Web3 and the Future of the Creator Economy
Welcome to my blog series on web3 and the creator economy! This series dives into NFTs, cryptocurrencies, metaverse games, and more.
Check out all the articles in the series here. You can also hire me as a freelance writer for your web3 project — more on my services here!
I’ve written on here about how the Creator Economy is disrupting traditional media dynasties. Influencers are walking in fashion shows and upstaging professional models, YouTube and TikTok are seeing to it that UGC (user-generated content) competes with other streaming apps in a big way for your precious screen time.
In the last year, we’ve also seen how web3 has disrupted finance, art, and a variety of different industries all over the world. A DAO (decentralized autonomous organization) even tried to buy the Constitution. (And failed, because, c’mon — do you really think the billionaires are going to let go of that treasure map hidden in invisible ink on the back? Get real.)
Which brings us to: does web3 hold the promise of unlocking the door to creators monetizing their work any way they choose?
I mean, I might as well be asking whether or not the invention of the Internet is going to change some things ‘round here. 🙂 But let’s dive into why I think web3 and the Creator Economy are perfect dance partners at this debutante ball.
Borderless, Decentralized, and Anonymous: Creating Without Rules
Web3 is built on the concept of ultimate freedom:
Crypto can be bought and sold anonymously. Money can change hands across borders, and to individuals who have never met or may not even know each others’ real names. Web3 projects often advertise their teams as “fully doxxed,” meaning that their backgrounds are public. How that is actually put into practice depends on the project. Some DAOs require different people to reveal their true identities one-on-one to other members to encourage trust. But without full transparency and everyone using fake identities online, there’s bound to be things hiding in the shadows: that can be both a good and bad thing, depending on if we’re talking about a bold art project or a NFT project turned rug pull.
The blockchain verifies ownership over digital assets in a way that has never been possible before. No need for gatekeepers like banks or other records to show ownership: the blockchain records who owns what.
NFTs (non-fungible tokens) aren’t just GIFs. They can have unique utility functions depending on their underlying smart contracts. Some NFTs are sort of “speculative memberships” where access to perks and a community can be resold to others.
Basically? A rebel artist’s daydream.
Think about it this way: you’re a fashion designer in New York known for your provocative creations. You’ve got a way with mesh and political statements. What if you wanted to do secret fashion shows for your fans both in-person in a secret location in NYC as well as through a livestream? How can you monetize that? You could do one-time tickets, and pay payment processing and platform fees.
Or, you could mint NFTs for your loyal fans, and only have a select amount available. Only NFT holders can attend your secret shows, get access to things like your sketches for new fashion pieces, or vote on what pieces you should make next. Your NFTs are bought and sold on the blockchain, and as they are resold and go up in value, you make a percentage.
If your art is particularly controversial, or you live in a country where free speech is restricted, these NFTs are even more valuable to you and your business: a government can’t shut you down, and payment processors can’t kick you off their system for violating their terms.
There are still some caveats to this: if you’re selling your NFTs on a platform like OpenSea, you’re still operating on their terms, so make sure to understand what a marketplace’s rules are and what their policies are.
How Artists, Writers, and Creatives Can Make Money on Web3
We’re in the early days of monetization, and this is something I’m going to continue to write about on here. NFT sales are the obvious one you’re seeing everyone jump into right now, and the utility created for your NFT holders is up to you.
If you’re a creator, begin by doing your research and see what you can offer your community. That’s the basis of web3: growing, maintaining, and serving a community and providing value to them.
If you can master those fundamentals, you can grow with web3 and utilize the evolving technology in new and exciting ways.
But What About the Metaverse?
While web2 was all about social media, web3 is all about the metaverse. But what the heck is the metaverse and how does it impact creators?
Contrary to popular belief, the metaverse isn’t owned by Daddy Facebook — sorry, Meta — no matter how badly they want to rebrand from the hot mess of a company they were/are.
The metaverse is a series of virtual worlds that — just like the blockchain it’s built on — provides decentralized offerings like land ownership, built-in audiences, and one-of-a-kind events and experiences.
While the pandemic might be “over,” we’ll probably still face variants of COVID — or perhaps even a new virus — in the future. The metaverse offers a way for people to gather in a virtual space with no fear of getting infected from a stubborn new variant.
From the research I’ve done, the “metaverse” is better suited to AR (augmented reality.) Think Pokemon Go and the society-altering effect it’s had on massive crowds of people just showing up at places like the Santa Monica pier to catch some rare pokemon. Real-world connected paired with augmented reality is much more potent than VR, although virtual reality has its place in all of this, too.
