“A token is only as good as its functionality.” 

– someone smart, probably

Okay, fine. The above phrase may not be attributed to anyone in particular (yet), but that doesn’t mean it isn’t true. In fact, it’s a defining part of the ethos behind our own governance and utility token, $NEWM (Ɲ). 

In case you’re new here, during our Initial Stake Pool Offering (ISPO), delegators of NEWM Pools were able to earn rewards each epoch, in the form of both $ADA and $NEWM. The ISPO in its initial form is over (although our pools are still open with adjusted staking terms), and now our delegators’ virtual pockets are full of $NEWM, and a lot of people may be wondering: 

What utility does NEWM Token provide?

It’s a good question, with an even better answer. Come along, as we breakdown 9 core utilities of the $NEWM token. 

But first, let’s cover some basics… 

What is a Utility Token? 

Within the blockchain ecosystem, tokens are assets that enable information and value to be transferred, stored, and verified efficiently and securely. Tokens commonly fall into two categories based on their functionality: utility tokens and security tokens. 

Utility tokens fulfill specific purposes and use cases and tend to impact functionality within a protocol, platform or application. These tokens generally offer diverse benefits to holders, primarily via ‘token-gating’ which grants users access to products and services and can also function as a medium of exchange within a given ecosystem.

By contrast, Security Tokens typically represent a share in the company issuing the token, a loan with fixed income (think bonds in traditional financial markets), or a stake in an asset, like real estate or commodities. 

(Need a more comprehensive refresher? Check out our Tokenomics 101 breakdown.)

So, what makes NEWM Token utility kinda cool? 

$NEWM token utility is built on three distinct pillars: governance, transactions & in-app usage, and staking & protocol incentives. Essentially, the token: 

• Enables holders to have a direct impact on the direction of the project
• Unlocks exclusive features through staking, holding or token-gating
• Supports all transactions on current and future NEWM products, fueling the entire ecosystem 
  
  

This not only creates the best possible experience for participants in the NEWM Ecosystem, but also supports the evolution of our token over time. It also adds more utility to strengthen and further decentralize the platform.

What are the 9 Core NEWM Token Utilities?

1. Voting Rights

A core feature of the Ɲ token is giving holders the ability to choose the direction in which the platform will develop. Every token holder will have the ability to delegate to different parties in the spirit of liquid democracy, or vote and submit referendum proposals through our Decentralized Autonomous Organization (DAO) structure.

2. Royalty Payouts

All royalty payout will be made in $NEWM. Using Charlie3 as our partner for our oracle solution, users will be able to see the price of $NEWM (or of ADA) at the time of claiming. Then, once an artist receives their royalty payout, they’re free to exchange $NEWM for a stable coin if they want, or keep it within the ecosystem. 

3. Primary & Secondary Market Transactions

All transactions across the entire NEWM ecosystem will exclusively utilize $NEWM. This includes the NEWM Studio, The Record Store, and later, our music rights marketplace (coming soon). Utilizing our native as the designated currency not only ensures a unified and integrated financial system, and a cohesive user experience. 

4. Access to Exclusive Content 

We’ll facilitate the use of tokens to tokengate access to exclusive content and/or experiences – both on the platform and for artists individually. This way, artists can gamify certain aspects of their platform and create unique, personal experiences for their fans. 

5. First Mover Advantage for Music Rights Listings

Tokengeting can also enable diehard fans to gain an edge on new releases on the platform. For example, say an artist that distributes through NEWM puts their album on our future marketplace. They’ll be able to allow fans who are holding stream tokens from a prior sale to purchase stream tokens (rights to claim future royalties) for the new album before anyone else. 

6. Primary & Secondary Market Fee Discounts

By holding a certain amount of Ɲ tokens, users will be able to unlock exclusive benefits, including substantial discounts on fees within both the primary and secondary markets. These fee discounts aim to enhance the overall user experience, encouraging sustained participation and fostering a dynamic marketplace within the NEWM ecosystem.

7. Marketplace Bundle Buys

Strategic token holding offers users the opportunity to explore curated collections, and exclusive offers and limited-edition releases within the marketplace, providing an enriched shopping experience. Beyond bundle benefits, users leveraging $NEWM tokens may also unlock a number of additional features within the platform. 

8. Music Distribution Discounts

From the artists’ perspective, maintaining a specific quantity of Ɲ tokens also translates into tangible advantages. One example are significant reductions in the cost of music distribution through the NEWM Studio. This incentive structure encourages creators to become active participants in the ecosystem, providing them with a streamlined and cost-effective avenue to share their work with a global audience. 

9. Full Performance Analytics 

Finally, Ɲ tokens provide a pivotal advantage in the realm of marketing and sales by granting access to performance analytics. This includes invaluable insights into demographics, geographic data, stream metrics, sales figures, and more. With this information, users can make informed decisions, tailor their strategies, and optimize their outreach efforts within the NEWM ecosystem. 

The Big Picture

If a token is measured by its functionality, then $NEWM is a veritable heavyweight (not that we’re biased or anything). From exclusive discounts to insightful analytics, these tokens blend practical utility with unique perks. This way, everyone using the platform benefits, because at the end of the day, it’s not just about transactions. It’s about enhancing the experience and creating a shared space where value goes beyond the token itself.

Still curious about $NEWM Token utility? 

Check out these two X (Twitter) Spaces to get the full scoop from our Co-Founders, Ryan Jones and Florian Pittini!