Decentralized Social

<p>It is now more evident than ever that web2 social media platforms were not designed with creators in mind.</p><p>Instead, these platforms were created to generate advertising revenue for stakeholders, with creators being an afterthought.</p><p>Most content creators on platforms such as Facebook, SnapChat, Instagram, and TikTok earn next to nothing for their work, while these platforms make billions of dollars in advertising revenue.</p><p>However, when creators move on-chain, there becomes numerous ways to get fair compensation and effectively monetize their content.</p><p>One of the most promising methods is through Creator Coins.</p><p>Let&#39;s explore what creator coins are, their significance in the creator economy, some real-world use cases, and the future of creator coins and DeSo.</p><h2 id="header-0">What are Creator Coins?</h2><p>Creator coins are a novel asset class, tied to an individual&#39;s reputation rather than a company or commodity.</p><p>Content creators can utilize these coins to:</p><p>1) Foster and reward their audience and loyal fans</p><p>2) Compensate themselves for creating content</p><p>To understand why creator coins are revolutionary, it&#39;s necessary to first understand the monetization issues within the web2 creator economy.</p><p>In Web2, it&#39;s exceedingly difficult to derive value directly from your audience due to platforms like Youtube, Instagram, and TikTok which rely on advertising and act as intermediaries between creators and their audiences.</p><p>Fortunately, Web3 and blockchain technology now allow creators to bypass these intermediaries and interact directly with their fan base.</p><h2 id="header-1">Why Use Creator Coins?</h2><p>Once you understand what creator coins are, you might wonder why they&#39;re necessary or why anyone would want to use them.</p><p>As The Generalist (<a href="https://twitter.com/thegeneralistco" rel="noopener noreferrer nofollow">&#64;thegeneralistco</a>) originally explained, there are five main reasons to tokenize:</p><p>1) Raising funds</p><p>2) Building an investor base</p><p>3) Attracting attention</p><p>4) Aligning group incentives</p><p>5) Capturing value more effectively</p><h2 id="header-2">Raising Funds:</h2><p>The most obvious reason is to raise money. Creator coins allow creators to fund themselves, which can be simpler than seeking traditional or conventional funding methods like brand sponsorships or selling merch.</p><h2 id="header-3">Building an Investor Base:</h2><p>Creator coins also help to establish an investor base. The difference between a fan and an investor is the latter&#39;s financial stake.</p><p>Variant Fund co-founder and creator economy thought leader, Li Jin (<a href="https://twitter.com/ljin18" rel="noopener noreferrer nofollow">&#64;ljin18</a>), argues that creators only need 100 true fans to earn a comfortable living.</p><p>If you can get 100 people to invest in your creator coin, they&#39;ll likely become dedicated fans who support your journey, as they now have a financial incentive to do so.</p><h2 id="header-4">Attracting Attention:</h2><p>Creator Coins, being unique assets, naturally garner attention. As a creator, you&#39;re always seeking to draw attention to your work, and using creator coins is an effective way to achieve this.</p><h2 id="header-5">Aligning Incentives:</h2><p>Much like building an investor base, creator coins help align incentives around desirable activities. This point is crucial if you&#39;re trying to build a social club or community around a social token.</p><h2 id="header-6">Capturing Value More Effectively:</h2><p>The final main reason to tokenize is that creator coins capture value more effectively than traditional methods.</p><p>Creator Coins provide dynamic opportunities for creators to monetize their work and reward their investors, compared to flat rate membership subscriptions to private communities, for example.</p><h2 id="header-7">The Benefits of Creator Coins on DeSo</h2><p>DeSo is designed to support social applications scaling to billions of users and assist creators in building a devoted following.</p><p>Our focus on empowering creators puts us at the forefront of its field.</p><p>In the past, early adoption of platforms like YouTube, Twitch, and TikTok gave many creators an edge in Web2.</p><p>However, the landscape is now evolving.</p><p>As social networks and the creator economy shift to Web3, it&#39;s the perfect time for creators to establish an on-chain identity.</p><p>An on-chain identity has another advantage: resistance to censorship. Decentralized platforms encourage greater freedom of speech and expression.</p><p>They allow various opinions and perspectives to coexist, promoting a more inclusive online experience. Plus, you no longer need to worry about shadow bans or unexplained account access loss at a platform-level.</p><p>As a DeSo creator, you truly own your audience and social graph, and you only need to build an audience once.</p><p>You can easily transfer your audience to any of the 100&#43; applications running on the DeSo blockchain.</p><p>Whenever a new app is developed, you can simply join and bring your audience along. That&#39;s the beauty of posting on-chain.</p><h2 id="header-8">How to Get Started</h2><p><a href="https://diamondapp.com/" rel="noopener noreferrer nofollow">Diamond</a> is an application that runs entirely on the DeSo blockchain and incorporates creator coins into your DeSo account.</p><p>When you sign up for Diamond, which is like the web3 version of Twitter, you automatically create a creator coin.</p><p>Your followers can purchase these creator coins and invest in your potential success.</p><p>As you grow as a creator and your content improves, the value of your creator coin could potentially increase, benefiting both yourself and your audience who invested in you.</p><p>The best part is that creating an account on Diamond is extremely easy and only takes a few clicks of a button. This means you can launch your creator coin in a matter of minutes.</p><p>But the best is yet to come, as we will soon be launching our largest upgrades ever to the DeSo Blockchain.</p><h2 id="header-9">Future of Creator Coins</h2><p>While Creator Coins on DeSo are an incredibly innovative product, they have significant improvements to consider.</p><p>Earlier this year, we released our Creator Coins v2 proposal which moves Creator Coins v1 from an AMM-based bonding curve to a first-of-its-kind, fully on-chain orderbook.</p><p>This would provide all of the advantages of a traditional order-book that most markets run on today, allowing anyone to submit limit orders at any price, thus solving the steepness concerns associated with the pure bonding curve approach and providing better price discovery.</p><h2 id="header-10">Next Killer App</h2><p>Of course, infrastructure means nothing if you don&#39;t have users. This is why we are planning to launch our biggest consumer app after Revolution PoS ships.</p><p>Our goal is to be able to handle 10 million daily active users.</p><p>Stay tuned in to the DeSo ecosystem in the coming weeks to learn more about what’s to come!</p>

Why We Need Creator Coins Now More Than Ever

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Decentralized Social

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