Who We Are

Nvak Collective is a next-generation record label and artist advocacy collective that fully embraces web3 to uplift creators. We believe that the operating system of the music industry is broken, and our mission is to make the music industry more equitable, profitable, and diverse. Our small team has already discovered talent from remote regions around the globe and launched them to billions of streams and hundreds of thousands of fans, all while providing artist-friendly deals and artist care.

Purpose

This piece explores how the gaming industry is driving mass adoption in web3, with a focus on how gamification could impact the music industry. It delves into the success and potential of web3-powered music video games, and how they can create engaging virtual hubs for fans and instigate more revenue streams for artists. The aim is to show how the gaming industry’s strategies, such as virtual economies, DLCs, and continuous updates, can be adopted by the music industry to build more meaningful connections and enhance the future of fandom in the digital age.

How the Gaming Industry is Encouraging Mass Adoption in Web3

The largest category of media is gaming, with over 3 billion gamers globally, and the gaming industry’s astute grasp of consumer behavior has been at the core of its success. It has managed to adapt to behavioral patterns while also unlocking greater revenue streams on the back of technological breakthroughs. The future of fandom built on the fusion of web3 music and gaming looks promising, as artists, creators, and game developers now have the autonomy to sketch out the blueprint - all because of blockchain technology.

The momentum behind blockchain-powered games is clear, with gaming accounting for more than half of all blockchain activity. With investors recognizing its untapped potential, they have poured a staggering $739 million into blockchain games in the first quarter of 2023 alone. The global gaming community comprises about 3.2 million individuals, standing as a monumental gateway into the world of crypto. It beckons as a conduit for mass adoption, a bridge between the tangible and the digital.

Unlocking New Revenue Streams by Merging Gaming and Music in Web3

In web3, the merging of music and gaming paves the way for an exciting future of human co-experience.

Decentralization and blockchain technology have the potential to gamify music in ways we’ve never seen before, transforming consumers from passive participants into co-creators of their own journeys. The mainstream gaming market has already begun to embrace this create-your-own-adventure ethos and capture audiences eager to build in digital landscapes, most notably with gaming platforms like Roblox.

"Today’s most compelling gaming companies are platforms. Companies like Roblox don’t create any games—players create their own games and earn a share of revenue." - Rex Woodbury

These platforms act as the technological infrastructure that facilitates the seamless integration of music and gaming experiences. They provide the tools, frameworks, and APIs necessary for developers, artists, and creators to create engaging content. The rise in popularity of these platforms has shown how consumers desire to form a deeper connection with the digital worlds they inhabit. As opposed to traditional publishing games with fixed and pre-defined rules, it lays the foundation for a flourishing vertically integrated ecosystem at the intersection of music and gaming in web3.

This ecosystem encompasses various interconnected components, including platforms, marketplaces, virtual economies, and content creators. The rise of Token Bound Accounts (TBA)  powered by ERC 6551 has the potential to create a new wealth of opportunities. It allows for NFTs to function as noncustodial wallets, redefining fan engagement, and gaming experiences by introducing unprecedented levels of interactivity, ownership, and monetization. It ushers in a new era of fandom where players can showcase their loyalty to their favorite artists and creators while being rewarded for their participation.

It’s clear that Token Bound Accounts have already taken off. According to Dune Analytics, there are nearly 3.7k ERC-6551-based accounts created to date, with over 2.8k created since the beginning of July.

One project that has embraced TBA’s so far is Future Primitive, which developed the Ethereum Improvement Proposal (EIP) ERC-6551, which introduces token-bound accounts. The idea originated when they were building technology for on-chain avatars to own digital clothing items. They realized that by assigning wallets to NFTs, avatars could own, trade, and sell their clothing directly. Recognizing its potential, they turned it into an EIP to foster consensus and make it more accessible to various collections and ideas beyond Future Primitive’s own NFT project. The goal is to enable every NFT project to own assets and interact with the blockchain.

A concept in which gaming has influenced music is in the realm of freemium access. The music industry initially resisted the concept of ‘free’ access, while gaming companies integrated this methodology into the freemium model early on. Many games are freely accessible, with revenue being generated through in-game purchases and virtual goods, creating a viral and network effect by enabling higher aggregate revenue from dedicated gamers. The music industry can adopt this approach by introducing new paid economies around songs and artists, including premium upgrades, exclusive editions, artist access, and fan incentives, with Token Bound Accounts and other emerging decentralized tech powering this.

Artists are currently facing a constraint due to fixed streaming prices, which results in missed opportunities to earn their full potential income. I had discussed in my last piece how the emergence of Layer 2’s could unlock more revenue streams for artists in this realm. Read more about it here.

How Web3 Music Companies Are Embracing Gaming

We released our first ‘Music Video Game’ a few months back called “Bruises” based on Nvak artist Annika Rose’s track. Our aim in fusing music, gaming, and blockchain technology into a music video game is to rejuvenate the relationship between artists and fans, and in turn, build a more equitable and diverse music industry long-term. It offers a gamified experience accessible via a web browser, providing an enhanced storytelling experience that allows for more interactive elements to take place. You can read more about the launch, results, and what’s next for the music video game in our latest post here. That said, we’re excited to be contributing to a larger group of projects innovating at the intersection of web3 music and gaming, many poised to make major waves over the next year.

