With the release of Tiers, we have removed Sound Swap as an option for artists. Any release that had it enabled prior to 9/25/2023 will still have Sound Swap.
Sound Swap is a feature that allows you to one-click collect and sell editions of your favorite songs.
For drops with Sound Swap, you can now mint editions at any time – even after the primary sale ends. As new editions are collected after the primary sale, funds are stored in a liquidity pool. As the pool grows, you can instantly sell your editions at the current market price.
Sound Swap automatically determines the price based on how many editions have been collected, serving as a price discovery mechanism between supply and demand.
How it works:
1. Primary sale.
Songs using Sound Swap will start with a 24 hour Open Edition at 0.005 ETH per edition.
The Golden Egg is revealed after the primary sale ends – meaning you had to be there early to win.
During the primary sale, artists earn 95% of the proceeds.
2. Collect after the primary sale.
After the primary sale ends, you can continue to mint editions. With each edition collected, the price of the next edition increases.
As new editions are collected on Sound Swap:
- 7.5% goes to the artist (similar to what happens today on secondary marketplaces)
- 2.5% goes to Sound
- 90% is stored in a liquidity pool
As the pool grows, you can instantly sell your editions at the current market price.
3. Instantly sell your editions.
As editions are collected on Sound Swap, a portion of the proceeds are reserved as liquidity for existing collectors if and when they decide to sell.
Example: If 50 editions are collected in the primary and 10 editions are collected on Sound Swap, then only 10 editions can be sold. Once 10 editions are sold, you can no longer sell on Sound Swap unless additional editions are collected.
When you sell editions, you’re instantly paid based on the current market price from the liquidity pool.
The price per edition decreases with each edition sold.
Once the liquidity pool is depleted, no further editions can be sold on Sound Swap (but you can continue to list on Sound Market and other secondary marketplaces).
Frequently asked questions
Collecting on Sound Swap
1) Why is the price per edition changing when I increase quantity?
The price per edition increases after each edition is minted. As you increase the quantity to collect, each incremental edition increases by a small amount of ETH.
2) What causes the price to change?
Sound Swap is governed by a predefined and immutable pricing curve, which specifies the change in prices as editions are collected and sold.
Today, the pricing for Sound Swap follows a quadratic equation to ensure an approachable price for early supporters while introducing a steeper increase in price as significantly more collectors participate.
3) Why is the actual mint price lower than what I see on the song page?
Since these transactions are fully on-chain, its possible to have concurrent transactions that push the price higher.
To mitigate the possibility of a failed transaction, we add in a 20% buffer and immediately refund excess to your wallet.
4) Who gets paid when I collect an edition on Sound Swap?
In the Primary Sale:
- 95% goes to the artist
- 5% goes to Sound
With Sound Swap:
- 90% stays in the liquidity pool
- 7.5% goes to the artist (like secondary sales today)
- 2.5% goes to Sound
5) Why can’t I collect any editions?
Artists have the ability to "freeze" Sound Swap for a given drop by:
- Specifying an end date. After that date has been reached, no more editions can be minted, but existing collectors can sell their editions and withdraw from the liquidity pool.
- Specifying a maximum supply:
Selling on Sound Swap
1) Why can't I sell my edition on Sound Swap?
There are a few reasons why you might not be able to sell your editions:
- Insufficient funds in the liquidity pool: Each additional mint enables liquidity for one edition to be sold. Once the liquidity pool is depleted, no further editions can be sold on Sound Swap (but you can continue to list on Sound Market and other secondary marketplaces).
- Golden egg: Golden eggs are 1-of-1s and cannot be sold to Sound Swap — these are valuable! You can still list golden eggs on secondary marketplaces like Sound Market.
2) How do I get paid when I sell an edition to Sound Swap?
As incremental editions are collected on Sound Swap, a portion of the proceeds are stored in a liquidity pool.
When you sell an edition, you're withdrawing from that liquidity pool and paid based on the current market price.
3) What happens to the NFT when I sell my edition on Sound Swap?
The NFT is burned when you sell your edition.