Web3 projects like XCAD are changing the way creators interact with their fans, introducing new revenue models for both influencers and their followers.
One of the biggest developments of the digital age has been the ability for individuals to become their own brands, enabled by general increase in internet media consumption, and a plethora of innovative tech platforms that have lowered the barriers to content creation.
Indeed, the global creator economy is estimated to be worth around $250 billion at the present
moment, and is expected to almost double in size over the next few years, reaching a valuation
of $480 billion by 2027, according to research from Goldman Sachs.
But the creator economy as we know it is still hampered by various limitations which
predominantly revolve around the imposed algorithms and policies of whichever platform the
creator chooses to base themselves on.
These policies limit the profitability of individual creators, and combined with a revenue sharing
model that’s often skewed in favor of the platform and its advertisers, result in an environment
where creators can’t reach their full potential.
But in the past couple of years, new innovations have emerged from the blockchain and Web3
space that are set to upend this paradigm.
How Web3 Boosts the Creator Economy
While the creator economy is by all accounts booming, when we peek under the surface we see
that relatively few creators actually make a living from their efforts. Of the estimated 7 million
musicians who upload music to Spotify each day, only 0.2% earn more than $50,000 annually,
while just 3% earn more than $1,000.
Similar inequalities can be seen across platforms such as YouTube and Substack, while
creators in the Apple ecosystem are subject to 30% taxes on in-app purchases, and are
prohibited from tracking their followers’ emails to generate subscription revenue.
Some Web3 projects are now finding ways to supplement the income of creators without having
to drag them away from their chosen platforms. One such example can be seen in the creator
token and fan loyalty platform, XCAD Network.
Rather than compete with the likes of YouTube, XCAD instead looks to complement existing
platforms by providing additional content monetization options which bring creators and their
fanbase closer together.
One of XCAD’s main offerings is a browser plugin that works in conjunction with YouTube and
allows viewers to earn cryptocurrency rewards by engaging with their favorite creators.
When a creator signs up to XCAD, they are given personalized tokens which they can then
issue to their audience. These tokens can be traded on the open market on an integrated
decentralized exchange (DEX), or held by fans for the long-term.
Given that token-burn mechanisms are implemented as the creator grows their audience, long-term holding can result in significant gains for the viewer as their creator grows in popularity and value. Tokens can also be staked in liquidity pools for the opportunity to gain passive income. Another monetization option includes the minting of exclusive NFTs fashioned from the creator’s most popular highlight moments.
Crucially, XCAD tokens operate alongside platforms like YouTube, enabling creators to spin up
communities and fan-bases that can generate revenue even before the creator generates
traction on YouTube itself.
Fairer Revenue Sharing
The XCAD Network emerged as one of the most successful projects from the DAO Maker
launchpad in 2021, and has already onboarded YouTuber creators with a combined following of
more than 500 million.
These include notable names like MrIndianHacker, who has 36.5 million subscribers;
KhandeshiMovies, with a subscriber base exceeding 33.7 million; and RenatoGarcia, who has a
following of over 27.8 million subscribers, alongside numerous others.
YouTube juggernauts Mr. Beast and KSI were among early investors in the project, while
byViruzz, one of Spain’s most popular internet influencers, held a creator liquidity offering (CLO)
on XCAD, creating personalized ‘VRZ’ tokens which were distributed to audience members
worldwide.
In addition to helping generate new revenue, XCAD also fosters deeper engagement with
existing fans, and helps maintain a loyal fan base through ongoing gamification and rewards.
While the majority of platforms only distribute revenue between the creator and the platform
itself, XCAD enables audiences to benefit monetarily from the growth of their favorite creators,
strengthening the bonds between an individual’s brand and its followers.
This fresh approach to revenue sharing helps address the inequities of the current model, and
turns fans into active participants in the growth of a content creator’s channel. Coupled with
XCAD’s ability to confer voting rights on community members, the audience become
stakeholders in the future direction of their favorite channels, forming a positive feedback loop
that helps creators better understand, and serve, their fans.
Fostering Independence Going Forward
One of the biggest obstacles facing would-be creators and influencers is the walled garden of
the platform they base themselves on. For the creator economy to truly flourish beyond current
expectations, creators need to be equipped with tools that allow them to independently foster
active communities that generate revenue despite the limitations of platforms like YouTube.
The creator economy is now on the brink of a transformation that promises to unshackle
creators and allow them to foster engaged communities without being subject to centralized
oversight and arbitrary control, while bringing fans on-board as vested stakeholders.
All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, make your own research prior to making any kind of investment.