Once the dinosaurs of social media like Facebook opened the Pandora’s box of the Creator economy. Now over 50 million independent, and who knows how many dependent, creators are earning at least $20 billion on such platforms as Twitch, Patreon, TikTok, Spotify, YouTube.
The problem is all these platforms are not free spaces that have boundless opportunities but centralised corporations optimised for profit earning, regulated by governments. As a result, creators’ content is censored while distributed-by-internet content suddenly has geographical boundaries.
But most importantly, there were already many occasions when creators simply lost their accounts with all their audience due to hacker attacks, corporations’ vulnerabilities or just because. Also, no surprise, corporations like Spotify take the lion’s portion of musicians’ earnings, leaving only around 70% to the whole team of the right holders.
In other words, so far, few tech giants enjoyed the multibillion pie baked by millions of talented independent creators. The Web 3.0 development could not leave such social injustice untouched. But when Metaverses and decentralised finances gave birth to the Create-to-Earn model, creators finally can find peace and do what they do best — create.
5 antecedents for the Creators economy Renaissance
Five factors came into play to open the doors for the creator economy at the intersection between real and virtual worlds. Antecedents of the Renaissance were the following:
1) Decentralisation gave society what we needed most — lack of greedy intermediaries, in other words — air to breathe. Blockchain technology allowed creators a bullet-proof way to claim intellectual rights. Who needs a lawyer now? Maybe only a metaverse lawyer.
2) The emergence of non-fungible tokens made it possible to register something unique and collectable, and trade these collectables. NFTs embed mechanisms to distribute royalties, and minting coins gives the benefits of participating in the whole economic life cycle. Artists were the first to react: for example, 10 most expensive NFTs were sold collectively for over $300M. This is just a little more than 3 dozen creators like this that could have formed a collabo to buy Twitch: Amazon bought it for $970M. Creators’ work now can be valued more than centralised platforms’ entire business.
3) The GameFi sector with Play-to-Earn models showed that blockchain can be very much down to earn when Axie Infinity became a top game in the rural Philippines where villagers could pay bills by playing half a day. It forever changed how people see imagined universes. It is no longer an occupation for teens but a space to invest in, create for and learn about.
4) Metaverses joined physical and virtual realities, giving birth to new possible forms of creation. Even the dinosaurs like Meta announced plans to hire 10 000 specialists to build a proper metaverse.
5) Finally, decentralised finances married metaverses and gave birth to the MetaFi sector with the Create-To-Earn model, in which gamers can create NFTs themselves, and are accountable for the long-term development of the universe. They can build, create, set up rules, govern and enjoy.
That is why in 2022, the Create-to-Earn model is the new black. But what creators can do exactly and are there enough tools?
5 gears to put creative vehicle in motion
Talented people always find ways to show their talents but to succeed they also need five gears to set the creative wheel in motion: education, motivation/incentives, instruments and tools, community support and access to an audience. Metaverses enhance all five gears and add new colours. Let’s see how:
1) Education. The MetaFi sector adds new educational opportunities to early birds who wish to become Metaverse creators. For example, the UAE-based project NFT Moon Metaverse offers educational courses in their premiere city Moonopolis. The first 5,000 citizens will have direct opportunities to acquire skills needed to create. It is just like going to university, but you are getting one of the professions of the future, and instead of paying university, you get paid.
2) Incentives. Metaverses have the most potential to provide creators with all benefits of a direct distribution channel along with all necessary financial infrastructure. Also, it opens new ways for embedded financial mechanisms. For example, NFT Moon Metaverse offers creators with hundreds of ways of earning income.
3) Instruments. NFTs will be the bricks to build the metaverses. E-commerce functionality can serve as a glue. But decentralised autonomous organisation at the centre of the metaverse economies will give all the instruments to make these bricks stand for ages to come.
4) Community support. It is a widely known fact that creators thrive in the environment of like-minded people. Metaverses allow the best minds to be in one virtual space regardless of geographical, economic or political boundaries. Decentralisation gives fair access to all kinds of artists and creators to the space where they can share and exchange ideas.
5) Access to audience: places to show off and sell their creations. Metaverses are at first places for entertainment, hence well-suited for showing off creations. Social component of the metaverse adds endless opportunities for engagement, while virtual advertising will help to boost the sales.
As a result, Create-to-Earn metaverses will be much more fruitful. There is now only one question standing: where to find the right project.
Where to dive in?
The Create-to-Earn model promises not only sustainable development of the metaverses thanks to the DAO component but also will finally bring fun back to gaming. Not to spoil all the fun, it is worth checking if the project has open-source code, strong community support and required transparency.
An example of such projects is the NFT Moon Metaverse organised as a DAO. But it would make sense to cease the moment soon. Avatars, first citizens of the premiere city Moonopolis will have all range of creators’ privileges: they will enjoy over 300 potential ways to earning, whether it be selling ID cards to new citizens, creating a type of business from scratch by creating a metastartup, renting space at Moon Plots for newbies or any form activity that other citizens find useful.
Here is the list of benefits from starting among the first, on the example of the NFT Moon Metaverse:
1) More opportunities to earn. For example, being at the forefront of creating industries, NFT Moon DAO Avatars can create not only startups but meta startups.
2) Direct influence on the future of the project. As the project’s creators put it, “wise and transparent ruling creates revenue streams for you”. In the DAO, each Avatar has voting rights.
3) First row seats at the best entertainment and educational events with access to closed in-game communities in the expanding universe.
4) Best returns on investment due to best prices. During the presale, the first 500 buyers will set foot at Moonopolis on May 15 for 0.08 ETH. On May 17, the price will already grow to 0.1 ETH for the next 4,500 Avatars.