Creators have built a massive multi-billion dollar industry and made it possible for nearly anyone in the world to make a living as full-time digital creators — whether it’s being a Twitch streamer, a YouTuber, a TikToker, or an influencer on any social platform.
The formula is roughly as follows:
- Creators make unique content that attracts fans.
- Users view the content, become fans of the creator, and share it with their friends.
- As their fan base grows, creators gain influence in the form of social clout and a distribution base in the form of total followers.
- Finally, creators monetize their influence and distribution through donations, sponsorships, or merchandise. People who successfully build communities and fan bases are rewarded as they can monetize their communities to support their creative careers. This has aided a bloom in the world of creator economies.
With the introduction of blockchain and Web 3.0, early innovators began experimenting with creator economies in the form of cryptocurrencies. This led to the creation of “social tokens” which are tokens backed by the reputation of a person, community, or brand. Creators launch social tokens representing themselves, and as more fans buy into the token, the token increases in value, thus rewarding both the creator and the fan. These tokens are built on the premise that communities will be more valuable tomorrow than today and the principle of “ownership economies.” In short, fans have a stake and can contribute to their favorite creators’ social communities.
Using cryptocurrencies and Web 3.0 for creator economies has three main benefits that we discuss below:
1. Decreasing platform dependency
With the introduction of social tokens, creators’ revenue streams are no longer limited to their social platforms. Instead, the economies they build up with their tokens are platform agnostic and censorship resistant (assuming the underlying blockchain is secure). This decreases switching costs for creators as they can migrate to new platforms without taking too much of a revenue loss. This also improves creators’ censorship resistance as they can simply switch to a new platform in the event that they are censored or face erratic platform policy changes.
2. Bypassing platform rent
Removing creator economies’ revenue streams from the platform also allows creators to bypass platform rent. Currently most video and streaming platforms, for instance, take a fee from creators’ revenue. By using a social token, creators are no longer charged platform rent and fans no longer need to pay fees to support their favorite creators.
3. Sharing economies with fans
With social tokens, creators can build communities that provide for the fanbase, is controlled by the fanbase, and is supported by the creator. Though the creator’s reputation and community drive the underlying value of the social token, the fans — or the token holders — can also control, govern, and contribute to that creator economy.
Introducing Rally: Crypto for Creators
Rally is an open platform built on Ethereum that empowers creators, celebrities, and brands to launch their own social tokens, also known as Creator Coins. Rally is governed by its native token, $RLY. Fans can purchase Creator Coins to support their favorite creators and to access special benefits determined by the creator. With Rally, creators can grow their audience, reward fans, and earn more revenue. Most importantly, Rally enables creators to build business models powered by their own custom social token and share an economy with their fans. Rally is exciting because:
- No-Code Token Platform for Easy Adoption - What Wordpress did to make HTML usable for website creators, Rally does to make crypto usable for all creators and fans. No code and no cryptic user experience eases onboarding and makes crypto adoption easier for newcomers. Fans can create an account and purchase a creator’s coin in less than 60 seconds.
- Native Token Design with Network Effects - Rally has a multi-token model. $RLY is the underlying governance token for the network on top of which creators can mint unique Creator Coins. As $RLY stakes are required to mint Creator Coins and Creator Coins inherit $RLY’s liquidity, the growth of $RLY and Creator Coins create network effects and build on each other.
The Rally network is already seeing creators use their Creator Coins in all sorts of ways. Existing use cases include the following:
- Reward loyal fans by sending them coins as a “thank you”
- Offer exclusive merchandise that fans can purchase using Creator Coin
- Charge for exclusive benefits varying by creator (ex. unreleased content, private communities, and backstage access)
- Earn weekly network community rewards in the form of $RLY when a creator’s coin economy is highly engaged
Some creators are also exploring engaging with fans through NFTs, as Rally’s Creator Coins and Ethereum based NFTs will live on the same blockchain and can interact with one another.
Rally aims to onboard the next 100 million users into crypto through a community-based, self-governed protocol. By handling the complexities of crypto to enable a user-friendly introduction to blockchain and cryptocurrencies, having strong programmatically defined token network effects, and empowering the monetization and creator control over their own economies, Rally is poised to do so.
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