Podcast Summary
Exploring the Creator Economy in Crypto: The creator economy in crypto includes NFTs, DAOs, and DeFi, offering new opportunities for creators, entrepreneurs, investors, and fans. Balancer, a DeFi platform, is an example of an equitable solution for accessing multiple tokens in one place.
The creator economy is a growing movement in the crypto space focused on providing more equitable platforms for creators and consumers, beyond traditional web 2 content platforms. Experts believe the creator economy encompasses NFTs, DAOs, and DeFi, offering new economic opportunities for creators, entrepreneurs, investors, and fans alike. The panel discussion aims to explore the nuances of this concept with leading experts in the field. As David mentioned, the creator economy's roots can be traced back to the internet and web 2 platforms, but there's a growing demand for more equitable alternatives. Balancer, a DeFi platform, is one such solution, providing access to the full power of multiple tokens within a single automated market maker, unlocking new possibilities for creators and investors. The creator economy is an evolving landscape, and this panel promises to shed light on its potential impact on the crypto ecosystem. Tune in to learn more.
The Creator Economy: The Relationship Between Creators and Their Communities: Crypto is enabling creators to receive value directly from their fans, changing the traditional dynamic of creating and sharing value online.
The creator economy refers to the relationship between creators and their communities in sharing value with each other. Traditionally, creators have produced value for their fans and ecosystem without a direct way to monetize it. However, with the advent of crypto, this dynamic is changing as everyone is creating and sharing value online, and crypto is providing new opportunities for reciprocation. Cooper Turley defines the creator economy as the relationship between creators and their communities, while Jesse Walden adds that we are all creators on the internet, making and sharing value. Li Jin further emphasizes that crypto is changing the game by enabling creators to receive value directly from their fans. Cooper is actively involved in various crypto projects, Jesse is a venture capitalist investing in the ownership economy, and Li works at a venture fund focused on the passion economy. Together, they bring a wealth of knowledge and experience to the table in discussing the future of the creator economy.
The Creator Economy's New Era with Crypto: Creators can now monetize through ownership and digital scarcity, align economic incentives, and build richer ecosystems. This marks a new era for creators to be the brand, product, and business in and of themselves.
We're witnessing a significant shift in the creator economy with the introduction of Web 3 and crypto. The creator economy, which began with the rise of user-generated content on the Internet, has seen various eras of monetization, from advertising to subscriptions and direct user payments. However, with crypto, creators are not only able to monetize through ownership and digital scarcity but also align economic incentives and coordinate with their audiences to build richer ecosystems. This goes beyond the transactional relationships of the past and marks a new era for creators to be the brand, the product, and the business in and of themselves. Examples of these eras include Myspace (act 1), social media like Instagram (act 2), Substack-like platforms (act 3), and the current era with crypto (act 4).
A new era of creator economy with crypto and web 3: Crypto enables faster economic value transfer, incentivizing creators and distributing ownership to fans in the latest phase of the creator economy
The creator economy has evolved through different phases, each with unique characteristics and challenges. The latest phase, fueled by crypto and web 3 platforms, offers creators and fans new opportunities for ownership and shared upside. This shift towards an ownership economy is a logical next step, enabling creators to build platforms owned and operated by their users, and enabling fans to show their support financially or socially in deeper ways. Crypto plays a significant role in this evolution by making it possible to move economic value at the same speed and scale as information, incentivizing talented people to contribute and distributing ownership to anyone with an internet connection. This new era of the creator economy offers exciting possibilities for both creators and fans, and the migration towards it is driven by the desire for more meaningful relationships and shared rewards.
Creator Economy empowers creators with deeper connections and control: Creator-first companies prioritize creator empowerment, enabling deeper fan connections, more control, and monetization across platforms
The Creator Economy movement in Web 3 is empowering creators to build deeper connections with their audiences and giving them more control over their work and identity. This shift challenges the power of centralized intermediaries and aggregators, enabling creators to operate as their own "digital nation states" and monetize their content and fanbase across multiple platforms with one unified identity. Lee's tweet, "If you are a creator first company, your cap table should reflect that," emphasizes the importance of prioritizing creator empowerment in business structures. This movement not only benefits creators but also leads to more valuable and loyal fanbases, allowing creators to become powerful partners for brands and companies.
