Web3 monetization: decentralizing the blueprint for creator-fan relations

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Let’s face it, creator-fan relationships are fragmented. Since the emergence of Web2, fans have grown accustomed to a one-way transactional street of following and consuming, rarely feeling satisfied by their interactions with high profile creators. Celebrities have limited, segmented tools to engage with top fans and manage their personal brand. However, the interpersonal potential of Web3 presents an alternative and solidifies the current dynamic as unidirectional and disengaging.

Social tokens, a type of blockchain token customized and traded for a specific offer, allow creators to develop and maintain a the local economy for their fan network, transferring their service or skill into a social currency. In exchange for purchasing the social token, the fan unlocks a personalized experience such as an exclusive track from a musical artist, a video shoutout from a notable influencer, or a gym session with a famous athlete. By enabling this process, social tokens deepen the convergence of physical and digital experiences and uncover new, dynamic, multi-directional methods of interaction – through this framework, both creator and fan are rewarded.

New means of monetization, new relationships

Social Tokens, also known as Creator Tokens, grant an unattainable level of personal sovereignty over legacy systems. As such, the encoding functionality is only limited by human talent and creativity. This direction presents a new opportunity for the entire spectrum, from nano-influencer to high profile celebrities with massive community followings. More recently, we saw the talk surrounding Joe Rogan and his three-and-a-half-year exclusive deal with audio streaming service Spotify. reportedly worth nearly $200 million usd. With nearly 200 million monthly downloads of Rogan’s podcast, it’s obvious he could outstrip Spotify’s offering if he chooses to directly monetize his community and cut out the middleman. According to Patreon co-founder Sam Yam on The a16z podcastthe average initial pledge amount has increased over time, increasing 20% ​​in recent years and now exceeding $100 per month.

Although many high-profile celebrities are enjoying the benefits of Web3 technology – for example, Paris Hilton launches an NFT collectionand Reese Witherspoon defends digital identity – social tokens will prove much more valuable to independent creators. Once the big stars have their money, monetization and branding are largely outsourced. However, for the less established artist, going from an audience of less than 1000 upwards, receiving just one dollar from each of their fans would support major growth and success through decentralized crowdfunding.

This creates a positive feedback loop in the creator-fan relationship. As the creator becomes more in tune with the support of their community, they can aptly generate engaging and fulfilling content. Thus, the monetization potential of social tokens introduces beneficial autonomy into the careers of emerging creators. Instead of being constrained by celebrity status, traditional and social media structures, the power is now directly in the hands of creators and their respective online communities. Celebrities can choose what and when they want to share, and fans can choose what and when they want to consume, fostering a symbiotic relationship between the two parties. This is where you’ll find the creators most likely to make moves, because building on a social token requires a consistent and concerted effort. Responsibility becomes measurable in relation to the pressure exerted by the community to produce. As a result, content produced is higher quality, engagement is frequent and impactful, and overall fans are getting more value from the celebrity relationship than ever before.

The higher the investment, the higher the reward

By empowering both parties, fans now make a greater contribution to the relationship by participating in a creator’s success and investing in their future and ongoing performance. By choosing to showcase support through stakingthe Web3 alternative to “tracking”, consumers have access to a whole host of exclusive and additional Web3 features offered by the celebrity.

By “staking” your Creator Token, you can gain access to an exclusive fan club. For super fans who have accumulated some interest, they may be able to redeem it for a non-fungible token (NFT) which represents a lifetime subscription or VIP access. As fans use and acquire intangible assets through Web3 activities, they themselves become physical and digital entities. Digital functionality facilitates physical experience and vice versa.

There is a higher risk involved in endorsing a celebrity in the metaverse, as the value may decline the moment an athlete gets injured or an unfortunate controversy erupts in the media. However, as the saying goes, the higher the risk, the higher the reward! Creators recognize this volatility by showing their appreciation for their subscribers’ investments through transparency, greater access, and a more intimate relationship. Fan engagement is becoming the engine of stardom and interactivity is now essential.

The Creator’s Future

While the introduction of social tokens to the celebrity realm is exciting in its empowerment and means of fostering meaningful exchanges, it also leaves many questions such as whether this system will encourage everything to become monetized, and whether all access will behind a paywall, where does that leave those of us who don’t yearn for personalized experiences?

As much of the content available for free today can be blocked, users will be forced to be more selective about who receives their attention. This, however, should not be viewed as a negative, as it is a lesson in mindful consumption. Currently, following 100 people can be done without much consideration, but paying $100 is a much more impactful and prudent decision. Refining our next choices puts the power of curation where it belongs: in the hands of the people. In summary, these social tokens will revolutionize our relationship with creators and media in a way that benefits our daily consumption habits.

The current Web2 system is restricted, inefficient for both creator and fan, and was strategically designed to serve advertisers and the centralized platforms where these relationships exist. Thanks to a system overhaul, creators now have the ability to earn significantly more revenue and deliver a more authentic, engaged, and accessible experience to their communities. In the future, these relationships will be based on proximity, loyalty and personalized content, and the freedom of choice will be unlocked. Fans will directly choose the products and services that celebrities will directly choose to offer. While new means of monetization allow both celebrities and followers to practice autonomy over their contribution to the relationship, these activities take place behind a paywall.

This does not mean that everything on the Internet will migrate behind paywalls. There is a less obvious exclusivity barrier in today’s celebrity dynamics, but once overcome, the possibilities for access are limitless!

Rusty Matveev is CSO at Calaxia


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