It's an interesting concept. I think that so long as the musician retains full ownership (the label can hold stakes like the listeners), the only other issue would be ensuring there's a continuous revenue stream through plays. If tokens were sold for each play, like a jukebox, I think it would work better.
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Yeah, this is just the underlying monetization system... any type of conventional revenue stream can still be pursued. The only difference is that whoever wants access to the song (either for person or commercial use) has to buy tokens and either hold them or burn them depending on the contract.