SeaNaps created its own model of payment, based fair trade and social economy principles. It relies on the rising technology called “Blockchain”, which was originally designed in order to support the crypted currency Bitcoin. It now offers lots of possibilities, among other things in terms of:
– Transparency of payments
– Distribution of risks and trust
– Protection and certification of Identity and intellectual property
– Creation of intelligent contracts for wealth re-partition among different contributors to a same project
But 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 distribution 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 distribution key, associated to a mechanism-code executing it automatically 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 distribution 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.
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.