I recently got an Oculus Rift headset, and while I’m impressed by the gameplay and immersive feel of it, it’s still heavy and clunky and not something I would wear for hours on end. VR still has a way to go before it becomes a staple in our lives, where AR could more quickly change how we dip in and out of virtual worlds.
Creator Opportunities in the Metaverse
Right now, designers and artists are building metaverse-ready assets like virtual clothing, cars, and other one-of-a-kind items. Before you scoff at the idea of buying clothes in the metaverse, think about how people in real life buy absurdly expensive cars or Prada purses. People pay top dollar for the status these items present to the world.
The metaverse is no different: in fact, it can amplify someone’s status even further. A Jackson Pollock hanging in your living room is cool for the people who visit your home in person, but you can multiply that reach (and your corresponding status signaling) by an infinite number if you have a prized NFT as your profile picture on Twitter or hanging on the walls of your metaverse home that you purchased on land next to famous celebrities.
Digital influence is valuable, and if you’re a creator, know that your skills are going to multiply in demand because your reach is going to be exponential.
The “jobs” in the metaverse will all be entertainment-based. Can you create a cool environment? Make neat digital experiences, art, or fashion designs? Can you host virtual events? Even personal trainers will find more clients in the metaverse who can work out from home with their VR headsets. Artists, creators, and service providers will be able to be fully remote, borderless, and on-demand to clients and patrons all over the world.
Get DAO With It
I’ll be honest — I’m not a fan of the DAO (decentralized autonomous organization) structure in the way it’s been used so far. This article in the New Yorker breaks down the concept of DAOs and recent (failed) examples. Essentially, a DAO is a company, but with a flat hierarchy: voting shares are often distributed through things like NFT ownership, and staking requirements (AKA how many tokens you have locked up for a certain period of time.) When it’s time to make a decision, the anonymous individuals vote and steer the ship, and trade-off on different responsibilities.
I love this concept, but it does feel a ~ tad ~ utopian. A company with no boss? Where everyone votes on decisions and shares responsibilities? Maybe I’ve been too brainwashed by America’s ideals of capitalism and rugged individualism, but DAOs seem — in their current form — a bit of a pipe dream.
What I think will work better in the long run is a partial DAO. Meaning, there’s still a leader with the vision of what the DAO is doing, and while others can join and vote, there are rules in place to keep groups from cannibalizing themselves, and keeping bad actors from gaining too much power.
Anyways, I’m not going to dive too deep into DAOs other than to say it does have the feeling of a digital artist’s commune. If you’re looking to start something in the world of crypto, a partial DAO might be an interesting experiment. Maybe you start a virtual Shakespeare troupe a la Station Eleven and everyone splits NFT sales through the DAO.
Whatever you decide to do, DAOs have fascinating potentials, as long as you can keep the structure from falling prey to mob rule or group indecision.
What Probably Won’t Work in Web3
I’ve seen plenty of web3 initiatives out there that seem like clout-chasing, hype-obsessed projects that have no real genuine love of the space built into them. These might be uninspired NFT collections, or projects started solely with the idea that they can make the founders (or their investors!) rich.
Everyone is obsessed with utility these days: meaning, the days of buying GIFs just for GIFs’ sake is over. Just look at how ApeCoin (from the social club NFT collection Bored Ape Yacht Club) did some fishy stuff surrounding their release of the cash-grab token, ApeCoin.
I’ve seen numerous web3 projects that mirror this cash-grab energy. Everybody and their mother is trying to crowdfund storytelling, with even Ashton Kutcher and Mila Kunis barely able to release regular episodes of their NFT-funded “Stoner Cat” series which looks like a Kickstarter gone wrong, with only two episodes released in the last year.
The biggest hurdle for web3 — and the creators trying to navigate these new platforms! — is how to deliver on their promises, and put in the work to make what they’re building be a worthy product.
As a web3 copywriter, I’ve personally been involved with some of the top web3 projects. I can confidently say the era of get-rich-quick is over for people just trying to make a buck by minting some NFTs. However, if you’re here to create real value in the world of decentralized art, creativity, and utility — there are endless opportunities for you to create something incredible, and reap the rewards of this digital renaissance that’s transforming how we live, work, and consume content.
Looking for a freelance writer for your web3 project? I’m your gal. Read more about my services here, or check out more articles on my blog about the web3 space and its intersection with the creator economy.