The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

Would you like to earn 45.6 billion won if you play games?

Recently, the world’s hottest drama is none other than “Squid Game”. Since its launch on Netflix on September 17, “Squid Game” has won the series popularity championship in more than 190 countries and regions covered by Netflix in just one month, driving the development of its surrounding economies around the world.

While the original drama was so popular, the developers on the game creation platform Roblox imitated the gameplay in the Korean drama “Squid Game” and created the same game. Since its launch on September 23, more than 100 million people have paid attention to this game.

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

The game does not come from the IP publisher of the film and television drama, but from the development of Roblox ordinary players, which gives gamers great freedom in the field of game self-made.

Prior to this, there have been countless ordinary gamers who have developed a number of explosive games through Roblox. A 21-year-old senior from Duke University, Alex Balfanz, used the income from a Roblox game he made three years ago to pay for his tuition. Jailbreak is one of the most popular games on Roblox, and it earned Alex nearly $10 million.

In the 1950s, children grew up with Lego blocks, a world centered on manufacturing and industry; in the 1970s, children grew up playing with personal computers such as Commodore 64, and a generation of entrepreneurs such as Bill Gates and Jobs were working Rise in this wave; today’s children grow up in Roblox, which reflects the rise of low-code/no-code in the corporate ecosystem and shows that everyone can now operate and create software.

Younger children may grow up in NFT and GameFi. Weird Whales (weird whales) is the second NFT collection released by 12-year-old boy Benyamin Ahmed in July this year. 3350 pixel whales were sold in less than a day. Out of stock, the total price is about 2.5 million US dollars.

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

The creator economy and NFT are the release of human potential on a large scale. Even if certain assets are in a short-term bubble, we are unstoppable towards a trend-individuals are more important than institutions. Everyone can become a developer and creator.

The following is the content of this article, and it is recommended to read it according to the main points.

01. What is the creator economy?

02. The development and trend of creator economy

  • Web 1.0 (approximately 1990-2005)
  • Web 2.0 (approximately 2005-2020)
  • Web 3.0 (beginning)

03. Why now?

04. Creator Economy Market Layout

  • How big is the creator economy?
  • Creator’s Toolbox

05. Creator’s Dilemma and Solutions

  • The game between creators and gatekeepers
  • Creator’s middle class trap

06. How does NFT redefine the creator economy?

07. The economic case of creators in the Web 3.0 era: Mirror

08. Conclusion

What is the creator economy?

The creator economy (creator economy) refers to the enterprise and ecology built around independent creators, which consists of several parts:

1) Content creators, community builders, KOL/influnecer and other groups can realize commercialization through knowledge, skills and fans, and are not subject to the company’s employment system and geographical restrictions;

2) Platform companies, the best platforms will convert users into creators, retain and increase the participation of these creators;

3) Software and financial tools that help creators grow and profit.

Concepts that are closely linked to the creator economy include the attention economy, the passion economy, and the sharing economy. Among them, the attention economy is an important reason for the creation of the creator economy: the digital media landscape has undergone tremendous changes in the past decade. In China, the length of time spent watching live broadcast exceeds the total length of watching TV. In the United States, users under the age of 25 also spend more time watching Twitch and YouTube Live than TV. New content creators such as anchors and Internet celebrities are grabbing the attention previously allocated to traditional media and changing consumer spending habits.

The meaning of the enthusiasm economy is similar to the creator economy, but it also includes people who make money through skills and interests, such as Axie Infinity gamers, Ube drivers, etc.

The creator economy has some characteristics:

  • For everyone, regard personality as a feature, and everyone makes money through interest and skills;
  • Focus on digital products and virtual services, creating a new work situation;
  • Creators gain power in the media ecosystem because fans seek to connect with individuals rather than platforms;
  • The monetization ecology continues to evolve, with the development of hierarchical subscriptions, fan communities, DeFi and NFT and other encryption technologies, allowing creators to obtain more direct and diversified benefits.

