Web3 Monetization: Decentralizing the blueprint for relationships between creators and fans

Let’s face it, creator-fan relationships are fragmented. Since the advent of Web2, fans have become accustomed to a two-way street of following and consuming, and rarely feel fulfilled from their interactions with high-profile creators. Celebrities have limited and segmented tools to connect 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 decoupling.

Social tokens, a type of blockchain token that are personalized and traded for a specific offering, allow creators to develop and nurture a local economy for their network of fans by transferring their services or skills into a social currency. In exchange for purchasing the social token, the fan unlocks a personalized experience, such as For example, an exclusive stem track from a music artist, a video shoutout from a big-name influencer, or a training session with a famous athlete. By enabling this process, social tokens deepen the convergence of physical and digital experiences and uncover new methods of interaction that are dynamic and multi-directional – a framework that rewards both creators and fans.

New means of monetization, new relationships

Social tokens, also known as creator tokens, grant a level of personal sovereignty unattainable on legacy systems. Therefore, coding functionality is limited only by human talent and creativity. This direction offers a new opportunity for everyone across the spectrum, from nano-influencers to high-profile celebrities with huge community followings. Last we saw was the discourse surrounding Joe Rogan and his three-and-a-half-year exclusivity deal with audio streaming service Spotify, which is reportedly worth nearly $200 million. With nearly 200 million monthly downloads of Rogan’s podcast, it’s obvious that he could catapult past Spotify’s offerings if he chose to monetize his community directly and cut out the middleman. According to Patreon co-founder Sam Yam on The a16z Podcast, the average initial pledge amount has increased over time, growing 20% ​​in the last few years and now exceeding $100 per month.

Although many A-list celebrities are taking advantage of Web3 technology – for example, Paris Hilton is launching an NFT collection and Reese Witherspoon champions digital identity – Social tokens will prove to be much more valuable for independent developers. Once the big stars earn their money, monetization and branding are largely outsourced. However, for less established artists with audiences of less than 1000 people and up, receiving just a single dollar from each of their fans would underpin major progress and success through decentralized crowdfunding.

This creates a positive feedback loop in the creator-fan relationship. When the creator is more in tune with the support of their community, they can create aptly engaging and fulfilling content. Thus, the monetization potential of social tokens brings beneficial autonomy to the careers of aspiring creators. Instead of being constrained by structures of celebrity status, traditional and social media, power is now squarely in the hands of creators and their respective online communities. Celebrities can choose what and when to share, and fans can choose what and when to consume, fostering a symbiotic relationship between both parties. This is the area where you’ll find the creators most likely to do the legwork, as relying on a social token takes a consistent and concerted effort. Responsibility becomes measurable in the production pressure of the community. As a result, the content produced is of higher quality, engagement is frequent and impactful, and overall fans are deriving more value from the celebrity relationship than ever before.

The higher the investment, the higher the reward

Fans empower both parties and now make a more important contribution to the relationship by sharing in a creator’s success and investing in their future and continued performance. By choosing to demonstrate support through staking, the Web3 alternative to “following,” consumers gain access to a whole host of exclusive and additional Web3-enabled features offered by the celebrity.

By staking your creator token, you may gain access to an exclusive fan club. For the superfans who have garnered some interest, they might be able to exchange it for a non-fungible token (NFT) that represents a season ticket or lifetime VIP access. When fans use and acquire intangible assets through Web3 activities, they themselves become both physical and digital entities. Digital functionality supports physical experience and vice versa.

There is a higher risk of endorsing a celebrity in the metaverse as the value can drop the moment an athlete gets injured or an unfortunate media controversy erupts. But as the saying goes: the higher the risk, the higher the reward! Creators acknowledge this volatility by showing appreciation for their followers’ investments through transparency, greater access, and a closer relationship. Fan engagement is becoming a celebrity driver, and interactivity is now essential.

The Future of the Creator

While the introduction of social tokens into the celebrity realm is exciting in its empowerment and medium for fostering meaningful exchanges, it also leaves many questions unanswered, such as leaving those of us who don’t crave personalized experiences?

Since much of the free content available today may be blocked, users will be forced to be more selective about who gets their attention. However, this should not be taken as a negative as it is a lesson in conscious consumption. Currently, following 100 people can be done without much thought, but paying $100 is a much more impactful and thoughtful decision. Refining our choices below puts the power of curation back where it belongs: in the hands of the people. In summary, these social tokens will revolutionize our relationship with creators and the media in ways that will benefit our daily consumption habits.

The current Web2 system is constrained, inefficient for creators and fans, and strategically designed to serve advertisers and the centralized platforms on which those relationships exist. A redesign of the system now gives developers the opportunity to generate significantly more revenue and deliver a more authentic, engaged and accessible experience to their communities. In the future, these relationships will be underpinned by closeness, loyalty and personalized content, and freedom of choice will be unlocked. Fans directly select the products and services that celebrities will directly offer. While new monetization opportunities allow both celebrities and followers to exercise autonomy over their contribution to the relationship, these activities take place behind a paywall.

That’s not to say everything on the internet will migrate behind paywalls. There’s a barrier to exclusivity that’s not so obvious in the current celebrity dynamic, but once it’s crossed, the avenues of access are limitless!

Rusty Matveev is CSO at Calaxia