Will the rise of the "creator tokenization" narrative become the next hundred billion dollar market?

CN
3 months ago

The tokenization of creators is not only an innovative concept but also a trend in the development of the digital economy.

Written by: hitesh.eth, Founder of dyorcryptoapp

Translated by: Ashley, BlockBeats

Editor's Note: This article explores how the tokenization of creators allows fans, investors, and brands to directly participate in the growth of creators, promoting market transactions and value discovery. As the market size of the creator economy surpasses $500 billion, the tokenization model can help brands secure early collaboration opportunities and leverage DAO governance to enable fans to co-create business decisions. The financialization of the creator economy is becoming an inevitable trend in the Web3 era and may reshape the interaction between social media and financial markets.

The following is the original content (reorganized for better readability):

Creators are essentially like startups, but one key difference is that in startups, investors can invest and bet on their growth at different stages, while in the creator space, fans or investors have not been able to directly participate in their growth. Whether it is a startup or a creator, the core of growth lies in whether consumers are willing to pay for their products or services. The products or services of startups usually revolve around a problem to be solved, while the products of creators are their content itself. This content, as a product, fits into different interest-driven niches, meeting the needs of various audiences.

Speculative Characteristics of Startups and Creators

Startups operate in a highly speculative environment where investors bet on early-stage companies, hoping they can expand quickly and become profitable. The valuation of startups typically depends on market attractiveness, user growth, and revenue potential. This speculative logic also applies to creators, but there is currently no formalized investment structure that allows fans or traders to participate in the growth of creators. The lack of liquidity in the creator economy represents an untapped market opportunity—if creators can be tokenized, speculators can trade their growth potential just like betting on startups.

Speculation on creators could become a significant opportunity for traders and investors. Just as startups go through hype cycles, with their valuations changing based on market recognition, creators also experience similar cycles—where influence grows due to viral spread, strategic partnerships, and media exposure. The reputation, engagement rate, and ability to convert traffic into revenue of creators are quantifiable metrics that can serve as speculative bases for their tokenized value.

The 0-1 and 1-10 Journey of Creators

The growth path of creators is similar to that of startups, going through the 0-1 and 1-10 stages.

  • 0-1 Stage: This means breaking barriers, entering niche markets, building an initial audience, and continuously optimizing content strategies. Many creators stop here, just as many startups fail before finding product-market fit.

  • 1-10 Stage: This means scaling up. Creators at this stage begin to establish brand partnerships, gain commercial sponsorships, and monetize traffic. At this stage, creators are no longer just content producers but gradually grow into a complete business entity. This transformation is similar to the process of startups growing from small teams to mature companies.

Today, many consumer-focused startups and creators have become part of the same ecosystem, with similar goals: selling two types of products to users—content itself and brand promotions integrated into the content.

The Scale and Future Potential of the Creator Economy

The creator economy has grown into a multi-hundred billion dollar industry, expected to surpass $500 billion in market size over the next decade. Currently, millions of creators produce content daily, and brands are investing huge sums in influencer marketing. In 2023 alone, global influencer marketing spending exceeded $20 billion, and this figure continues to grow as brand budgets shift towards digital-native advertising.

The tokenization of the creator economy is expected to give rise to a new asset class. Within the next three years, the valuation of the creator token market could easily reach $100 billion as more creators adopt token-based monetization models. Establishing a liquid trading market for creator tokens will provide investors with a new investment arena, allowing them to bet on emerging influencers and form price discovery mechanisms based on social influence, audience growth, and brand collaboration flows.

Creator Tokens and Brand Collaboration

From a brand's perspective, locking in creator collaborations early is crucial. Brands often want to establish partnerships at discounted rates before creators go viral. After the tokenization of creators, brands can benefit from their growing influence by purchasing and holding their tokens. This not only provides brands with priority collaboration rights but also ensures they have access to more valuable advertising resources after the creator's success.

If the value of creator tokens rises with their influence, brands holding these tokens can profit from discounted sponsorship fees and capital appreciation. This model encourages brands to invest long-term in promising creators rather than just paying one-time advertising fees.

Fans as Brand Managers: DAO Governance in Creator Collaboration

By introducing DAO governance models, fans can deeply participate in the business decisions of creators, fundamentally changing the way brand collaborations are conducted.

  • Fan Voting Decisions: Brand collaborations for creators will be collectively voted on by DAO members (i.e., token holders) rather than being unilaterally chosen by the creators. This ensures that brand collaborations align with the audience's needs and values.

  • Revenue Sharing: Revenue generated from brand collaborations can be distributed to governance token holders through staking reward mechanisms, making them direct stakeholders in the growth of creators.

As long as creators remain popular, their influence and traffic will grow, further driving token trading volume and investor interest, thereby increasing the value of creator tokens. DAOs will act as decentralized brand managers, ensuring transparency and fairness in collaborations while providing sustainable profit models for creators and their communities.

The Future of Creator Tokenization

The tokenization of creators is not just a conceptual innovation but an inevitable trend in the development of the digital economy. The rise of Web3, DeFi, and tokenized assets creates a perfect environment for the prosperity of the creator token market. The speculative market built around the creator economy could fundamentally change the power structure of social media, allowing creators, brands, and fans to participate together in a new financial system.

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