Web3, NFTs, Social Tokens, and The Metaverse
We are living in changing times. Blockchain is a revolution that we cannot miss. Everything is going to change as you know it; decentralization has come to stay.
In a previous post I explained what DAOs are, and this time I will explain in more detail how this technology can change the way business will work between people using the creator economy as an example.
Crypto has changed the way we make money and collaborate. NFTs, Web3, Metaverse, and Social tokens grant content creators a range of possibilities that were unimaginable a few years ago. Through DAOs, different communities will have access to a series of tools that empowers them compared to large companies/banks.
The Creator Economy
Gen Z has some common characteristics. They admire YouTubers and TikTokers because they make money off their passions, brands give them clothes, and they have an abundance of items. All of that happens online. They have grown up in a world where a young boy can create a multi-million dollar company from his home. Influencers are the new rock stars.
Another common feature is that they share their lives online. They upload their experiences and thoughts to networks and share the content of personalities they like the most. Before twitch and youtube, a cable company decided what we watched. Today that is unthinkable, the users see what they want and the creators must reward their loyal fanbase in some way. Some of these creators have a larger audience than large communication companies.
But there is still a problem for creators: ownership and partnerships. Since the content creator economy appeared, we have seen several phases.
First, people used the networks like Youtube or Tiktok as a voice to unleash their creativity. Over time, people who gathered a large audience began to monetize it through platforms that allowed them to live off their content. We are now at a stage in which the creator himself is the one who creates his business. The creators have found that they can establish direct contact with followers by skipping various intermediaries.
Web3 is going to revolutionize the internet as we know it. In the future, you will connect directly with your wallet to a website, and that way you can contribute to the creator directly using cryptocurrencies. Defi allows you to create value for tokens through liquidity pools or staking and this is how creators can create their token, which they can give to the most loyal users. The greater the relationship and the audience, the more value that token will have. So creator/follower relationship will be a kind of partnership as they will both be interested in growing the business. The tokens will work like a share of a company, except that in this case you are investing in a person. Really revolutionary!
How can they be used to return the power that creators acquire as their numbers grow?
The creators have the option of using platforms such as Converse, which facilitate the creation of a virtual currency through smart contracts and blockchain. They also give you the option to airdrop or create rewards for users.
How can social tokens be used to interact with the community?
They can be used to access prepaid content. Fans will not only be able to support the creator’s project but will buy a part of it. Once the creator or project earns money, as a hodler of the social token you will be incentivized to advertise it. It will be the community itself who will invest in marketing for the project, knowing that they also earn from it.
Another benefit social tokens will have is for the governance of the project.
The followers will vote for future strategies and the creator, in order to keep the community happy, will decide based on the votes. It will be the creators who decide what % of the profits will be returned to the investors of the social token. Thus also creating healthy competition between companies/creators in the form of a battle for who rewards their community the most.
For many years, intermediaries have lived off the art that others have created. These intermediaries handle the marketing and publishing and decide what gets through, and how it looks. Social tokens change everything because in this case it will be the community and the creator who decides. Everything is much more person to person.
DAOs Change The Way We Do Things
People are starting to create companies from home with a couple of friends they met on a discord channel. It sounds weird, but some of these companies currently have millions in revenue and they started with an idea and a community of people who supported it and wanted to be part of it.
Work flexibility is increasingly valued. Working for a large company is not the goal of the youngest, they want to create their own. The freedom of time and the possibility of working from anywhere on the planet will change the way in which cities and communications between people are designed. In 5–10 years the metaverse will be more visited than the street.
The idea that a group of friends with common taste and goals can create a joint treasury, and through votes established with smart contracts, develop a product that ends up attracting thousands of users is more real than ever.
DAOs are a very recent tool, it is still difficult to find clear information and creating your own economy will pose a series of complicated problems at the moment.
Thanks to cryptographic mechanisms, DAOs allow people to collaborate transparently and easily around a joint mission.
The value of the DAO will depend on the benefits they report to the users who join.
It is important to give incentives such as tokens to the most active members of the DAO.
DAOs also lead to better governance as simple votes can decide the future of the DAO. The token hodlers will be able to launch proposals and it will be the other users who vote.
The idea behind a DAO is that a person does not need large companies to create a great community, they can find a group of people with similar goals with whom to build a joint project. The idea of social tokens can be directed to a single creator, or to a DAO in which several people will start creating content for others and in which the goal is for more people to join and collaborate.
We are still in the very early stages of building DAOs, those who enter at this time when they only seem like small communities will be rewarded as the projects grow. Twitter is abuzz with ideas and people who, while the world, in general, does not seem to be going through its best moment, still have hope that things can be fairer.
I think that 10 years from now voting processes of any kind will be more transparent thanks to DAOs. Donations will increase because finally, people will know what to do with their money. Guilds or small groups of people who have a good idea and who can establish a community will easily be able to raise investments, while future investors will be part of the project and will have the right to vote or receive rewards. There will be towns/cities that are managed by DAOs and the members will be citizens (lawyers, policemen, teachers, etc.) The corruption is over, the bureaucracy is over the world and we need to change that. With just a couple of clicks, it is really exciting the possibilities that will exist through DAOs but remember, it is still very early stages for the DAOs of today.
KAF is a consultant and writer helping people get closer to NFTs, DAOs, Defi, and metaverse.
BanklessDAO is an education and media engine dedicated to helping individuals achieve financial independence.