Empower creators with ownership: Centralized platforms offer reach and tools but come with risks. Creator-first companies provide equity, portability, and upside, aligning creator interests.
True creator empowerment lies in giving them ownership in the platforms they build their audiences and businesses on. Centralized platforms may offer some benefits, such as audience reach and content creation tools, but they also come with inherent risks of value extraction and control. Creator-first companies, on the other hand, can provide equity ownership, portability of content, and upside realization, signaling a more authentic commitment to creators. The economic ownership element is crucial for creators to build sustainable businesses and have their interests aligned with the platform's. It's essential for creators to be aware of these distinctions and evaluate platforms based on these fundamentals to avoid building on rented land.
The creator economy transforms the American dream: Individuals can earn financial capital through passions and communities, merging work and financial opportunities, and build communities around interests for potential financial freedom
The creator economy is transforming the traditional notion of the American dream by offering individuals the opportunity to earn financial capital through their passions and communities. This shift is moving beyond passive consumption and towards active participation, where individuals can propose ideas and contribute value to earn rewards. Transparency in decision-making processes is also crucial, as it empowers individuals to understand how they can affect change and be part of the system. The creator economy is different from the classic American dream as it merges work and financial opportunities, allowing individuals to build communities around their interests and earn from them without sacrificing time. While it may seem out of reach for some, the potential for financial freedom and sovereignty in how one spends their time is a powerful motivator. The future of the creator economy lies in advanced forms of community-driven investment and governance, where individuals can bring value to the table and be compensated for it.
Economic inequality in the creator economy: The opportunity lies in the ownership economy, where creators can benefit from the value they help create, potentially bridging income inequality in the creator economy
Economic inequality is a pressing issue that exacerbates the feeling of the American dream being out of reach for many people. The shrinking middle class and income disparity are significant challenges, especially in the creator economy where a small percentage of creators make significant earnings while the majority struggles. The opportunity lies in the ownership economy, where creators can participate in the upside of the platforms they contribute to, potentially bridging the gap between making ends meet and being in the middle class. However, income inequality persists, and it's essential to address it to make financial stability accessible to more people. The passion economy and crypto offer potential solutions by making entrepreneurship and business ownership more accessible and enabling creators to benefit from the appreciation of the value they help create.
Reinventing the middle class through creator economy and decentralized platforms: Decentralized platforms like Uniswap offer valuable insights for creator economy's future, enabling creators to earn ownership and financial gains through decentralized ownership models and peer-to-peer payments.
The creator economy holds global potential to reinvent the middle class through equitable ownership and decentralized platforms. The success stories, like YouTube and Twitch, prove the existence of a vast pool of creators. However, the challenge lies in making these platforms more conducive to the long tail, rather than just the top 1%. Decentralized finance (DeFi) platforms, such as Uniswap, offer valuable insights for the creator economy's future. Uniswap, a decentralized exchange, is owned and governed by its users through token ownership. This ownership model can lead to significant financial gains for active users, even surpassing annual salaries in some cases. Creator platforms can learn from this decentralized ownership model, allowing creators to earn ownership at any level, not just through investments or advisory positions. Additionally, peer-to-peer payments and real-time income collection, as seen in platforms like OnlyFans, can strengthen the connection between creators and their fans, ultimately benefiting the middle class creators.
Web3 economy empowers creators with ownership and income opportunities: Web3 economy offers creators more than just income, it enables self-ownership, equity, and tokens, leading to personal growth and fulfillment.
The creator economy in Web3 enables individuals to earn more than just a few dollars through traditional means and instead offers opportunities for ownership, equity, and tokens. This income goes beyond what one could earn from a 9 to 5 job, making it an attractive alternative for many. The discussion also touched on the potential of DAOs and the Uniswap grants program, which offers opportunities for individuals to contribute and shape these decentralized organizations. As a creator in this economy, the relationship with oneself changes as one gains sovereignty and self-empowerment through owning their own assets and being in control of their creations. This shift towards self-ownership and autonomy can lead to greater personal growth and fulfillment.
Creator economy empowers fans and content creators: Fans can collaborate, earn income, and be part of DAOs, while creators have permissionless opportunities to contribute and social skills are essential.
