“In this new era of digital patronage fan investors can foster, pay and sustain an real creative community” –Paul Ebeling
The creator economy exploded during the VirusCasedemic, and is booming. Today, it has over 50-M content creators, opinion leaders and bloggers. For about 2.3-M of them, it’s a full-time job. Influencers with multi-million followings are collaborating with world-famous brands, collecting millions of views and turning clicks to cash.
This creative machine is fueled by centralized social media platforms, services and tools that help talents grow their audience and monetize their work. CB Insights’ reports that creator-focused companies raised $1,207,967,200 in Y 2021 alone.
With the emergence of centralized social media networks and social journalism platforms, creators got the freedom to put their content out there in just a few clicks. They did not have to build and maintain a website anymore, while in-built tools allowed them to get exposure and reach their following.
A Key thing about the human psyche is that we are happy with what we have unless we know there is a better alternative.
With the rise of DAOs, decentralized autonomous organizations dubbed, “the ultimate combination of capitalism and progressivism,” timely.
The concept was created in Y 2016, by a group of developers who took the idea of cryptocurrencies to the next level. Sharing the same level of trustlessness, DAOs would offer a transparent governance system, as well as fair and fast distribution of the organization’s funds, cutting bureaucratic Red tape.
Unlike traditional organizations, DAOs have no typical management structure or board of directors and are funded by venture capital based on open-source code. DAO projects involve both volunteer participants and passive followers, often shepherded by paid core contributors.
On Top of that, DAOs can help eliminate human errors or manipulations with investor funds. Participants can decide on how to use the funds locked up on the blockchain by taking part in a transparent, automated voting process.
With the help of DAOs, creators can connect directly with their audiences and analyze how their work is distributed and consumed. Fans and investors can become the new-age mercenaries, funding their favorite creators and making sure more of the content they love is brought to the digital world. By pooling their money and setting rules for sharing and distributing assets, resources and risks, they can open new frontiers for investment into the creative economy.
The empowerment of independent creators and minorities is another benefit DAOs offer.
They can syndicate a community-based investment system that provides communities with the tools to work with decentralized investments, has already seen the creation of DAOs that support female, non-binary founders, as well as emerging/overlooked markets and scientific research. That is a big step toward supporting minorities and rising equality and representation in the market.
And so, DAOs contribute to the rise of a phenom well-known to the traditional art world i.e., ‘neighborhood coolness.’ Imagine a neighborhood as a freshly created DAO. Then imagine artists coming to this place and starting to create. Bit by bit, the space gets full of ‘weird and creative’ people, and lights up with concerts and galleries. It becomes hip!
Artistic neighborhoods have a certain charm to them. However, just as the real-world cool neighborhoods fall to gentrification, digital gentrification is the bane of hip digital neighborhoods. We have seen it play many times along the history of the web. The moment digital communities become the place to be, big corporations and censorship come in stripping them of the creatives and quickness that come with diversity and freedom of expression, making them bland.
This does have to be the case, as you cannot stop a DAO, you can only fork it. Now, imagine a DAO that only grows and grows because gentrification is not possible. Because the moment someone tries to co-opt it, it is forked and moved away.
Following the Key principles of web 3.0, DAOs click perfectly with the creator community, forming a more equitable ecosystem, giving independent creators access to new revenues and opening an opportunity for truly decentralized content production.
Have a prosperous cay, Keep the Faith!