Let’s talk about our case. We use it proceeding the following way:
– Each artist/group will get a fixed minimum payment agreed and secured, in euro and independently from the success of the festival.
– All payments made during the time of the festival will be executed “contact-less” thanks to bracelets given to festival goers with a RFID cheap incorporated, and which they will flash on our seller’s terminals in order to charge or un-charge with a digital transitory currency, called the “Lip”.
– The festival being free-entrance, those payments will concern the selling of gastronomy (food and drinks), and diverse products (vinyls, merchandising, goodies, etc.) on the festival’s location.
– For all these transactions, and before the festival, we will establish an official re-partition key, agreed by all partners involved in the production of the event (the festival, the gastronomy and products suppliers, the diverse service providers and, of course, the artists and groups performing).
– To sum it up, this re-partition key, associated to a mechanism-code executing automatically it every time it is required, is what we call a “smart-contract”.
– Concretely, every time a drink or a slice of food will be sold (via a festival-goer flashing his/her bracelet for the sum required), the money used to pay it will automatically split (in the proportions decided before) and go in direction of the “wallets”, collecting their due share on this sum (x% to gastronomy supplier’s wallet, y% to the wallet of the artists playing the day of the selling, z% to the security company’s wallet, etc.).
The whole process of establishment of the re-partition key and its execution will be public, documented, and followed as an economical, political and sociological experiment, which aims at finding new ways to valorize the artists influence and importance in the economy of a cultural event, and on the local economy hosting it.
We will actually push this second part even further, proposing this payment system to all partner venues, shops, theaters, museums, etc. associated to the SeaNaps experiment. In their case, the smart contract operating the redistribution within every payment made in Lip will be more orientated towards local economical development and follow a fair-trade-like local circle. This second smart contract will be lasting 2 days more after the end of concerts (so 5 days, all in all). It will, among other things, allow the festival-goers who want it to spend their last “coins” locally instead of trading them back on the portal we will propose to them.
For information, SeaNaps will be the first European experiment for a blockchain application of this sort, addressing the live-music industry. But this technology’s potential has already been thought as a possible ground shaker in the way the recorded-music industry is functioning, particularly concerning the creative copyrights revenues.