The creator economy shifts the power dynamic between content creators and audiences, making social media a valuable tool rather than a source of negative emotions. This evolution brings opportunities for fans to collaborate with their idols, earn income through skills like social coordination and organization, and be part of decentralized autonomous organizations (DAOs). Unlike traditional jobs, the creator economy is permissionless, allowing individuals to contribute in various ways without being told what to do. Social skills are essential in this new economy, and opportunities exist for those who may feel left out due to a lack of technical knowledge. DAOs play a significant role in the creator economy by providing clear directions for involvement and enabling the creation of value through collaboration.
The creator economy and crypto through DAOs: DAOs enable creators to build and monetize value through decentralized governance and internal competition using smart contracts and NFTs.
The intersection of the creator economy and crypto, specifically through the use of DAOs (Decentralized Autonomous Organizations), is leading to new and innovative ways for creators to build and monetize value on the internet. This includes the use of smart contracts to pool resources and bid on NFTs, as well as the development of decentralized products that can outcompete centralized organizations. The potential for DAOs to grow into sophisticated entities, even surpassing the size and scale of companies like Facebook, may seem far-fetched, but the success of decentralized projects like Uniswap demonstrates the power of decentralized governance and internal competition. The future of the creator economy in the crypto space is still unfolding, but it holds the potential for significant disruption and innovation.
The Future of Creator Economy with DAOs and Crypto: DAOs economically and politically align more participants, including fans, in a creator's operations, offering opportunities for involvement in DeFi, NFTs, social tokens, and DAOs.
The future of creators and their ability to build bigger businesses lies in Decentralized Autonomous Organizations (DAOs) and crypto technology. Historically, creators have been limited in their growth due to the economic value not being properly distributed and fans not feeling aligned with their success. DAOs offer a solution by economically and politically aligning more participants, including fans, in a creator's operations. Cooper is bullish on DAOs, comparing them to the new LLC, and predicts a massive inflection point in their adoption. Platforms like Audius, Friends with Benefits, PleaserDAO, and Bankless DAO are leading the way in the creator economy, offering opportunities for involvement in DeFi, NFTs, social tokens, and DAOs.
Recommended Platforms for NFT Creators and Developers: Foundation for artists, Zuora for developers, Mirror for writers, Right Race and Axie Infinity for unique opportunities. Don't be discouraged by rough edges, join a community or DAO to make an impact.
The NFT and creator economy space is rapidly evolving, and there are various platforms that cater to different types of creators and use cases. Jesse recommends Foundation for NFT artists and Zuora for developers, while Mirror is suggested for writers looking to monetize their audience in web3 native ways. Lee adds Right Race and Axie Infinity to the list, highlighting the unique onboarding process and income-earning opportunities, respectively. The overall advice for those looking to get involved is to not be discouraged by the rough edges of the crypto and NFT space, as it's still in its nascent stage but is expected to grow quickly. Additionally, joining an established community or DAO can be a valuable contribution for those looking to make an impact in this space.
Joining the creator economy through social tokens and DAOs: Learn about social tokens and DAOs by participating, experimenting, and contributing to the community. Don't be discouraged by complexities, and remember, potential rewards make it an exciting frontier.
Getting involved in the creator economy through social tokens and DAOs is less about financial gains and more about the social capital and learning opportunities that come with it. Don't be discouraged by the complexities of the space, but rather learn by doing. Start by participating in a Discord server or buying some social tokens to understand the ecosystem better. Remember, Ethereum, crypto, and DeFi are risky, but the potential rewards make it an exciting frontier. So, if you're interested in the creator economy, don't just watch from the sidelines. Jump in, learn, and contribute to the community. As always, none of this is financial advice. Just like the Bankless journey, you learn by doing in the creator economy. Additionally, the panelists emphasized the importance of learning the basics before creating your own projects. They encouraged people to experiment and try their hand at being a creator, whether it's through minting an NFT or buying social tokens. And if you're watching on YouTube, don't forget to like and subscribe to help spread the knowledge to more people. In conclusion, the creator economy offers unique opportunities for social connections, learning, and potential financial gains. Don't be afraid to dive in, start small, and learn by doing. As the panelists mentioned, it's a risky frontier, but one that's worth exploring.