The development and trend of the creator economy

For most of human history, most people have been producing things or cultivating land. But the two most important outputs of the 21st century are code and content. The code creates a powerful tool that, among other things, helps distribute content. The content supports a powerful narrative and, among other things, helps to place more economic activity under the control of software tools. The code itself is the content, and the content—language—is the code itself. Both are designed to make abstract ideas workable.

Code and content constitute the Internet. According to the characteristics and paradigms of different stages of the Internet era, we can mark the historical development of the Internet as the Web 1.0, 2.0, and 3.0 eras.

Web 1.0 (approximately 1990-2005)

Web 1.0 refers to the early read-only Internet. At that time, the page was very simple. For example, an e-commerce was just a directory, and there was only one email address for users to make purchases.

There was no creator economy in this period, but website construction platforms such as Squarespace (2003), WordPress (2003) and Wix (2006) allowed every barber shop, restaurant, and clothing store to create their own website. This is also in line with the spirit of creator economy.

Web 2.0 (approximately 2005-2020)

In the Web 2.0 era, the creator community has been magnified like the Big Bang for an unprecedented rate. YouTube, Instagram, iTunes, Spotify, and recently Snapchat, Twitter, Medium, Twitch, TikTok, Xiaohongshu and other platforms have invested heavily in recommendation algorithms to help creators be discovered and build audiences— they solve the content distribution problem for creators , So that creators are no longer at the mercy of publishing houses, galleries and other large production companies.

In addition to content producers, important companies centered on the creator economy have also emerged in the e-commerce and game fields.

In 2010, Bessemer invested in Shopify’s memo wrote:

“Shopify is a SaaS application for building and running online stores. In many ways, its advantage lies in its simplicity, which is very suitable for small businesses. A non-technical person can start from A professional-looking online store accepts orders”.

In the game creation platform, game engines such as Unity and Unreal (engines of Epic Games) have appeared in the high-end field, allowing game developers to automatically program complex physical characteristics; Roblox and Minecraft have appeared in the “low-code/no-code” field. Minecraft is relatively harder to play and requires some coding knowledge. “Minecraft” is the second most searched term on YouTube after “music” because players are looking for tutorials.

At this stage, Internet giants became the biggest beneficiaries. Due to the huge scale effect of the Internet, new platforms and channels have emerged that are hundreds and thousands of times larger than traditional content publishing and distribution organizations. As a powerful party that can determine the flow and income distribution method, large platforms are the biggest beneficiaries of the creators’ economic prosperity at this stage.

Platforms do not always consider the best interests of content contributors, and algorithms also cause the problem of information cocoon rooms. Therefore, creators learned to cross-promote and publish content on multiple platforms to minimize “platform risk.” So as not to be hurt by platform decline, priority changes, function deletion, etc.

However, with the gradual maturity of the creator economy, on the one hand, large companies have become more and more aware of the importance of creators; Exploring the path of monetization by themselves.

Large companies have introduced more incentives to keep creators on the platform:

  • Facebook CEO Zuckerberg announced this year that Instagram will build a set of influence tools, including a creator store, local affiliate links, and a market that connects influencers and brands to take advantage of these opportunities.
  • Twitter has launched a super follow feature that allows avid Twitter users to charge for exclusive tweets and pay for audio chat rooms.
  • TikTok has established a local market to connect advertisers with creators, and has launched a $200 million fund to invest in its top creators.
  • In addition to paying for advertising revenue, YouTube has also taken the route of a creator fund, providing creators with a $100 million fund on its TikTok clone product Shorts.
  • Spotify said that in order to encourage podcasters to use subscription services, they will not cut their profits before 2023, and will start charging 5% after 2023.
  • Even companies like GitHub are getting sponsorships, which operate in a similar way to Patreon’s revolving tipping model.

