Web3 superfan platform TRAX has announced a nearly $3 million “decentralized funding round.”
UK-based TRAX, which bills itself specifically as “a content aggregator and social marketplace helping artists build a digital space for” diehard supporters, just recently unveiled the $2.9 million raise.
As described by the startup, the capital was secured via the Internet Computer blockchain. Now, the entity is set to function “as a decentralized autonomous organization” (DAO), with its various $TRAX governance-token holders “democratically” controlling operations.
“The funds raised will be held in TRAX DAO’s treasury,” the company indicated, “allowing $TRAX holders to decide on how best to utilise them.”
Notably, between the late-December close of the decentralized round and the mid-January funding announcement, the initially mentioned $2.9 million tranche is said to have swelled (owing to a valuation boost for the underlying digital currency) to approximately $4 million.
“With our decentralized funding round complete,” CEO Tom Stuart communicated in a statement, “TRAX is seeking opportunities to maximize the benefit we provide to artists through partnerships, events, and other bespoke opportunities, in the UK and around the world.”
Previously, December had seen the TRAX head Stuart thank the operation’s backers, tease “some big announcements and updates in the New Year,” and double down on an ambitious goal of bringing “web3 technology to the masses through music.”
Expanding on the latter objective as it relates to TRAX’s core superfan-monetization ambitions, the business has emphasized its plans to help artists build lucrative fan communities offering exclusive content and shows.
As 2024 progresses – and a number of superfan platforms work in earnest to drive monetization – it’ll be worth monitoring the actual income advantages delivered to creators. As it stands, the likes of Tune.fm, Renaissance, We Are Giant, Sony Music-backed Fave, and several others are equipped with newly raised funds and looking to capitalize on the fandom of ultra-dedicated supporters.
Meanwhile, evidence suggests that superfan enthusiasm – a central component of each company’s model, of course – remains abundant. South Korea physical album sales exceeded a record 115 million during 2023, according to Circle Chart data, with Seventeen alone having moved an astonishing 16 million units on the year.
Additionally, streaming’s prevalence is growing dramatically in emerging markets including India, with the vast majority of MENA’s music revenue now attributable to streaming as well. In the long term, these and adjacent developments could well lay the groundwork for global superfan initiatives.