Content creators are looking into crypto tokens as a new way to profit from their communities. This is by using one platform allowing them to earn money by selling their followers’ digital tokens. Rally and Roll, two networks that distribute social tokens centered on creators, have a similar concept.
Patreon, the site that allows creators to make money directly from their fans, is considering a new way for them to monetize their audiences. The business intends to enable creators to sell their own personal crypto tokens, nicknamed “social tokens,” in order to raise funds for their communities. The Information’s 2021 Creator Economy Summit featured Patreon co-founder Jack Conte and chief product officer Julian Gutman, who discussed the future of crowdfunding and the rise of the creator economy.
“It’s unclear whether the increase in NFT expenses would be sustained across the entire creative sector,” Gutman noted. Patreon is looking into the prospect of allowing creators to sell social tokens to their followers. Primarily, it is a platform that allows them to promote their work to millions of paying customers. The site initially mentioned the notion in September, when it stated that it had “begun to investigate” it. Last month, Head of Policy Laurent Crenshaw discussed creators’ desire to reward fans with social tokens. Patreon’s Crenshaw: “We’ve heard from a number of creators who want to give special memberships and benefits to their patrons via a coin or token” Users may be allowed to create tokens “on a separate platform,” hinting that the company is not aiming to build its own internal minting infrastructure for creator coins. Conte responded “no remark” when asked if he had any comments on the matter by The Information’s Laura Mandara.
Creator tokens, also known as social tokens, allow celebrities to monetize their fan bases by releasing a cryptocurrency token that generates money and can be used to give exclusive access to perks, events, and other benefits. If the creator’s star rises in tandem with the token’s value, it may also benefit holders. Platforms like Rally and Roll, which allow decentralized autonomous organizations (DAOs) to govern their own coins, are already putting the notion into practice.
Socios is a new company that allows celebrities, athletes, and other social media personalities to create social tokens and interact with them directly via a smartphone app. Socios can be used to create custom fan tokens for sports teams, esports organizations, and businesses. Spencer Dinwiddle, an NBA player, has also entered the fray with his new company, Calaxy. The coin’s creator token, created by former college football player Kayvon Thibodeaux, has less than 1,000 total holders. According to the website, Rally’s largest coin, TILT (for The Tilt), has a current market cap of less than $500,000.