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

And some new platforms try to replace giants, attract creators with more direct subscription methods and higher incentives:

  • Authors of Substack, the popular subscription communication platform this year, will receive 90% of subscription revenue;
  • The host of the game live broadcast platform Twitch can get 50% of the subscription fee;
  • Creators of the content creation platform Patreon can get 88% ~ 95% of the subscription fee;
  • Creators of content subscription platform OnlyFans can get 80% of revenue.

In general, after developing a fan base outside the platform, creators can make money by selling high-quality content, merchandise, coaching, consulting, etc., in addition to advertising. This allows creators to focus on pleasing their biggest fans and producing more unique niche content instead of desperately finding as many audiences as possible and producing mass content.

A general trend is that over time, creators’ income sources have become more diversified and funded directly by their fans. These are all mild improvements that some entrepreneurial platforms have tried to make on the road of “decentralization” in the Web 2.0 era.

Web 3.0 (beginning)

We are at the beginning of the Web 3.0 era. Web 3.0 combines the decentralization and community governance spirit of Web 1.0 with the advanced and modern functions of Web 2.0. Web 3 is the Internet “owned” by builders and users, and is motivated by Token (by Packy McCormick).

In Web 3.0, ownership and control are decentralized. Users and builders can “own” Internet services by owning NFT and FT. NFT gives users property rights, that is, the ability to “own” part of the Internet.

The previous discussion is the mainstream Web2.0 creator economy, and if the definition is expanded to Web3.0, things will become even more crazy. With the rapid development of US$3.4 million NFT, Defi and DAO, artists and celebrities are earning wealth, while decentralized finance is releasing individual value. Although bubbles seem to be many, a bigger transformation is taking place, which will be discussed further in this article.

Why now?

The creator economy has entered a new boom, supported by three background conditions:

  • Better software reduces the cost of starting a business and dealing with the market. Whether it is a trading platform, or vertical tools, game engines, low-code tools, etc., all empower individuals with greater energy. This point is discussed in the full text, so I won’t repeat it.
  • The development of encryption technology in DeFi and NFT will reward creators and influential people. As the creator market grows, many workers may become more like project nomads rather than full-time employees. Crowds of talents, communities and capital have flocked from one project to another. DeFi, through encryption technology, allows talents and contributors to easily flow between projects like today’s money. If DeFi and encryption technology are the power that allows creators to tie people and capital together when needed, reducing the cost of search, information, and bargaining, then NFT is the power to deal with trade secrets, allowing creators to share seamlessly And remix intellectual property rights.

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

  • This is an era of personal influence. In the fields of media, entertainment, education, e-commerce, and finance, power is shifting to individuals. A person, with the support of improved tools and their own personal influence, can truly compete with mature institutions for eyeballs and money. Transform personal influence and existing social channels into sales, especially when trusted creators form a collective and try to share advantages with supporters in new ways. Not only in social media, the same shift has also occurred in public market investment. SPACs are a manifestation of personal sponsors having the same influence as investment banks. Public stocks and common stocks allow people to follow investors they trust, and Composer (NB portfolio company) will take it one step further, allowing you to easily subscribe to the strategies of your favorite individual investors.

Creator Economy Market Territory

How big is the creator economy?

Considering the wide influence of the term “creator”, the size of the creator economy is difficult to accurately estimate, from amateurs selling documents to professional video bloggers, and other people who sell various forms of works. In it. According to the statistics of SignalFire, there are approximately 50 million creators on the Internet.

In terms of creator platforms, we can see that all major platforms have funds flowing into the field:

  • According to Forbes, the best performing YouTube channel received US$211 million in revenue from June 2019 to June 2020;
  • Famous Instagram bloggers like Huda Kattan or Eleonora Pons can net up to 6 digits per post;
  • Top writers on Substack can earn up to $1 million in income each year;
  • Since 2011, creators of creator platform Gumroad have earned more than US$460 million in revenue by selling content on the platform.

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

Source: Gumroad

On the corporate side, according to Mediakix data, brands are expected to spend as much as $15 billion on influencer marketing by 2022.

