Song Tech is a market for songs built on BASE with a model similar to Friend Tech, where users can mint songs by submitting Spotify links.

Currently, there are only 500 songs listed in Phase 2, with plans to extend to 1000 songs in Phase 3.

• User pay 0.001 ETH fee to mint a song

• Price will be determined using linear bonding curve following equation below;

Y = X * 0.001

When song is traded, total 10% fee will be charged and 5% goes to holders and 5% goes to the artist and no platform fee.

Interesting part is that artist fee will be automatically accumulated to self custodial wallet and let them claim through logging into Spotify account.

Within 5 days since launch, Song Tech made following tractions 👇

• Generated 131 ETH volume

• 791 Traders

• Generated 9.176 ETH fees

• 4.236 ETH Distributed to users

Let’s take a look how they are performing. There’s 4 action recognized at the song tech smart contract

https://basescan.org/address/0xde67d94c349960cf80625bfe762aae9428844763

1. Buy

2. Sell

3. Claim

4. Submit song - Revenue comes from here

Smart contract data was quite hard for me to analyze as most of the actions are held through internal transactions where it requires preprocessing

Anyway, I was able to classify and figure out following data.

Full Dashboard 👇

https://dune.com/wisekim_eth/song-tech

• Transactions

• Unique wallet (Buy & Sell)

• Inflow & outflow (ETH and count)

• Revenue

• Accumulated Fees

• Fees Claimed

• The early traction of Song Tech was indeed impressive, but it appears that its momentum is slowing down. Continuous growth will require additional features or catalysts, such as implementing point distribution similar to Friend Tech. It seems that Phase 3 might launch soon, or the platform might introduce a fee as they have reached their revenue cap based on the current business model.

• Traders are being strategic, with 46.2% of total fees already claimed. Assuming 50% of these fees go to the artists, it's evident that a significant portion is being collected. The fee composition indicates high selling pressure, but this is likely due to stagnation in buyer growth. Introducing new songs could attract both new and existing buyers, encouraging them to invest in the platform.

• One major downside is that artists can close the market if they don't want their songs to be traded. This poses a significant risk for projects operating in this space. To ensure sustained success, Song Tech needs to address these challenges and capitalize on its attractive concept.

  It's crucial to note that only 5 days have passed since the launch, making it premature to determine the project's success or failure. However, the concept itself is appealing, and there is substantial room for growth when comparing transaction volumes with other Social-Fi projects.