- Holders of EulerBeats NFTs have earned over $1.1 million in royalties—in one week.
- EulerBeats are algorithmically-generated music tracks and artworks.
Decrypt’s Art, Fashion, and Entertainment Hub.
NFTs are a special type of crypto assets that are indivisible and unique. Each NFT is one-of-a-kind or one of a very limited batch, which guarantees digital scarcity and can result in them having value for collectors.
EulerBeats are brief audio tracks paired with artworks. They were named after legendary mathematician Leonhard Euler (pronounced "oiler"). Their tracks and artworks were both generated using Euler's phi function, a mathematical function that involves prime numbers.
Well-known billionaire investor Mark Cuban, who has been on an NFT shopping spree lately, owns at least two EulerBeats and called them “the most genius idea ever.” The project was created by blockchain startup Treum and backed by Ethereum development studio ConsenSys (which also funds the editorially independent Decrypt).
There are only 27 unique EulerBeats LPs in existence, with each initially priced at 0.271 ETH ($409) plus transaction fees. At the same time, other users can mint—create them on the blockchain—and buy “prints” of them, akin to buying a vinyl plate with a licensed music track on it.
EulerBeats produce royalties for their creators
EulerBeats also have a built-in revenue stream. The holders of the 27 original EulerBeats receive 8% in royalties when each print is minted and sold for the first time.
According to Dune Analytics’ data, around $1.15 million in cryptocurrency has been paid out to the holders of the original EulerBeats in just the week since they launched.
It becomes more expensive to mint the prints as more get sold. This is because the pricing is on a dynamic bonding curve. That means that they start cheap and get increasingly more expensive as each one gets bought.
— Bankless 🏴 (@BanklessHQ) February 23, 2021
While the owners can sell their prints on the secondary market—on platforms such as OpenSea—they have another option. If they feel that the prints are getting overvalued, they can always burn theirs and get back 90% of the current cost of minting one. In this case, their own print is destroyed but it doesn't affect any other prints. The funds for this come out of the project’s reserves.
Other EulerBeats have generated royalties between roughly $27,000 and $67,000 via prints. Their prints are a bit cheaper to mint and buy too, with prices as low as $7,300.