Author: 0x Protocol
Compiled by: Tim, PANews
Highlights
- New Creator Economy: The Zora platform's posts and creator tokens will tokenize each post and creator profile, empowering a new creator economy that enables on-chain content monetization and new forms of interaction.
- Unified User Experience: By integrating Zora, the Base App allows creators to easily tokenize their posts, and users can perform multiple operations such as trading creator tokens and post tokens directly within a feature-rich interface.
- Top-notch Trading Pair Coverage and Low Latency: The 0x Swap API provides seamless trading support for Zora tokens in the Base App, utilizing advanced multi-hop routing technology for Zora token transactions, and combining real-time indexing to ensure new tokens can be traded immediately upon being launched on-chain, while always maintaining low latency.
- Rapid Growth: The Base App launched in July, bringing explosive growth to Zora. The daily token creation surged from 6,000 at the beginning of July to nearly 50,000 by the end of the month. The 0x Protocol has supported a total of 352,000 token swap transactions for Zora, with a total trading volume of $59 million.
What is Zora?
Zora is a rapidly growing on-chain social platform aimed at creating a new model for the creator economy.
Zora converts posts into tradable ERC-20 tokens and pairs them with creator tokens. This tokenized on-chain social platform creates a flywheel effect, linking token issuance, content creation, and liquidity. Creators can earn transaction fee revenue, while fans and traders can invest in the creators' content output.
Source: Zora
In this article, we will explore how Zora empowers a new on-chain creator economy and how 0x customizes routing architecture for Zora tokens to support this economic system.
Market Pain Points
The traditional creator economy is fundamentally limited because both creators and fans lack ownership and monetization methods.
- Platform Control: Creators rely on centralized platforms to reach audiences and generate income. These platforms extract significant value but provide neither ownership nor true revenue sharing.
- Engagement ≠ Ownership: Fans may be highly engaged, but they cannot directly participate in the success of creators. There is no direct way to invest in creators or their content.
- Limited Monetization Models: Profitability relies either on advertising or on tips and subscriptions. Both models are walled garden-like and have high fees, leaving creators with only a small share. Moreover, platforms lack native value discovery mechanisms, making it impossible to measure content value or highlight the value created by creators.
The current social ecosystem can capture attention but fails to convert it into value that creators or fans can own and trade. Meanwhile, content, creators, and users are fragmented across different platforms.
Today, we are beginning to see the emergence of new social infrastructures driven by open and permissionless blockchain technology, such as Zora and Farcaster. These platforms prioritize user ownership and composability while actively exploring new ways to monetize and interact with on-chain content. Applications like Base App are integrating various platforms into a single cohesive experience for users.
Zora + Base App: Empowering the On-Chain Creator Economy
Zora aims to address these issues by establishing a creator economy centered around content and identity tokenization. Each time a user publishes content on-chain, a post token is generated and linked to the creator token. This system establishes a direct connection between individual content and the broader creative output of the creator.
Each creator token is then paired with the platform's native ZORA token, forming a multi-layer token economy. Fans can invest in individual pieces of content and participate in the creator's growth journey. Creators earn 1% from each transaction, directly converting engagement and mind share into economic returns, while 50% of the total supply of their creator tokens will be gradually released to creators over five years.
Zora's token model incentivizes user participation, empowers value discovery, and promotes engagement in token activities, creating revenue for creators and their supporters, thus rewarding early backers and long-term content creators. Both creators and fans can easily participate through the Zora application.
Zora's token mechanism is expected to create a self-reinforcing flywheel effect. The more posts there are, the more transactions occur, attracting more attention and bringing in more users.
However, to get this flywheel truly spinning, Zora needs distribution channels. It needs to reach users where they are. Thus, the Base App was born.
In July of this year, Coinbase launched a new version of its wallet that is fully featured and integrates SocialFi applications, directly incorporating the decentralized NFT marketplace Zora into its social feed. Users do not need to access Zora directly or switch back and forth between multiple applications and platforms; Zora is integrated into a single information stream along with platforms like Farcaster and Bankr.
Through the Base App supported by Zora, creators can easily tokenize posts and profit directly through tips and sales, while users can instantly trade creator tokens and post tokens, all without leaving the information stream interface.
