The announcement was made during the agency’s participation at TOKEN 2049 Singapore, where Baek Kwang-hyun, Modhaus’s vice president and co-founder, presented the plan to integrate digital currency payments into the company’s existing blockchain platform, COSMO.
The proposed system will allow artists to receive a portion of their earnings directly in cryptocurrency. Modhaus aims to give its talent hands-on experience with blockchain technology while encouraging smart investments.
“We intend to let our artists experience hands-on the blockchain system, which forms the core of the Modhaus platform COSMO, and offer them the opportunity to make smart investments. This income distribution system, being introduced to the global entertainment industry for the first time, will serve as a model for the coming age of Web3,” Baek said, emphasizing that implementation will involve open discussions with the artists to address their preferences and concerns.
Under this new model, artists’ proceeds from the sale of digital merchandise, known as Objekts, or photo cards that combine real and digital elements, will be converted into cryptocurrency immediately upon sale. These Objekts are purchased, stored, and exchanged within the COSMO ecosystem, and have become a significant revenue stream for Modhaus. The real-time conversion is designed to streamline revenue sharing and enhance transparency through smart contracts embedded in the blockchain.
Modhaus believes crypto compensation will deliver faster, borderless transactions and reduced fees compared with traditional banking systems, particularly for artists earning revenue internationally. The agency asserts that this approach could eliminate delays and currency-exchange overhead, enabling artists to access their funds promptly and directly. To mitigate risks associated with market volatility and tax implications, Modhaus has committed to providing financial guidance and support, ensuring that its artists can navigate price fluctuations responsibly.
The broader industry is watching closely as Modhaus tries to bridge entertainment and decentralized finance. If successful, this initiative may encourage other labels and agencies to explore blockchain-based compensation models. Critics, however, warn that volatile cryptocurrency markets could expose artists to sudden value swings, underscoring the need for robust financial safeguards.
By positioning itself at the forefront of Web3 innovation, Modhaus aims to set a new standard for artist engagement and compensation in the entertainment industry. As blockchain continues to reshape fan-artist interactions through platforms like COSMO, Modhaus’s venture into crypto payments marks a significant step toward redefining how entertainers are rewarded in an increasingly digital world.
