According to a press release by Algorand Foundation on Monday, February 1st, Opolous is a “peer-to-peer platform to help increase artists’ access to capital without the need for traditional institutions such as banks.”
In its roots, Opolous is a DeFi scheme for musicians backed by music as an asset class. According to the announcement, Opolous will function as a loan pool that artists can borrow from and also contribute to. Artists can access low-interest loans against their past streaming revenues with the copyrights they own held as collateral while maintaining ownership and cutting out the unfair traditional banking systems.
Investors can share in high earnings and diversify their portfolio with assets previously only available to music industry insiders. Artists and investors will also be able to pay into Opulous’ Music Copyright Pools, earning 10% per annum on any contributions they make.
In essence, Opolous is a DeFi platform that aims to connect investors with artists needing a loan by leveraging Algorand’s blockchain technology. Open to anyone, the platform will provide a new venture opportunity to investors into the industry that is set to double revenues over the next decade, and enable artists to fund the next stage of their career. The project will also onboard staking partners to enable the widest possible backing.
Lee Parsons, CEO of Ditto, commented:
“Musicians are often largely overlooked when it comes to traditional banking loans, or the terms are so unfavorable it isn’t worth their time. Using De-fi, Opulous cuts out traditional banking, providing musicians a platform with minimal interest payments, while giving investors the chance to stake a claim in one of the most exciting and fastest-growing financial industries in the world.”
In Opolous, smart contracts will take care of all the processes. The project is currently in the developlent stages and the in-depth details about the project are not yet available.
Opolous is being developed by Ditto and RandLabs, a blockchain development lab specialized in Algorand technology, with the backing of Borderless Capital, TrustVerse, Somesing, BASIC, and Kosmos Capital. These firms have helped Ditto to raise $1.5 million in its seed round. Elastos, an open-source blockchain platform, is confirmed as one of the first staking partners. A minimal viable product (MVP) is expected by the end of March.
David Garcia, CEO and Managing Partner of Borderless Capital, stated:
“Using blockchain technology to democratize the access to the music’s capital markets is really disruptive and unique. We are excited to back the Opulous platform and for the opportunities, this is bringing to investors and music artists. By building on top of the Algorand blockchain, the Opulous platform will perform as one of the first real-world DeFi applications.”
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