NDP · the market

The music industry's problems — and the protocol's answers

We start with an honest look at the market: every problem below comes with verified numbers and sources, and each one maps to a specific NDP mechanism that closes it.

Global problems · The Russian market · Alternatives · What works today · Sources

Global problems

Industry pains that no operating system solves — not the platforms, not the collecting societies, not the previous wave of blockchain startups.

Royalty-free samples: the sound's author is cut off

Sample libraries pay the pack creator only for downloads. If a sample lands in a track with millions of streams, its author gets nothing: the royalty-free model has no downstream share. The alternative — manual clearance — does not scale to release volume.

NDP's answerCascading royalties over the derivative graph: a usage event → splits → a share flows down the “derivative → source” chain, up to 10 levels. A sample has no ISRC — it gets its own NDP-ID and participates in settlements like any track. Status: Stage 0 pilot.

AI trains on music without compensation

The industry has travelled from lawsuits (up to $150K per work) to licensing deals between majors and generative platforms. But even in the “legal” deals the payout chain down to every author — session musicians included — is missing: there is nothing to solve it with, no machine-readable rights layer.

NDP's answerGenerative clearing: a generation's output is matched against the registry by the ADNA fingerprint — ≥0.90 means the track, 0.75–0.90 a derivative with a split payout. A micropayment settles at generation time; the verdict is a number, not an opinion. The NDT AI-manifest defines whether a work may be used for training and slicing. Status: roadmap (SPEC §7.17).

Royalties take 3–6 months and shrink on the way

Between a stream and the author stand an aggregator, a label, a society and a bank — every step costs a share and months. Distributors withhold 15–30% of royalties; Identifyy-class services report up to 120 days after quarter end.

NDP's answerFrom usage event to payment order in under 60 seconds: the settlement engine splits the incoming payment across splits and the derivative graph automatically. Rails: SBP today, the digital ruble as banking APIs mature. Status: pilot — the Stage 0 settlement circuit.

Rights are unreadable by machines

Terms of use live in PDF licences, contracts and email. Neither a player nor an AI service can check who owns a track and on what terms — and AI doesn't hear audio, it only sees metadata. Plagiarism takes months to surface.

NDP's answerThe NDT manifest is embedded in the audio file itself: authors, splits and licence terms survive copying and forwarding. 21 MCP tools expose rights to players, platforms and AI agents — the audio file is its own contract.

Detection serves platforms, not authors

Recognition systems (the Content ID class) work for venues: the verdict stops at a block or takedown, and the money stays inside the platform's ecosystem. A rightsholder on the outside gets neither a work passport nor an automatic share.

NDP's answerThe full cycle instead of a takedown: heard → identified → cleared → paid. NDP stands on the author's side — the fingerprint, registry and settlement work for the rightsholder, not the storefront.

The Russian market

Russian demand has grown at double digits for three straight years, while rights verification and clearing infrastructure never emerged — the gap NDP closes.

The market grows — clearing doesn't exist

Streaming in Russia: 46 billion ₽ in 2025 (+23%), projected 76.2 billion ₽ by 2029. The money is in the system; the technology to distribute it between rightsholders is not.

NDP's answer“SBP for media”: an identification and settlement layer that slots in between platforms and authors without displacing the incumbents.

The majors left — the rights question stayed

In March 2022 Universal, Sony and Warner suspended operations in Russia (Sony fully closed its division by autumn 2022); Spotify, Deezer and Live Nation left. The services left, the demand didn't: self-release grew, while rights-clearing infrastructure never appeared in their place.

NDP's answerA Russia-native circuit: registry and settlement in Russian jurisdiction, personal data under 152-FZ, payouts over national rails.

~90% of artists are independent, without lawyers

Nearly every release in the country is a self-release. The indie tail has neither lawyers nor correctly drafted splits: effectively, every second release has no properly formed rights chain.

NDP's answerAutomatic splits (Σ=100) in the artist's cabinet and verification without lawyers — three paths: via a label, independent KYC, or community.

Western infrastructure is cut off

Splice does not accept payments from Russia; DistroKid does not work with Russian cards. Sample infrastructure and distribution are a wide-open import-substitution window.

NDP's answerIts own sample infrastructure: deposition and cascading payouts to pack authors — with no foreign storefronts or cards. Status: deposition works; sound search is on the roadmap.

Collecting societies post record revenues, distribute by hand

RAO for 2024: 5.2 billion ₽ collected (+17%, a 10-year record) — with 3 billion ₽ paid out; VOIS: 1.5 billion ₽. Between collection and payout sit months of manual reporting; public-performance control means inspectors walking venues with notebooks.

