Web3 DAO TRAX raises $2.9M to expand its Music Superfan platform

The CEOs of both UMG and WMG are among the many touting the need for a focus on superfans, and TRAX just raised $2.9 million to build tools to help it happen.

Superfans spend 80% more on music each month than passive listeners and represent a $4.2M potential market, according to Goldman Sachs’ Music in the Air Report.

The London-based web3 music startup raised the money in a decentralized funding round on the Internet Computer ($ICP) blockchain. It will operate as a decentralized autonomous organization (DAO) controlled by holders of TRAX’s new governance token, $TRAX.

The funds raised will be held in TRAX DAO’s now #4M treasury, allowing $TRAX holders to decide how to use them.

What is TRAX?

TRAX is built on the premise that fans are naturally partial to supporting their favorite artists, but that major music platforms have yet to reflect this nuance in their algorithms and pricing structure.

Its tools will serve as a content aggregator and social marketplace, helping artists build a digital space for their superfans. The platform allows artists to grow their communities and increase revenue using exclusive content and events.

“[Fans are] looking for a less anonymized music experience. When a fan buys content on TRAX, they’re actively building a relationship with artists that supports future projects and brings everyone in the community closer together,” said Henry Wilson, co-founder & COO of TRAX, in an interview with Wonderland Magazine last year.

Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.