We are in the era of the creator’s economy, and creators need a business model to help them make money. Since one of the cornerstones of blockchain and DeFi are microtransactions, they could enable new forms of payment for content creators.
Now, with the rise of NFTs, we could have even more innovative opportunities for this economy as they offer unique ownership and inherited fees for future trading of these unique pieces.
Here are some quick facts about the current state of the creator’s economy:
- $800 million in venture capital has been invested into Creator Economy startups
- 46% of Creators who have been building an audience for 4+ years earn over $20k annually across their monetized channels.
- Influencer MarketingHub estimates the total Creator Economy market size to be around $104.2 Billion and on par with a substantial growth trajectory similar to the Gig Economy. That’s a future valuation of TRILLIONS of dollars.
- Of the surveyed Creators that considered themselves full time Creators, ie. content creation is their main source of income – 78% make more than $23,500 annually.
- The power of sponsorships should not be underestimated. 77% of Creators depend on brand deals, that’s 3x as many as every other revenue source combined.
- There is not a definite correlation between follower count and income. Between the $50-100k and $500k-1M reported income levels from creating content, there are half a million dollars in income difference, but a difference of only 1.8K more followers.
Crypto Meets Creators
Let us now dive into various concepts that serve as a connector between the creator’s economy and blockchain technology.
Creators can put their assets into tokens and store them on a blockchain. It can be explained as the process of “tokenizing” a real-world, or digital asset to a unique digital object. It is performed by using the concepts of tokens that are stored on a blockchain. This way they can be traded and managed online.
A token is an object that represents the right to perform an action or is a tangible representation of a fact. The represented object could be either physical or virtual. In blockchain technology, there are several types of tokens that can be used by creators to secure and manage their creations.
Long-Term Ownership and Fixed Fees
NFTs enable unique digital ownership. In addition, they can have a smart contract attached, which offers to fix long-term fees for the creator. This way creators can earn from their creation every time their piece is shared or accessed.
A new economy may also need a new idea of governance and management. As DAOs evolve, so do decentralized networks. A decentralized autonomous organization (DAO) is an organization represented by rules coded as a computer program that is transparent and controlled by the members of the organization.
A DAO is not influenced by a central government, which means that all financial records and core values are stored on a distributed ledger, such as the blockchain. This means that creators in larger groups can self-manage on a global scale, helping each other and increasing their efficiency, creativity, and communication style.
Future of The Creator Economy
The economy of creators is growing at a fast rate as business becomes more digital. According to the Influencer MarketingHub we are looking at an industry of the size of $100 Billion USD.
We already see OpenSea and SuperRare (NFT Platforms) being part of the creators’ economy and we are certain there are many more to come powered by blockchain technology. Once mass public adoption takes hold, it will enable creators more opportunities to earn, trade, and organize themselves and their products.
About Reef Finance & Reef
Reef Finance is building Reef Chain, a DeFi blockchain built using Substrate Framework. Reef Chain provides high scalability, enabling almost instant low-cost transactions, and supports Solidity and EVM, allowing developers to seamlessly migrate their DApps from Ethereum without any change in the codebase. Our vision is to make DeFi easy for everyone to invest in and build DeFi applications on top of Reef Chain.
Reef Finance has developed a fast, scalable, and EVM-compatible chain for DeFi applications, Reef Chain. Reef Chain is currently in the canary version of the mainnet and the official mainnet is due to launch in the next couple of weeks. Reef Chain is a customized blockchain that allows developers to build DApps or deploy existing projects from Ethereum.