The downsides of Creator Economy
The downsides of the Creator Economy include challenges such as saturation on popular platforms, unequal revenue distribution, and the struggle for smaller creators to gain visibility.
Last updated
The downsides of the Creator Economy include challenges such as saturation on popular platforms, unequal revenue distribution, and the struggle for smaller creators to gain visibility.
Last updated
The Creator Economy stands as a dynamic and ever-evolving economic landscape. As social media users, we often find ourselves in dual roles as both consumers and content creators. The reality is that reaching the status of a top creator on a platform opens up diverse revenue streams across various channels. An extensively followed account holds enduring value, ensuring ongoing opportunities that surpass those available to an account with limited reach.
In the crypto domain, content creation, consumption, and sharing transcend geographical boundaries, serving as an influential conduit for knowledge transmission. Participants in the crypto space continually update their knowledge through platforms like Twitter, Discord, and Telegram. This dynamic has led to a persistent demand for influencer marketing, where projects often compensate creators based not on their actual values or contributions but primarily on their follower count.
However, the truth is that not everyone can monetize the content creation game. To generate income from content creation, an account must attain a certain level of growth. A study unveiled that merely 4% of top creators on Creator-Social-Platforms can generate income, making it exceedingly challenging for the rest to monetize their content creation efforts.
Evidently, there exists a notable gap in the creator economy, especially for medium and small accounts, as current social platforms are saturated with the superstar phenomenon. These middle-class of creators require a boost to expand their opportunities for earning money through content creation.
Inspired by Li Jin's article (Variant Fund), the reduction of wealth concentration in the top 1% enhances both a nation's sustainability and a platform's defensibility. Equitable wealth distribution prevents competitors from luring away top creators, ensuring overall business stability.
Economically speaking, funding the long tail of the creator economy can create long-term and cost-effective business impacts compared to funding top creators, who can already monetize in myriad ways and are highly sought after by many platforms.
As creator platforms thrive by offering opportunities for everyone, SOULS Protocol developed a distinct incentivization scheme for emerging creators. This enhances fan engagement and leverages their loyal community through the innovative Soulbound token. The SOULS protocol is believed to become a game-changer for content creation platforms in both Web2 and Web3.
