastructure is the backbone of the music industry and sets the foundation for gamification, particularly in terms of monetization, defining a set framework for incentivization, contribution, and rewards and how this will likely operate within most web3 music platforms.

The artist-to-fan connection in the music industry can be likened to a distant star, shining brightly but is rather elusive. Despite the admiration and passion fans have for their favorite artists, the connection seems fragmented, almost broken. Traditional methods of fan engagement, such as concerts, merchandise, and social media interactions, only scratch the surface and fail to provide a fully participatory experience. Fans may not always have the means to attend every live show to see their favorite artist, but the importance of these growing virtual fandom hubs on social apps cannot be understated. Take, for example, Taylor Swift’s Era’s Tour, where fans who are attending shows are live streaming on TikTok. Just in the first two nights of the tour, the total number of views on these streams reached a staggering 80 million. This indicates the power of digital spaces that allows for virtual participation and engagement in the artist's world, even if physical attendance isn’t feasible.

The introduction of Showtime as a web3 social network for the industry leverages novel primitives like NFTs, Soulbound tokens, and social tokens. The platform empowers creators and artists to monetize their digital assets, creating a virtual economy where fans can collect, trade, and earn rewards for their participation. The gamified element here that’s built into the platform encourages fans to actively engage with their favorite creators and stake ownership in their art by accumulating digital assets, incentivizing fan engagement, earning them recognition, access to exclusive content, and other perks. It fuels their motivation to continue immersing themselves in a particular fandom by staying up to date with the latest releases and drops. It could psychologically instill a sense of FOMO in individuals if they notice other fans minting their own unique digital assets.

By redefining the artist-to-fan connection by becoming the main home base for various artists and their fandoms to gather online, Medallion is creating unparalleled opportunities for immersive fan participation and forming a deeper sense of community. Their overall goal is to foster greater fan participation, provide actionable insights, and unlock more economic potential for artists and fans to equally benefit through staking ownership in digital goods one controls. These digital communities include a social feed allowing fans to post content related to the artist(s) and give them access to exclusive NFT or digital collectible drops, reshaping how artists and fans interact in the digital realm. Aspects of gamification are leveraged here as fans earn benefits or rewards based on engagement and acquiring these digital assets, instigating a plethora of innovative insight and monetization opportunities on the artist's end.

The way we consume visual content in music has remained largely unchanged, with familiar access routes, but the formats and devices we employ have evolved drastically. Yet, the experience remains confined to the web2 realm, where we merely gaze upon pixels that adorn our screens, devoid of active engagement. The untapped opportunities for gamification have left a void in the fan-artist relationship. Fans want to be fully transported into the unfolding of the story and become an integral piece of the journey, much like the electrifying IRL experiences of concerts and festivals where they can feel the palpable energy through this connection. Most aspire to transcend being a mere spectator and want to actively shape the narrative.

In a revolutionary fusion of music and gaming, web3 record label and artist advocacy group Nvak Collective is pioneering the way by developing one of the first music video games. It combines gameplay with the artist’s music. The game is centered on their artist Annika Rose and her track “Bruises” and is crafted in Unreal Engine 5. In anticipation of the release of the music video game, the team is releasing four scenes that show unique fragments of the game that people can collect and mint. If one claims all four scenes, they will earn an allowlist spot in the Listening Room. This room is an exclusive token-gated immersive music environment, serving as a vibrant hub for community collaboration, in-game activations, and NFT mint opportunities. Here, fans come together, collaborate, and contribute to the dynamic world of the game. It elevates the ways fans consume music, where the boundaries between reality and virtuality blur into an unforgettable sensory journey.

Imagine owning a rare digital collectible that represents your fandom, earning badges, and having a say in decisions through decentralized governance. On-chain fan clubs could be virtual playgrounds for artists and fans alike. Fans can progress through different levels of membership or engagement based on their interactions and contributions to the community. For one, fans who attend multiple concerts, purchase limited edition NFTs, or actively participate in fan club governance can unlock higher levels of access, privileges, and recognition. This sense of progression and accomplishment can provide a sense of mastery to continue engaging with the artist’s content and community. Some of the ways fans can claim true ownership over assets in on-chain fans clubs could include the following ways listed below.

Play to earn: the concept of rewarding fans with digital assets or tokens for actively participating and engaging in the fan club community. Through activities like attending virtual events, sharing content, contributing to discussions, or completing challenges, fans can earn valuable NFTs, cryptocurrency, and other digital assets as rewards.

Play to own: allows fans to truly own digital assets that represent their fandom, such as NFTs for virtual merchandise, exclusive content, or unique collectibles. Owning these particular digital assets allows fans to show off items that are unique and scarce. This ownership provides fans with the ability to trade, sell, and participate in the fan club ecosystem.

Play to vote: empowers fans by giving them a voice in the decision-making process through decentralized governance. Fans have the opportunity to vote on proposals, participate in community discussions, and influence the direction and policies of the club. It fosters a more democratic approach, where fans have a stake in the decision-making process.

The tenets of gamification take on a new dimension in the music industry because web3 invigorated a more co-creative ecosystem. It promises a future where music surpasses mere consumption, becoming a visceral, emotive, and collaborative journey for fans and artists alike. Users can embark on virtual journeys, solve puzzles, or engage in challenges to unlock special assets that represent their fandom through play-to-earn for example. The advent of music asset tokenization is just the beginning of this gamification revolution. Where fans are given unprecedented ownership of digital collectibles, royalties, and virtual concert tickets. This brand new ownership economy will disrupt the conventional and bureaucratic music business models, paving the way for more sustainable and equitable revenue streams for artists.

You can consider “gamification” to fall under the experience economy category. Where fans are triggered by their underlying feelings of intrinsic motivation and form a psychological attachment to these “cultural products.” Instigating a sense of ownership that evolves into that of accomplishment, driving fans to engage more deeply within these music hubs, leading to increased loyalty, retention, and advocacy. It redefines our affiliated meaning to the term “commodity,” as these digital artifacts can hold symbolic and emotional value for fans. These cultural products are like ethereal fragments of a digital tapestry, woven with artistry, technology, and community. They are enigmatic envoys of the human psyche, evoking emotions, memories, and a sense of identity. Web3-built platforms are simply the conduits that ignite our underlying intrinsic motivations, striking the perfect chords, and allowing for the highest forms of play, mastery, and community to take place in these digital spaces.