The mapping of CB Insights includes 125 companies focused on creators. These companies serve every step of the creator’s work cycle, from content creation to off-platform monetization to audience management.

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

In the first half of 2021, creator-centric companies received US$1.3 billion in financing, almost three times the amount in 2020 (US$464 million).

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

With the surge in investment in this area, some companies have risen to or near the status of unicorns, including:

  • Patreon: Member platform raised US$155 million in Series F financing with US$4 billion;
  • Kajabi: The online course platform is the company with the most funds on our market map, attracting US$550 million in investment at a valuation of US$2 billion;
  • Cameo: The personalized video reservation platform has received more than 166 million U.S. dollars in total funding, valued at 1 billion U.S. dollars;
  • Substack: This year’s super hot writer platform, raised a total of 82 million US dollars at a valuation of 650 million US dollars;
  • VSCO: After raising US$90 million in funding, VSCO is valued at US$550 million;
  • Splice: A $500 million audio editing platform, supported by Union Square Ventures, True Ventures, First Round Capital and Lerer Hippeau Ventures.

     

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

And if you consider the art creator market represented by NFT, the scale will become even larger. In the past few months, the transaction volume of NFT reached 13 billion U.S. dollars. This is still a very new and speculative market, but it does provide creators with a real opportunity to gain wealth through creation, and to a large extent lowers the threshold of creation.

Correspondingly, the size of the traditional art collection market is 400 billion U.S. dollars.

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

Creator’s Toolbox

From the perspective of creators’ usage scenarios, many of the creator economic companies that have received the most funds and attention are designed for specific media, which is equivalent to the creator economy of vertical SaaS.

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

There are also horizontal companies that support creation or monetization.

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

Descript is used for audio and video editing, Patreon and Buy Me a Coffee are used for subscription and tipping, Stripe is used for payment, Stir lets creators manage their finances and cooperation, Linktree and Beacons provide creators with one for all channels Central home.

Together, these companies focus on helping creators create, develop, manage, and monetize their audiences. This is very important. The main weapon of a solo player is their ability to build relationships and distribute products on a scale.

For example, to start a paid blog business, you need to register for Substack, write with Google Docs, make (beautiful) graphics with Figma, register a collection account with Stripe Atlas, set up a bank account with Mercury, record and edit podcasts on Descript, Publish on Anchor and promote it on Twitter.

There is also a third type of company, which is what Nikhil Basu Trivedi (NBT) calls “BiaB” companies. The core concept is to allow users to build their own small businesses on a platform. These companies include some of the media businesses mentioned above, but also extend to the physical world, including day care, grocery stores, and even trucking.

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

These companies provide incredible freedom, ownership, and flexibility to a new class of digital-first small business owners, and many people have used them to create financial independence and even intergenerational wealth for themselves and their families. Ankur Nagpal, the founder of Teachable, said on Twitter that the top 10 creators on Teachable made a total of more than 100 million U.S. dollars!

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

Creator’s dilemma and solution

The game between creators and gatekeepers

As mentioned earlier, the emergence of Web 2.0 redefines content producers and has carried out a profound change in the content industry: content producers have changed from a small number of experts or professional institutions to owners, while large platforms use distribution and algorithm mechanisms. , Which basically monopolized the creator’s labor and the way the audience received information, and became the biggest winner.

Bezos wrote a paragraph in a letter to Amazon shareholders in 2011. Bezos launched three seemingly unrelated Amazon programs-Amazon Web Services, Fulfillment by Amazon, and Kindle Direct Publishing-each of which is based on the same premise: remove the gate keeper :

“I emphasize the self-service nature of these platforms because it is important, and the reason I think is somewhat unobvious: even a well-meaning gatekeeper will slow down innovation. When a platform is self-service, even impossible ideas can be tried , Because no expert janitor always says: “This will never work! “Guess what-many impossible ideas really work, and society is the beneficiary of this diversity.”

