Currently worth an estimated $250 billion and forecasted to almost double over the next few years, the phenomenon known as the “creator economy” refers to the industry that sees individual YouTubers and social media influencers become their own brands.
These ‘one-man brands’ emerged thanks to technology advancements typified by platforms like YouTube and Instagram that allowed normal people to achieve the 15-minutes of fame prophesied by Andy Warhol over half a century ago.
But for every YouTuber like Mr. Beast — who earns around $82 million a year — there are thousands of creators making a paltry earning from their efforts. One recent study found that 96% of creators earned less than $100k a year, while more than 50% of creators earned less than $500 per month.
But now, some clever developments coming out of the blockchain and Web3 space are making it easier for creators to build an audience, and maintain a community of followers regardless of their existing popularity on sites like YouTube.
How Web3 is Boosting the Creator Economy
Much of the narrative surrounding the rise of Web3 platforms is whether they’ll have the power to compete with web2 juggernauts like YouTube and Twitter, but upon closer inspection we see that they don’t really need to.
For example, one Web3 project known as XCAD Network, a creator token and fan loyalty platform, looks to generate new revenue streams for creators which run alongside their existing ventures.
XCAD’s browser plugin enables YouTube creators to issue their own personalized creator tokens which they can then distribute to their fan base in a gamified manner. These creator tokens can be earned by viewers of the creator’s content, effectively rewarding fans for engaging with their favorite creators, while helping build a brand of loyal followers.
Certain stipulations are in place: the viewer must watch a certain percentage of the creator’s content to qualify for the token drop (on XCAD this figure is 80%). Once an audience member has the tokens in their possession, they are free to trade them on the open market, or hold on to them for the long-term and reap the continued benefits of their favorite creator’s growth.
Because the creator burns a set amount of tokens as they accrue more viewers, the remaining tokens become more scarce, and thus, more valuable. This approach allows fans to become stakeholders in the ventures of their favorite creators, while enabling the creator to foster a loyal, engaged fan-base over time.
All of the best tools Web3 has to offer are employed in maximizing the profit potential of both the creator and their audience. For example, both parties can stake their tokens for a set amount of time to earn more tokens, while an integrated decentralized exchange (DEX) enables the fast, easy trade of these tokens with other community members.
Alongside the ability to mint exclusive NFTs crafted from the creator’s highlight moments, all of this adds up to a new, innovative way for individual brand-builders to further monetize their efforts, generate new revenue streams independent of their chosen platforms, and bring their audience on-board as shareholders in their projects.
Presently, most creators don’t earn enough to quit their day jobs. But as innovative solutions springing from the Web3 space continue to make their mark — working alongside existing platforms, rather than against — more and more people might get their chance to extend their own little 15-minutes of fame into a lifetime enterprise.
