In 2023, NFTs shook up the music industry by enabling artists to forge deeper connections with fans and distribute their work in new ways. Independent musicians and major labels leveraged web3 technologies to release music NFT drops with unique perks, from exclusive tracks and backstage passes to digital art and collectibles.

Music NFTs are unique digital tokens representing ownership or access to music-related files on a blockchain. These files can hold songs, albums, sound recordings, visualizations, concert tickets, artwork, and other music-related content. Because NFTs are minted on blockchain technology, which provides a secure and transparent way to verify ownership, the owner can verify their item's authenticity and provenance. Each music NFT has distinct metadata and a unique identifier, making it indistinguishable from other tokens.

How music NFTs are shifting fan engagement and revenue models for artists

The implications of NFTs in the music world go beyond fan interaction, even extending into new business models and revenue streams for musicians. Music NFTs are increasingly being paired with physical releases, like exclusive merchandise and limited-edition products that appeal to fans. For example, hip-hop record label and management powerhouse Roc Nation teamed up with Puma and tech firm Legitimate in July 2023 for a special sneaker release where each pair of sneakers was embedded with an NFT. Owning the sneakers gave fans access to exclusive content and future events. This hybrid approach offers a tangible connection to the digital track, which before was a mere audio file, and appeals to fans’ desires for unique memorabilia.

This shift is helping artists and music labels experiment with “fan-first” business models, where ownership, interactivity, and community form the backbone of the experience. As the technology matures, NFTs may continue to reshape how fans and creators interact, fostering deeper connections and inspiring more immersive experiences like video games. Canadian electronic DJ Deadmau5 for example frequently appears in popular online games and even launched his own racing game where players can collect digital cars as NFTs.

How the NFT market could update the music industry

Blockchain’s transparency addresses one of the longest-standing issues in the music industry: revenue tracking. NFT music artists are experimenting with smart contracts to help ensure payments are distributed faster and more accurately whenever their music NFTs are resold — a process once lauded by the American Bar Association as an "unmatched solution" to the industry's system.

Now that you better understand how music NFTs work and the reasoning behind making a music NFT collection, here are seven standout NFT music drops from 2023 and 2024 that showcase the exciting synergy between music and blockchain.

Wu-Tang Clan's Once Upon a Time in Shaolin NFT release

In 2015, Wu-Tang Clan recorded "Once Upon a Time in Shaolin" as a single-copy album, making it a true rarity with no digital files, downloads, or streams available to the public. Now, digital art collective PleasrDAO owns this one-of-a-kind work and transformed it into an NFT in June 2024. Fans can mint an NFT representing ownership of this album on the project's website. Each NFT purchase grants owners access to a music sampler and speeds up the album's public release by 88 seconds per transaction. As of 2024, its scheduled unveiling is on pace to happen in the year 2103.

Reo Cragun and Daniel Allan's Criteria EP drop

Criteria EP technically came out in December 2022, but the drop was such a success that it helped supercharge music NFTs as a category of interest for 2023.

The extended play features eight tracks built on hip-hop vocal work from musical artist Reo Cragun, who has opened for Billie Eilish on tour and is featured heavily on Flume's Quits EP, and electronic soundscapes from Daniel Allan, an LA-based musician.

The drop of 2,500 NFTs was divided by the individual tracks, with the title song being the rarest with only 25 editions, and the most common song featuring 1,000 editions. The collection fully sold out, raising nearly 110 ETH with activations across multiple web3 platforms, including Sound, OnCyber, Arpeggi, Bonfire, and Spinamp.

LNRZ's Satellites album

LNRZ is a music collective founded by musical artist Reo Cragun. The decentralized autonomous organization (DAO) behind LNRZ releases music NFTs through drops curated with select partner musicians.

In April 2023, LNRZ released its first piece of original music: Satellites, a six-track album that emerged from a song camp in Las Vegas and featured work from five up-and-coming artists. What made the drop so unique in the music NFT space is the at-large LRNZ community voted on the major mechanics of the drop, including supply, price, and how the rarity is designed. The drop sold out of 1,250 editions in about 24 hours, showing the viability of LNRZ’s approach to making and distributing music.

Snoop Dogg's XYZ and Let Me Hit Somethin singles

Acclaimed rapper and web3 innovator Snoop Dogg has dropped music tracks as NFTs left and right.

In February 2023, Snoop dropped "XYZ" as an open edition NFT for only 72 hours, selling over 10,000 units and unlocking a unique “golden egg” NFT for one lucky holder.

The rapper followed up on April 20, 2023, with another NFT track “Let Me Hit Somethin,” and added a twist: collectors could only mint the token on the launch day, and selling the edition would burn the NFT and withdraw funds from a liquidity pool, which is designed to enforce a pricing curve for collectors who missed the mint day.

Illenium's Phoenix Family fan club

American DJ Illenium released a digital deluxe version of his album "Illenium Fire, Ice & Ash" as three limited edition NFTs in April 2023, following a previous launch in March of an NFT-backed access pass for his fans. The pass granted exclusive content and access to a virtual fan club built on the Medallion sales and marketing platform.

Unlike normal streaming services, Illenium’s fans and collectors could only unlock the third ASH edition of the deluxe album if they collected the first two editions, "Fire" and "Ice," or if they teamed up with a fan who collected the other edition. Fans scrambled and coordinated with each other to play this game.

LoudPunx NFTs

Launched in February 2023, the LoudPunx collection consists of 2,435 generative avatars inspired by hip-hop culture. Each NFT functions as a lifetime VIP pass to all Rolling Loud music festivals around the world. Holders can also enjoy other benefits, including dedicated will call and entry lines, VIP lounges, exclusive merch drops, digital concert experiences, premier hip-hop content, and early information on all future projects.

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If you want to own a digital piece of the music you love, then look no further than these and other interesting drops. We’ll surely see more and more artists engaging in innovative drops in the coming years and look forward to increasingly great music making its way on-chain.