Even well-meaning gatekeepers can slow down innovation.

The promise of the Internet is to eliminate gatekeepers. Facebook and Twitter replaced newspaper editors, Spotify and Soundcloud were record companies, and YouTube and TikTok were studio leaders. But by cutting off middlemen, large Internet platforms become middlemen.

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

Although the Internet gives people the illusion of allowing creators to directly enter the community, the platform has actually become the new gatekeeper. This is determined by a misplaced incentive mechanism in the DNA: these platforms are built for advertisers, not for creators and communities. For example, Instagram has a 100% acceptance rate—in other words, Instagram never bothers to build tools for its creators to make money.

Ads are not always bad, they can be an important part of a company’s or creator’s monetization tool arsenal. However, the center-centered business model is the source of many problems today.

The creator economy was previously the attention economy. The most valuable product in this model is the user’s attention, which is considered a valuable and scarce resource. The term was coined by Nobel Prize winner Herbert A. Simon. Michael Goldhaber further explored this concept in 1997. He wrote, “Economy will shift from a material-based model to an attention-based model. Model of force.”

In this model, the content consumed by users is mainly determined by large companies such as Google, Apple, and Facebook. Moreover, in this model, your attention ultimately means the revenue of these companies. The seemingly “normal” parts of our daily life will have some negative effects, including passive consumption, the constant “need” to use our information, and the so-called “unconscious sliding”.

To solve this problem, a decentralized creator economy is needed, and it is clear that consumers’ attention is on people, not on platforms. That is to weaken the intermediary, or even go to the intermediary.

There are many startups that help creators increase their monetization rate or directly face their fans. For example, on YouTube, creators only earn $3 to $5 per 1,000 video views. The Twitch subscription fee is divided into tiers, $4.99, $9.99 and $24.99 per month. If each Twitch user accounts for one pageview, then its monetization rate is at least 1,000 times that of YouTube’s revenue per meter (RPM) model.

Furthermore, Streamloots enables game broadcasters to monetize their super fans to a higher degree The average buyer who interacts with the streamer on Streamloots spends $26 a month, and spends $6 on a Twitch subscription. For streamers, Streamloots accounted for 62% of total revenue, but only 27% of buyers. Customers are willing to spend more money to approach creators instead of subscribing to show passive support.

Subscribing to fan communities (such as Mighty, Circle) and paying to visit creators (such as Cameo, Looped, OnlyFans) are also helping creators monetize more directly. What are the benefits of this? Creators no longer need to be kidnapped by platform algorithms to produce mass content, but only need to produce personalized content that truly serves their core fans.

In the field of cryptocurrency, social tokens also embody a similar concept——

Social tokens allow fans to invest directly in their favorite idols. And enjoy the benefits of specific rights and idol appreciation. Social tokens better express the breadth and depth of the community. In the future, we will no longer measure the influence of the creator based on the amount of followers of the creator on Instagram, but will focus on her market value. Kim Kardashian may launch $KIM tokens, KIM in circulation is 10 million U.S. dollars, and the price of each transaction is 100 U.S. dollars. Bringing Kim’s market value to 1 billion US dollars.

Today, social tokens have not yet entered the field of vision of many people (no NFT has attracted much attention). But social tokens are attractive because they combine investment, sponsorship, and access in a unique way—all in a cross-platform, unified architecture. The next era of the Internet is shifting from advertising (from attention as a product) to digital commerce in which individuals and communities use local currencies. Social tokens will support this new digital economy.

Middle-class trap for creators

In 2016, Musical.ly’s co-CEO Alex Zhu (later the vice president of product at Bytedance) once said that launching a new platform is like building a new country. For users to transfer from a mature network with rigid economic and social classes to a new network, the possibility of success is required-the allure of the American dream. In addition, the new social network must create upward mobility for all users to “ensure the emergence of a middle class.”

