Cryptocurrency – The Future of the Creator Economy

Content creators have long benefited from big tech’s monetization of social media platforms. However, several recent studies have found that the algorithms designed by these companies tend to benefit the platform rather than the creator. As the availability of low-cost decentralized infrastructure continues to grow, crypto could come to the aid of creators like these who face the inevitable oncoming challenges they’ll face from centralized platforms in the future. 

Democratizing the Creator Economy 

The $100 billion creator economy, consisting of everyone from YouTubers to TikTok influencers, relies on revenue from mediums like product placements, advertisements, and even direct support from their fans. Despite its massive scale, this economy remains vulnerable to the decisions made by a handful of platforms that serve as the gatekeepers to their financial livelihoods.

While these centralized platforms have provided creators with valuable services, including tools to create their content, hosting services, and discovery, there is an imbalance in power between the networks and the community members that make up their user base. One great use case of this is the recent payout controversies seen by adult creator platform OnlyFans.

The focus of big tech in recent years has always been to commoditize creators in a bid to keep users glued to their screens. In short, working with influencers continues to serve the performance KPIs of their advertisers. However, there have been plenty of instances where platforms have banned users, made controversial changes to their privacy policies, and autonomously decided what is and is not misinformation. Decentralized Blockchain technology could be the key to eliminating these platforms and empowering creators & users alike. It’s nature will ensure that one-person brands get compensated fair while maintaining an independent platform to share their opinions. Plus, the essential privacy and security of the everyday user remains tantamount.

Creating New Avenues for Monetization 

Money earned from digital content creation has exploded in the last decade. But yet, it is harder than ever to meet monetization standards to support a full-time career. YouTube, Twitch, Facebook, and TikTok have a minimum audience requirement for users to monetize content, while creator-focused funding platforms such as Patreon and Gumroad have stringent listing rules and high fees. Incorporating cryptocurrency into their payment options and experimenting with projects like NFTs enables creators to explore different avenues to monetize their content while remaining independent. The blockchain makes it possible to build micro-communities, serving smaller niches that would not be economically viable in a centralized system.

Crypto is a game-changer for creatives, who thrive on more freedom to monetize their work and the chance to launch their economies. Furthermore, using cryptocurrencies as a monetization tool helps creators gain access to a global network of potential paying fans, some of whom have acquired millions of dollars in new wealth over the last few years. In addition to issuing tokens, NFTs are beneficial for some segments of creators, such as more traditional artists whose mediums were not previously accessible online. The NFT market, worth $2.7 billion, provides lucrative opportunities for creators to access new revenue streams for their work. Furthermore, NFTs guarantee recognition for artists, a new concept for the internet, while also putting them in the position to earn royalties on every future sale.

Creating New Experiences for Fans 

While cryptocurrencies and NFTs unlock new monetization opportunities, these technologies also provide new ways for fans to support and consume the content shared by their favorite artists. Fans who buy tokens to support their favorite creators can certify their fandom or gain access to exclusive experiences and rare merchandise. In addition, interactive NFTs, which change over time based on a fan’s modification to the item, can be in the form of autographs from an artist on a digital collectible album. They can, most importantly, grow in value over time due to their scarcity. Decentralized tools, such as NFT tickets, prevent scalpers from reselling tickets while giving attendees a unique souvenir. Fans have even received access to private groups and direct messages with their favorite influencers.