However, to achieve this, the tokens need to be liquid and easy to trade.
Zora Liquidity Ecosystem Powered by 0x
One major challenge facing the Zora token ecosystem is that post tokens are paired with creator tokens, and creator tokens are paired with ZORA tokens. This token mechanism makes it difficult for users to trade these tokens directly and also complicates routing for routers to effectively route trades between various tokens.
For example, if a user wants to exchange USDC directly for a post token, they must:
- Exchange USDC for ZORA
- Exchange ZORA for the creator token
- Exchange the creator token for the post token
Meanwhile, the Zora tokens have also triggered an unprecedented surge in the creation of tokens and liquidity pools.
Users need to be able to easily trade and access deep liquidity for post tokens and creator tokens, and each new token pool generated by a post must be able to swap instantly.
Without the seamless trading execution services provided by the Base App and other applications, users would struggle to access these assets, and the flywheel effect would fail to gain momentum. This is where 0x comes into play.
As part of the integration with Zora, the Base App team needed to fully support Zora token exchange functionality within the application from day one while maintaining speed and reliability. The Base App team needed to meet the dynamic demand for Zora token support, so they chose to work with the 0x Protocol, with which they have a long-standing partnership.
Advanced Multi-Hop Routing
Before the launch of creator tokens, all post tokens were paired with ZORA or WETH. The pairing of creator tokens with post tokens effectively broke the traditional routing model.
To address this issue, the 0x Protocol built customized support features for Zora tokens to manage all newly created tokens, determining the best trading paths without affecting latency.
"The complexity of quotes and routing is a very unique feature of Zora. We had to build a customized integration system to facilitate the conversion from any token to post tokens." — Sav Dontamsetti, Senior Software Engineer at 0x
To support users in trading between Zora tokens and any other tokens, the Swap API employs advanced multi-hop routing technology, using ZORA and creator tokens as intermediary tokens to provide the broadest trading pair support for Zora token exchanges.
Real-Time Token Indexing
In addition to the complexity introduced by creator tokens, each post also creates a new liquidity pool. This means:
- Tens of thousands of tokens and liquidity pools are created daily, reaching the scale of the entire Solana ecosystem.
- Real-time monitoring of pools is required to enable instant swaps.
- With the surge in liquidity pools, efficient management of new liquidity pools is needed to minimize latency impacts and meet users' rapid exchange demands.
"The Zora tokens triggered a surge in liquidity pools. The challenge at the time was to support the creation of liquidity pools at this scale while maintaining low latency. We had to enable the backend system to quickly extract on-chain events to achieve instant routing and swapping while efficiently determining which liquidity pools needed to be included." — Eric Wong, Product Manager at 0x
With this customized development, the Swap API now provides top-notch exchange path optimization services for Zora tokens, with the broadest trading pair coverage and lowest latency. For example, when a user purchases post tokens with USDC, the 0x Protocol automatically completes the full-chain transaction from USDC to ZORA tokens, then to the associated creator tokens, and finally to post tokens. Users can trade at lightning speed as soon as creator tokens and post tokens go live on-chain.
The Flywheel in Motion
Through the 0x Protocol, the Base App has fully supported Zora token exchange functionality and officially launched. After the app was released, the daily token creation on the Base chain surged from about 6,000 at the beginning of July to nearly 50,000 by the end of the month. This marked the first time the Base chain surpassed Solana in daily token issuance. Overall, the Zora platform has minted over 1.8 million tokens for approximately 200,000 creators.
The value growth of Zora creators is also significant: daily creator rewards increased from less than $1,000 at the beginning of July to consistently exceeding $10,000 by the end of July, with a single-day peak reward of nearly $375,000.
The Swap API has facilitated over $7 million in Zora token swaps through the Base App. A total trading volume of $59 million in Zora tokens has been processed by the Swap API, involving 352,000 transactions, with July alone reaching a peak trading volume of $27.5 million.
Zora's creator economy marks a key evolution in the Web3 ecosystem, where financial identity and social identity intertwine, and value flow and cultural dissemination progress in tandem. It deeply reconstructs the ways in which value is created, discovered, and distributed in the online world, and we look forward to its future developments.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
