The adoption of Web3 is leveling the playing field for content creators.
In 2020, the co-founders of Calaxy, Spencer Dinwiddieand Solo Ceesay is on a mission to destabilize the stagnant Web2 social media framework and redirect value into the hands of those who fuel its economy – the creators. Over the past couple of years, data on colossal revenue cuts from legacy social platforms has come to light. More recently, the State of Crypto Report 2022 published by Silicon Valley giant Andreeseen Horowitz (a16z), reiterated these failings. Summarizing its analysis of blockchain industry trends, a16z said that, “web3 is much better for creators than web2.”
🗣️ SAY IT LOUDER FOR PEOPLE IN THE REAR
Web3 is defended for its community and decentralized democracy. While some social media oligarchs are still claiming eye-watering valuations, Web3 is the opportunity the creator community has been waiting for… a chance to level the playing field and dictate a fairer distribution of profits generated from content *they are * create.
Despite Web2 HODLing a larger community of users than Web3, the previous iteration of the World Wide Web lacked the right framework to adequately reward its content creators. A16z calculated that based on NFT sales per capita, Web3 pays an average of $174,000 per creator. It’s easy to see why content creators are looking to digital assets as a new way to monetize directly with their fans compared to the meager $2.37 paid by YouTube per channel, $636 per Spotify artist, or just $0.10 per Meta. per account.
Contributing to this drastic revenue misalignment is the reduction in revenue taken from creators by these legacy companies, which was recently put into perspective by US Congressman Ritchie Torres who said: “You know something is seriously wrong with our economy when Big Tech has a higher turnout than the Mafia.”
For example, YouTube takes a whopping 45% of its creators, while Apple’s App Store collects 30%. By comparison, OpenSea – Web3’s largest NFT marketplace – has a modest fee of 2.5% per NFT sale. It quickly becomes clear that the decentralized foundations of Web3 guarantee the autonomy of creators over their sources of income, allowing them to benefit directly from the support of their fans without exorbitant third-party costs.
Having witnessed these injustices on a local level, we created Calaxy to give creators the agency to monetize their brands on their terms, and the by-product is a cycle that fosters a more satisfied community of users. Calaxy users have the opportunity to unlock more valuable and exciting content from their favorite celebrities and get rewarded for their loyalty. Our revenue model is simple and our approach ensures that creators and fans can engage in more meaningful and personalized experiences in our ecosystem. (If you want to see what’s under the hood, you can read more about the mechanics of how we do it in The Creator’s Galaxy white paper.)
The State of Crypto report predicts that Web3 is on the right trajectory to disperse decentralized and open-source autonomy across the internet, but such groundbreaking disruptions take time to set in. If you compare the evolution of Web3 to the Web 2 timeline, we’re not much further along than the Internet when Katie Couric, Bryant Gumbel, and Elizabeth Vargas were trying to figure out what it was.
As more and more people discover the benefits of Web3, we expect a large number of content creators to migrate to decentralized platforms to the tune of approximately one billion users by 2031. That’s a billion people who can embrace autonomy over creator-fan relationships, monetization, and ultimately their careers.
The calaxie is coming, and it brings with it the economy of the creators.