The veteran music streaming company released a litepaper that outlined the launch of its $NAPSTER token. Napster, a veteran music streaming app, is moving into the HTML3 space with the announcement that a $NAPSTER token launch will be made on Algorand.
Although a lightpaper has been released by the company, it outlines its plans to expand its music streaming ecosystem using the layer-1 blockchain. However, a launch date has not yet been announced.
The litepaper states that “Napster will unlock every opportunity of Web3 for fans and rights holders as well as music makers.” The Algorand blockchain, it said, is the “only carbon-negative blockchain infrastructure in existence.”
What is Napster?
Sean Parker, the founder of Facebook, co-founded Napster in 1999. Originally, Napster focused on digital audio and was a peer to peer file-sharing platform.
After a series of copyright lawsuits brought by the music industry, the company was forced to cease operations and file for bankruptcy in 2002.
Best Buy purchased the company in 2011 and merged it with Rhapsody. The Napster brand was then revived in 2016.
Algorand, a blockchain firm, and Matt Zhang’s Hivemind Kapital Partners purchased Napster in May 2022. They also continued offering their paid music streaming service.
According to the latest public filing of Napster, revenues for the first half 2021 were PS32.9m, an increase of PS0.2m from the same period lastyear.
What is the $NAPSTER token for?
Napster will issue $NAPSTER tokens through the Napster Innovation Foundation, a non-profit organization. There will be 10 million $NAPSTER tokens available during the launch.
“While the supply $NAPSTER tokens will be capped at 10 million coins,” Matt Zhang, cofounder of Hivemind Capital Partners told that the figure was “meaningless” until further decisions are made about how the token will work.
According to its litepaper $NAPSTER can be used to pay for music subscriptions, artist content rights and premium features of the streaming service.
It can also be used to purchase goods and services from third-party apps that are compatible with Napster Network.
Napster will also publish open-source smart contract that relate to the creation and distribution digital content within its Napster Network.
Algorand (ALGO), which has fallen by 6% in the last 24 hours, currently trades at $0.29.
According to data from CoinMarketCap, ALGO has fallen 92% from its record high of $3.28 in June 2019.