Pixelynx is a music metaverse gaming platform created by musicians deadmau5 and Richie Hawtin. They released their first mobile game, Elynxir, at the Niantic Lightship Summit, which aims to empower music artists, digital creators, fans, and collectors to foster greater community engagement and increase retention. It’s a more creative and interactive approach that uses Niantic’s AR Lightship technology similar to Pokemon Go! It allows for gameplay in a music metaverse - allowing fans and artists to drive sub-cultures together and co-own the music experience within these fandoms.

Futureverse is providing the fundamental infrastructure and tools that serve as the backbone for powering this new web3 gaming and music phenomenon. Their core mission is to empower developers and users by providing them with the tools to create and engage with interoperable content and applications, something that was previously lacking in the metaverse. Made up of 11 different companies, their technology platform boasts a robust suite of AI content generation tools, specifically designed to enrich the music, objects, characters, and animations that bring this virtual music ecosystem to life. They’ve also recently raised a $54 Million Series A round to take their work to the next level, noting their efforts to craft experiences users don’t even realize are on the blockchain. Transparently, Nvak’s Team and artists are holders, and we couldn’t be more excited to witness their impact and expansion.

The wavGAME is a unique digital trading card music game developed by wavWRLD in collaboration with Liquality. The goal is to experiment with the motives behind collecting music and emphasize the importance of connecting with artists and experiences surrounding the music. The game allows fans to collect songs from artists’ live performances, and level up through trading collectibles. The game’s objective is to generate new revenue streams for artists and create alternative paths of entry for fans, forging a more sustainable relationship between both of these parties. It’s a strong example showing how communities can launch their own play-to-connect games that strengthen bonds within fandoms.

What the Gaming Industry Has Done Well + How the Music Industry Can Take Notes:

Virtual Economies & Online Marketplaces

Games have created virtual economies within their ecosystems, where in-game currencies are used to buy and sell virtual goods. These virtual economies have resulted in thriving online marketplaces, where players can trade, buy, and sell virtual assets. This model has allowed players to invest in the games they love and has provided an avenue for developers to monetize virtual assets and generate additional revenue streams.

The music industry can embrace forging digital spaces where fans can engage in a vibrant marketplace for exclusive music-related assets and experiences, creating a sense of ownership and investment, while amplifying fresh revenue opportunities for artists. Web3 technology allows for more granular revenue-sharing models, where fans hold certain tokens or contribute to specific songs and receive a portion of the revenue generated from those assets.

As an example, a web3 technology platform known as p00ls, empowers creators and brands to launch their own social token, enabling them to manage, leverage, grow, and reward their community effectively. Social tokens help identify and engage the true fans of the creator, allowing direct ownership of the community’s data. Money is no longer the sole currency in this ecosystem and creators can get to their fanbase more directly. P00ls has already brought social tokens to life with music artists like BLOND:ISH, whose $ISH token unlocks perks such as further access to her NFTs, replies on Track IDs, and more.

DLCs and Expansions

Downloadable content (DLCs) and expansions have become a staple in the gaming industry. Developers release additional content, such as new levels, characters, or storylines, which players can purchase to extend their gameplay experience. This monetization approach helps to keep players engaged and excited about the game while providing a significant revenue boost for developers.

Similar to expansions in gaming, web3 can democratize the music experience for fans by having the opportunity to engage in more conceptual experiences that could be all on-chain and made into digital collectibles (just as we accomplished with the music video game). Artists can create DLC packs that expand on a specific theme, narrative, or concept explored in their music. These packs can include additional songs, exclusive artwork, interactive elements, or virtual reality components.

Web3 project Futureverse just launched Quests, offering interactive challenges within FutureScore that allow users to engage and grow their community. By completing these challenges, users can earn ROOT rewards, and their FutureScore acts as a multiplier for the rewards earned. Users can track their Quest status and FutureScore in their FuturePass. It expands the longevity of the game by keeping players invested in these challenges and rewards gained during the process.

Live Services and Continuous Updates

The gaming industry has embraced the concept of live services, delivering continuous updates and new content to players after the initial release of a game. This approach maintains player engagement and encourages ongoing spending. By providing regular updates, events, and expansions, developers can retain the player base and monetize the game over an extended period of time.

There can be decentralized governance for these marketplaces, where players and artists collectively influence the game’s future development, such as the introduction of new features, music content, or changes to virtual economy rules. User-generated content creators can be rewarded with tokens and royalties whenever their content is used or traded within the ecosystem, it encourages fans to contribute to this ecosystem and help the artist’s world grow organically.

Zealy is a web3 operating system meant for building and managing communities and rewards its members for everyday actions i.e. joining a Twitter space. It automates tasks from onboarding to delegation and creates more meaningful and rewarding experiences for community members. For instance, some of these community-building capabilities can be leveraged to have a stronger fandom. Players could join discussion forums, share music-related content, and connect with each other based on shared interests, strengthening player loyalty and retention.

How Nvak Collective is Leading the Way in Web3 Gaming & Music

At Nvak Collective, with the inaugural release of the Annika Rose “Bruises” ‘Music Video Game,’ we fully intend on being ahead of the curve in this space. We will continually release updates to our roadmap and shift gears to ensure we are able to deliver the most valuable experiences that are fair for both artists and fans.

The game proved valuable in deepening the connection with existing fans and has allowed players to experience a virtual environment, collect game tokens, and access exclusive content through NFTickets. Our future plans include further pushing the boundaries of how we can create more immersive experiences pertaining to the cross-over of music, gaming, and blockchain.

We are community-driven and want to ensure our community has input and is able to be a part of this story. Please continue to share your feedback with us via Telegram, Discord, Twitter, and other designated communication channels. We are bullish on the merging of gaming and music in web3 and are grateful you’re on this journey with us.