That would have been my reaction a little over a week ago. But, as I've started my research I'm beginning to think this could be a major breakthrough for artists - creators.
Direct quote from Forbes September 20, 2021 -
"Content creators — artists, musicians, writers, social influencers — are the true stars and revenue drivers for media properties, but they are often not adequately rewarded for their efforts. The relationship between creator and fans is intermediated through a third party, such as Instagram, which shares the revenue and exerts some artistic control. By directly rewarding creators for their work, social tokens — a type of cryptocurrency (crypto) whose value reflects fan enthusiasm — may fundamentally disrupt this long-standing model. Creators, in essence, become their own economies."
I you as a creator can get directly rewarded from your community of fans, the potential upside is very exciting. Content creators can use the tokens they issue in two self-reinforcing ways: to build and reward their fan community and to compensate themselves for their creative work.
Let's take a little deeper dive and read how Peter Yang from the Creator Economy explains social tokens.
What does it mean to co-own a community?
To make this concrete, suppose you're a YouTuber named Jimmy with 10,000 fans.
Instead of asking fans to pay to subscribe to your YouTube channel (letting YouTube take 30% of your revenue in the process), you ask them to buy and hold $BEAST tokens. In exchange, they:
1. Get community benefits
Token holders get access to your private Discord community and exclusive content drops. They can also use their tokens to vote on community actions (e.g., who you should hire as a community manager).
2. Co-own NFTs
You ask fans to buy $BEAST tokens to crowdfund your next video, which you’ll list for sale as an NFT. In exchange, token holders get a 10% of all future sales of the NFT. Since token holders make money when your NFT sells, they will help find a buyer.
3. Co-own your future income
To grow faster, you need to get better video equipment and hire an editor. You ask fans to buy $BEAST tokens to fund these purchases. In exchange, token holders get a cut of all future income that you make up to a certain amount (e.g., $100,000).
Let's take this journey together!
As I mentioned, I've only recently heard about Social Tokens; however, from what I'm learning, Social Tokens can have an impact on artists ability to accelerate growth of their fan base and over time become a source of revenue.
Like NFTs that I've been exploring and sharing my learnings with artist friends, Social Tokens are also made possible by the blockchain. Yes, the whole space can be very techie and oriented toward investment minded folks, of which I am not, but there is a very real possibility that the blockchain can serve to benefit artists, and for that matter, every solopreneur and small business.
I'll share what I'm leaning through blog posts, Instagram posts, LinkedIn and Tweets and perhaps together we can reap benefits of this new financial world created by blockchain. (I can't even believe that I'm using the term blockchain in a post to artists>