Ethereum co-founder Vitalik Buterin has proposed a brand new creator token model that mixes decentralized autonomous organizations (DAOs) with prediction market mechanisms to incentivize the creation of upper quality content.
Creator tokens or content coins are blockchain-based assets that may grant fans a share of ownership, access rights and even royalties for the content creator's work, which will be in the shape of posts, photos, music or videos.
However, Buterin said in a post on Sunday
To combat this, Buterin said one idea could be for content creators to introduce tokens and apply for them to curated creator DAOs, where members resolve what content to just accept, while speculators profit by predicting which creators or content shall be approved.
Accepted content creators could then see the worth of their coins increase because the DAO burns their tokens, reducing supply and increasing scarcity.
Source: Vitalik Buterin
He noted that lots of the top creator coins on existing platforms like BitClout and Zora are run by celebrities or people of “very high social status,” making it difficult for creators to succeed based on their performance alone.
Another example that Buterin doesn’t mention is Friend.tech – an Ethereum Layer 2-based SocialFi app that permits creators to share content in private chat rooms that will be accessed via tradable keys.
However, some criticized the platform as the value of the keys was mainly driven by speculation.
Friend.tech closed in September 2024 after a big decline in activity and its native token falling 95% from its peak.
Focus on niches to draw specific audiences, suggests Buterin
Buterin also really helpful that DAOs avoid attempting to capture your complete market and as an alternative concentrate on specific varieties of content, be it short videos or long texts, and the content ought to be aimed toward a selected country or political audience, for instance.
Buterin added: “The goal is to have a bunch larger than a creator that may construct a public brand and collectively negotiate for revenue opportunities, but at the identical time sufficiently small that internal governance is manageable.”
The token speculators would also support the DAO by helping to publish high-quality content that is worth it.
“Individual speculators can stay in the sport and thrive to the extent that they will well predict the actions of creator DAOs,” Buterin said.
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