However, on today’s platforms, the American dream is very obvious, but it is difficult for the middle class to realize it- top creators get 6 to 8 figures, but most creators-the “middle class”-have less a lot of. On OnlyFans, the top 1% of creators get a third of the profits, and most people earn less than $145 a month. In 2017, only 2% of Patreon creators earned more than the US minimum wage. At Spotify, the top 43,000 artists—about 1.4% of the platform’s population—receive 90% of royalties, with an average artist earning $22,395 per quarter. The remaining 3 million creators, or 98.6% of artists, earn only $36 per artist per quarter.

In the long run, this is not sustainable for the platform.

Even in the game field, success is increasingly concentrated on a few game creators. According to an article by Ran Mo, EA Product Manager, on Roblox, even if the total usage increases, the concentration of the top is also increasing: in 2018, the top games on Roblox accounted for 8-10% of concurrent users, and in 2020, the top Games account for more than 20% to 25% of concurrent users. He proposed two reasons for this concentration: the lack of an upper limit to participate in the game, and the social nature of the game has led to a winner-takes-all network effect.

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

Source: Roblox, via Ran Mo

“When creator platforms provide anyone with opportunities for growth and success, they will flourish,” Li Jin wrote. “The lower the concentration of wealth, the lower the concentration of wealth means that potential competitors can dig out top creators and threaten the entire enterprise. The smaller the risk.”

Helping creators flourish in the “long tail” of content creation is a new opportunity for major companies to innovate. According to The Economist, reporter Craig Morgan was fired last year, but his Substack has more than 1,000 paid subscribers, each paying $5 a month. Not all creators will bring amazing wealth, but they can at least make a living on their own.

With the emergence of new tools, the issue of the property rights held by creators still exists-and the subsequent transformation of the power structure of the platform itself. Super-popular influencers and creators may escape the control of big platforms, but where do other “middle-class” creators go? Will those potential creators still have the motivation to actively create?

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

Li Jin proposed 10 solutions in an article to increase the number of “middle class” creators on the platform. These include allowing creators to use the power of super fans (creating income does not depend on the size of fans, but the depth of fan participation), creating more passive income opportunities for creators, and so on.

For example, at Gumroad, an e-commerce website that enables creators to sell software, e-books, PDFs, and other digital products has an extreme power law of revenue. Among the 19,480 creators who had income in September 2020, 9% had an income of more than US$1,000 that month; 1% had an income of more than US$10,000; and only 10 (or 0.05%) had an income of more than US$100,000. Although there is a significant concentration of income, for all creators, sales representatives have passive income (after the product is initially created), allowing creators to expand their income without investing additional time. When income is increasing, creators can spend time on other sources of income and create a combination of various income streams.

More importantly, in the creator world monopolized by platforms and algorithms in the past, creators had to work hard to cater to platform algorithms and popular content preferences in order to avoid the “middle class trap”, which changed the culture and information of the entire society. It must be highly homogenized and fall into the information cocoon room. And when the economic value created by the work is owned by the creator to a greater extent, the creator will only rely on a small number of deep and loyal fans to maintain a good economic return instead of having to follow “hot spots” all the time.

This is of great significance for liberating people from the information cocoon and promoting the diversification and prosperity of the ideological and cultural development of the whole society. The NFT, which directly binds “work” and “value”, happens to have great potential in the innovation of the creator’s economy.

How NFT redefines the creator economy

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

NFT is an encrypted token that proves the authenticity, ownership and scarcity of digital assets.

NFT enables users to own objects, which can be art, photos, code, music, text, game objects, credentials, governance rights, access passes, and anything else that people can imagine in the future. NFT exists on blockchains such as Ethereum. Ethereum is a decentralized global computer owned and operated by users on the network. Blockchain is a special computer that anyone can access but no one can own.

