January 31st, 2022

During the web2 phase, the term “creator economy” was coined because of the businesses built by social media content creators, bloggers, and anything that fit under influencer. I wanted to explore the potential dynamics that could emerge from web3 in the creator economy and whether this movement is going to drive the next 100M users onto web3.
To begin analysis, we should look back on how a few creators earned money on web2 over the last 15 years:

  • A musician lists their music on SoundCloud. If they have a decent following, they can start a Patreon, or list their music on streaming services like Spotify. Since Spotify doesn’t pay well enough (artists need 3.5 million streams per year to achieve the annual earnings for a full-time minimum-wage worker of $15,080), the musician can sign to a record label that will pay them upfront money in exchange for publishing music that the artist cannot own. Musicians are relying mainly on label support as streaming services have changed how people access music. If a musician chooses to stay independent, they would not be able to sell individual records easily, but as a music consumer, I can access to most music I care about for USD $9.99/month. Spotify’s priority in the game is to bring as much music to their customer as possible while keeping their subscription prices competitive.
  • TikTok creators have access to the TikTok Creator Fund, which pays very little (Zach King, an extremely popular creator on Tiktok who has 67 million followers and makes around 20 million views per week makes around $23 per week). TikTokers can partner with companies and advertise that company’s products. Alternatively, they can make a YouTube channel to diversify their income source with longer-form content. Creators that have amassed a community can open a Patreon and get a monthly recurring income. TikTok provides creators with an extensive set of tools, an audience, and an algorithm that can push anyone into stardom. However, TikTok’s mission isn’t for creators to be able to make a living off of their platform.
  • Youtubers, depending on the different categories of content that they produce, have access to different CRM rates. E.g. if you make Tech content, you could be making $11 for every 1000 views. Similarly, if you are making entertainment content, you could be making $2 for every 1000 views. If your channel is popular enough, you could be getting brand deals that pay anywhere from $100 to $100,000. You can also create a Patreon to support yourself if you don’t meet YouTube’s creator monetization requirements, and you can create merch and sell that to your audience. YouTube has been the platform where independent video creators go to for a longer career as it has a stable payment system and it helps creators convert their audience into communities. Although YouTube has a high barrier of entry for channel monetization (be at least 18 years old, have advertiser-friendly content, 1000 subscribers and 4000 hours of watch time in the previous 12-month period), YouTube cares for creators to be able to make a living off of creating content.

In the above examples, the revenue stream is driven through the platforms and then distributed to the creators. This helps create an abundance of content for platform visitors to consume, but it holds the creators’ pay behind specific rules and rates.

Platforms gather money from audiences and advertisers before distributing revenue to creators.
Platforms gather money from audiences and advertisers before distributing revenue to creators.
January 15th, 2022

My opinions are shaped around the mission that web3 needs to have a greater user-acceptance.

The world of crypto has many flaws - exorbitant gas fees, poor user experience etc. Most of the issues are technical and can eventually be solved. However, web3 relies on communities that are built on trust - trust on the founder, trust on the project’s mission and trust on other community members. When the community founders and ambassadors see their communities as a cash grab opportunity, we see the failures of the web3 idealism.

A rug pull occurs when creators of a project suddenly stop backing it. As a result, the price of the token/NFT falls to zero, which leads to massive losses for community members.
An example of a rug pull: Jack started a project and generated 1 million tokens worth $0.01 cents each. His project has a market cap of $10,000. Jack distributes 200 thousand of these tokens to his twitter followers at the price of $0.01/token, and keeps the rest of the 800 thousand tokens to himself. Because there were transactions happening on that token (Jack distributing the tokens, and the 5000 twitter followers sending the tokens between themselves), the price of the token goes up to $1. Now, Jack’s tokens are worth (800,000 x $1 =$800k). The market cap of the project is $1 million. His community of token holders is excited, but they don’t know what Jack is about to do next. Jack decides to sell all of his tokens and pockets the $800k. Since Jack was the majority shareholder (considered a whale 🐳), he causes the value of the token to drop from $1 to $0.0001 as the volume of that token being sold was enormous. The people that now own the token and paid money for it see their investment’s value get reduced by 100 times. Jack just did a rug pull.

What Jack did was:

January 10th, 2022

Rainbow and ENS pairing up is a big deal.

Why is Rainbow a big deal - they have built a pretty and user-friendly app that got adopted by the web3 community. “Pretty” and “user-friendly” are rare to see in the crypto world at this early stage, so that was already a market advantage.
Users are able to view their NFTs and other crypto assets through their wallet on the Rainbow app. It feels secure and robust, while allowing me to get my business done. Although it’s far from perfect, the engineering gives a promise for a great future.

Why is ENS a big deal - people’s ethereum addresses are usually as follows: E.g.
*What if the address was simpler E.g. *doorvesh.eth *
That’s basically ENS. ENS stands for Ethereum Name Service, and it allows users to buy domains like doorvesh.eth. Users can get a personalized ethereum address on apps.ens.domains, and it makes transactions like sharing cryptocurrencies and NFTs as simple as sharing your ens address.

Unlike owning a cashapp tag (e.g. $doorvesh) or a twitter handle, owning an ENS address is like owning an asset. Owning an ENS domain occupies space on the blockchain, and having your own custom address is as significant as owning an NFT, or a cryptocurrency. That is why you can currently view your ENS address in your Rainbow wallet right now.