NDP's answerA circuit for collecting societies: a detector listens → fingerprint → registry verdict with geo and timestamp. Machine-readable statistics instead of notebook reports — a finding turns into a one-minute public-performance licence, not a fine. Status: roadmap (SPEC §7.10).

Musicians can't afford lawyers

Only 15% of Russian musicians earn more than 100,000 ₽ a month, and for 76% music is not their main income (Zvuk × Moscow Music School, 2025). Legal support is a luxury this market cannot buy.

NDP's answerA dispute is settled by maths, not a lawyer: a fingerprint verdict and automatic split calculation. Track deposition — from 490 ₽ instead of hours of legal work.
…tracks in the registry — live from registry stats
…verified artists with passports and cards
…usage events in the receipt journal (SPEC §7.1)

Why the alternatives fell short

Before NDP, the market tried tokens, administrators and detection — each attempt was missing something.

Web3 royalty platforms: tokens instead of settlement

The previous wave of “invest in music” platforms built no sustainable economy: tokens fell 95–99% from peak, services shut down or switched to maintenance mode. The authorship-verification niche stayed empty.

NDP's answerNot a token and not a storefront: an identification and settlement protocol over national payment rails. No token — no wallet lock-in, no exchange-rate exposure.

Royalty administrators keep books without hearing the sound

Administration services (the Songtrust / Identifyy class) collect shares from platforms by contract — but never see the actual use of a specific file: there is no detection. Commissions of 15–30%, collection windows up to a year, minimum payout thresholds.

NDP's answerIdentification comes first: a usage event is captured by the fingerprint at the moment of playback; accounting and settlement follow automatically.
Traditional Content IDNDP
Monopoly control inside a single platformAn open identification and settlement protocol
Focus on blocks, strikes, takedownsA rights passport (NDT) embedded in the audio file, travelling with it
Money flows locked inside the platform's ecosystemCascading royalty distribution over national rails
Surveillance and enforcementTransparency, not surveillance: usage data proves the settlement

What works today

An honest status note: the core prototype runs on normaldance.ru; some circuits are in pilot, some are on the roadmap.

Running now

Track deposition (from 490 ₽), public track verification, the Stage 0 registry with ADNA fingerprints, the artist cabinet, the MCP interface for AI agents (21 tools).

Stage 0 pilot

Cascading royalties and the settlement circuit: usage events, splits and receipts run on the pilot stand; payouts go through an SBP emulator with operator reconciliation.

Roadmap

Generative clearing (SPEC §7.17), the circuit for collecting societies (§7.10), digital ruble integration, the Playback Oracle — events at the moment of playback — and sound search.

Numbers and sources

Every figure on this page comes from a primary source or trade press; verified October 2026.

  • IFPI Global Music Report 2026 — global recorded music: $31.7 bn (2025), ifpi.org
  • Yandex Music / Vedomosti (19.12.2025) — Russian streaming: 46 bn ₽ (+23%) in 2025, 76.2 bn ₽ projected by 2029
  • RBC, Moscow News — RAO: 5.2 bn ₽ collected / 3 bn ₽ paid out in 2024; VOIS: 1.5 bn ₽
  • Reuters, Variety, Billboard — Universal/Sony/Warner suspending operations in Russia (March 2022), Sony's full exit (autumn 2022); TASS — Deezer's departure
  • Zvuk × Moscow Music School (2025) — only 15% of musicians earn over 100,000 ₽/month; 76% earn their main income elsewhere
  • bg.ru — ~90% of Russian artists are independent
  • VC.ru, DTF — Splice and DistroKid unavailable for payment from Russia
  • identifyy.com, songtrust.com — pricing and payout terms of royalty administration services (verified 10.2026)
  • Law360, Music Business Worldwide — lawsuits against generative platforms and the AFM suit against UMG/WMG (2026)

FAQ

Is NDP a token or a crypto platform?

No. There is no token and no wallet: NDP is an identification and settlement protocol over national payment rails. The Web3 circuit (the artist's SBT passport) is auxiliary and runs on a test network.

Are you replacing collecting societies?

No — complementing. The protocol provides a machine-readable rights layer and usage statistics; the circuit for societies (SPEC §7.10) offers it to CMOs as distribution technology rather than competing with them.

What if my track derives from someone else's?

Pre-checking shows a registry match before recording and payment. The track registers as a derivative, and the split cascade accounts for the source's share — fair mechanics for samples.

What exactly works right now?

See the “What works today” block above: deposition, verification, the registry and MCP are running; cascading royalties are in pilot; generative clearing and the CMO circuit are on the roadmap. We don't sell the future as the present.

What to do next

Deposit a track — and authorship, splits and cascading royalties become verifiable for any platform, player and AI service.