NFT has brought about several significant changes to the creator economy:

  • NFT puts ownership in the first place, and creative and unique ideas will be more valuable because it will be completely owned by the creator. Based on the innate perception of human beings, owning things is a kind of value. NFT enables fans to connect experience with value. Creators can use NFT to create unique ways to pay and interact with fans.
  • NFTs and smart contracts have the potential to change the way people manage intellectual property (“IP”). Digital art and fashion now have provable ownership, which has also spawned more diverse artistic creations. Artists can gain wealth through digital/blockchain creation and improve their lives.
  • NFT has changed the profit distribution method of the traditional creator economy. The art trading platform is the most direct for the royalty reform of artists. We introduced the company OpenSea in detail last week. As the largest comprehensive trading platform in the NFT field, every time on the platform The transaction flow can bring a share to the artist. Furthermore, in the interest chain of “creator-intermediary-social media”, “intermediary” may be completely eliminated.

Today we rely on the blunt tool of intellectual property law to protect creations, and in the future it can be done through NFT. Whenever digital assets are used, creators will get a reasonable distribution of benefits instead of the right to sue.

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

Here are a few specific examples:

  • music. The songs supported by ERC721 are composed of chorus, lyrics, beats and hooks supported by ERC1155, which can be used to make literal mixes and automatically reward the original author.
  • Research. Today, the success of a research paper is measured by the number and quality of citations. If the research paper is supported by an NFT, it can be used for other academic research for free, but when it is used for commercial purposes, the researcher will be paid.
  • Code. If it is not pure open source code, but a code block supported by NFT that allows remixing and improvement, as long as the code is used for new commercial code, the original author of the code is paid.
  • picture. The photos or illustrations used in website design or marketing materials can be paid to the original author.

The possibilities are endless, but making intellectual property more flexible and remixable will release benefits far beyond having the best dunk footage of your favorite NBA star. NFTs can help build a middle class in the creator economy, reward each time an original author’s work is used, liberate their earning power from labor, and reduce those who wish to freely use the best investment to build a trillion-dollar listing Transaction costs of the company’s sole proprietorship.

The economic case of creators in the Web 3.0 era: Mirror

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

Mirror, the smash hit “crypto Substack”, has just raised more than $10 million in funds from A16Z and other companies. It looks more like the “Kickstarter+Patreon+Substack” in the crypto field.

At first glance, Mirror really looks like Substack-it has a publishing tool and a way to generate revenue. The most obvious difference is that it has a lot of fancy cryptocurrency tools to run crowdfunding, generate NFTs for your content, and get tips and other revenue-generating methods.

It is not only decentralized, but also integrates encrypted native currency from the beginning, and allows creators to have more control and ownership by binding digital identities. These features have allowed Mirror to have multiple attributes of digital native information carriers that many Internet applications lack since its birth, including programmability, interoperability, composability, virality, and transferability, thereby realizing its value exchange. possible.

We can see that it has:

  • A unique creator ID: I use my public Ethereum address, owned by a private key, and published on Mirror.
  • An open content database connected to my ID: Mirror stores content on a decentralized storage system called Arweave. If Mirror is closed tomorrow, I can access all my articles by querying Arweave to get posts signed by my Ethereum address.
  • Open social and economic charts: All important relationships established on Mirror are publicly stored. The addition of new members to the platform is carried out through their $WRITE competition, which is a decentralized, publicly viewable vote, and existing members have a higher weight. When I share the proceeds of my article with another writer, or when the audience buys NFTs in crowdfunding through my article, all these things are signed and stored publicly with an Ethereum address. Anyone can build an application on the basis of these data, for example, a “Crunchbase for creators”, which shows how much money each creator has received over a period of time, and the source of these funds.
  • Standards: Mirror both use and help establish open standards for their use of core technologies. They use Ethereum standards, such as ERC20 for homogenization tokens, ERC721 for NFT, signature standards for data verification and so on. There are no standards for other areas such as NFT sales and royalties. Mirror is working hard to establish standards that can be used by others. And better standards mean more adoption of these new technologies, and then benefit Mirror, because it is the place with the best creator experience, and these technologies can be used to build a business.

