How to Invest in Royalties with Royalty Rights Tokens™
Investing in royalties to music has been a very difficult process including complex expensive agreements and legal red tape or high percentage fees on collection and distribution, along with sales being between one party and another. But owning the rights to royalties from your favourite artists can be an exciting and also financially desirable opportunity.
Fortunately, all this has changed with the launch of the Coda Royalty Rights Exchange.
Investing in royalty rights and gaining income from popular music is now within the reach of anyone. Through the Coda Exchange, anyone can now own a piece of the music through Royalty Rights Tokens™ (RRTs).
Getting Started
It's as easy as connecting a wallet to get started with your first RRTs. Using a secure wallet like Metamask or Bloom, you can connect to the Coda Exchange and start trading right away. All you need is your own personal wallet and some $RUST token.
The Royalty Utility Support Token ($RUST) is a decentralized utility token that has no owner, and is fully public on the IOTA EVM and Shimmer EVM networks. Using this token it is possible to swap these for Royalty Rights Tokens™ and start growing your portfolio of royalties.
To get hold of $RUST tokens you can go to the MagicSea DEX (Decentralized Exchange) and swap multiple cryptocurrencies for the $RUST utility token on the IOTA EVM or Shimmer EVM networks.
Once you have your $RUST you can head on over to the Coda Exchange and start building out your RRT portfolio.
Buying Royalty Rights Tokens™
Buying a RRT gives you the right to receive a percentage share in the distribution of royalties from the creative works the RRTs are connected to. By owning the RRTs you can earn uncorrelated passive income at competitive yields compared to other opportunities.
The Coda Exchange allows you to easily purchase RRTs through a simple buy button on the page of every RRT listing. Once on the exchange you simply connect your wallet, select the RRT you want to purchase, decide how many you want to buy, and confirm the transaction in your wallet.
It really is that simple. Transactions are near instant and you will own the rights to receive royalties from the releases you purchase RRTs for from the second you buy the RRTs.
So, within just a few seconds you will be the proud owner of your RRTs and you will be able to observe your current holdings and all the information about the royalties you have invested in on your dashboard.
RRT Longevity
There are a couple of different types of RRTs on the market, so be sure to do your research and understand what you are getting into. One important aspect to observe is the Term of the RRT.
The term defines the period in which the RRT will remain valid for, at the end of the term the rights will either be dissolved, or the rights revert back to the original royalty rights owner.
The common terms are 10 years, 30 years, and the Life of Rights. If an RRT is for a 10 year term it means it is only valid for 10 years after the day of its creation, likewise for 30 years, these remain valid for a 30 year period. So, if a RRT was placed on the market on the 1st January 2024, with a ten year term, it would expire on the 31st Dec 2033. Subsequently, if you purchase this right on the 1st January 2025, you would have 9 years remaining on its royalty returns.
When an RRT is up for the Life of Rights, it is up until the legal right to the work expires, which is 70 years after the life of the creator. So, investing in an RRT that includes the life of rights can offer upwards of 100 years of royalties in many cases.
What to look for in an RRT
There are a few other things to look out for in a Royalty Rights Token listing:
- Type of RRT - there are three types of RRT. Single, which will include the rights to an individual creative works. Album, a collection of related tracks from an individual creative artist or rights holder. Catalogue, a collection of unrelated creative works from either an individual, or multiple creative artists or rights holders.
- Age of Rights - this is how long the rights have been paying royalties. Generally the older the rights are the more consistent the royalty payments are.
- 12 Month Earnings - this lets you know how much royalties have been distributed for the royalty rights over the past 12 months. New releases will not have this information available.
- Track Listing - this shows you the tracks that are included within the actual royalty rights token catalogue. The more tracks, from a more diverse selection of artists can provide a more balanced long term royalty stream.
You can start your Royalty Rights Token™ portfolio on the Coda Exchange NOW and become a part of the future of the music industry.