It can be seen that owning content is not important to Mirror’s strategic moat. What makes Mirror unique, and making it a sticky product for creators, is that it provides many ways to build business that are not available elsewhere. Mirror greatly reduces the coordination cost of creating a complex online business as a writer-hidden behind the seemingly content platform, it is actually a powerful encryption support tool that integrates crowdfunding, e-commerce and media platforms. It is a combination of Kickstarter, Patreon and Substack.

To give a more specific example, a film team has just raised $2 million to produce a documentary about Ethereum. Crowdfunding platforms like Kickstarter have a donation limit of $10,000, require a bank account, and only support certain jurisdictions. The Mirror’s cryptocurrency native crowdfunding tool has a programmable donation limit (the maximum donation is more than 200,000 US dollars), only a cryptocurrency wallet is required, and it is open to anyone with an Internet connection.

Patrick Rivera, an engineer at Mirror, calls it the “protocol economy”. Because of the user experience issues that are common in cryptocurrencies, they must establish vertical solutions. Vertical integration enables Mirror to establish simple and effective channels among powerful agreements that will become their strategic moat in the future.

Cryptocurrency products without vertical integration will eventually cause users to get lost in different encryption applications. To integrate the user journey into a single application, so that encryption products can significantly improve the user experience to promote better acquisition, participation and retention, the key is to use open code and data standards to build a high-quality integrated experience .

As can be seen from the open structure of Mirror, the transition from a publishing company to managing a vibrant protocol economy has little to do with the content itself. More importantly, it has to establish developer tools for the team to use their contracts and content tools. . This is about SDK, API, sub-pictures and documentation. Their competitors will be rivals like Stripe and Stir, not Substack. There may be multiple different applications that deal with release and distribution, through the business layer of Mirror to deal with issues such as funding, governance, and revenue split.

The creators represented by Roblox and NFT break through the platform and algorithm to establish a new order

Concluding remarks

The Internet provides a convenient matching function for creators and potential audiences, enabling businesses such as new media, short videos, various blogs, and payment for knowledge to flourish, and promote the rapid development of the cultural industry economy. If the niche cultural field can be sustainably developed through a good creator economic model and mature infrastructure, the economic value of the overall contribution of this long tail market may not be underestimated.

Blockchain and NFT provide it with some benefits and new directions for exploration. For example, a decentralized incentive mechanism can reduce customer acquisition costs, and creators can increase user stickiness by issuing social tokens to loyal fans, and even increase user stickiness. Part of the right to profit from copyright is allocated to the community to promote the community’s co-creation model. Market transparency can give creators the ability to control the market, allowing them to truly transition from a platform-driven copyright monetization model to a self-dominated monetization model. In the future, creative works may also become social portals and exhibit multi-functional properties at different stages of the life cycle.

But it must be mentioned that these imaginations currently have some obstacles in reality: simply anchoring a certain NFT, there is the possibility of being copied, modified, and deleted, and cannot resist plagiarism and piracy attacks; lack of ownership of the NFT statement A clear definition means that the source of value of NFT is not clear, which brings potential risks to the market; it may also lead to “bad money driving out good money”, which will force original creators to reduce profits, contrary to the original intention of creating a high-quality cultural and creative community ; The resolution mechanism for original disputes and legal conflicts still relies on third-party platforms to set account systems and customer terms to restrict them. The risks of personal privacy leakage related to intermediate platforms are still pain points.

In short, people follow people, not companies. Large companies have long had advantages, because building large-scale products requires all coordination. As a result, they received a disproportionate share of profits. Even creator economic platforms like Substack and TikTok treat creators themselves as commoditized supplies. Now that everything is changing, we believe that the convergence of content creation and the encryption economy will mean that creators themselves will get the largest share of profits. We are very happy to see more individuals commoditizing platforms, rather than platforms commoditizing people.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-creators-represented-by-roblox-and-nft-break-through-the-platform-and-algorithm-to-establish-a-new-order/
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