Current State and Challenges in The Creator Economy
Today's creator economy is bustling with potential, yet it faces significant challenges. Creators, ranging from artists and influencers to educators and innovators, are often constrained by platform limitations, inconsistent revenue streams, and a lack of direct engagement with their audience. Traditional platforms, while providing a stage for visibility, often fall short in offering creators full control over their content and its monetization. Furthermore, the digital divide between creators and their communities has widened, with genuine interaction often overshadowed by algorithm-driven content distribution.
The current model also presents challenges in terms of fair compensation, where creators struggle to gain a sustainable income despite having a significant following. This issue is compounded by the lack of transparent and equitable systems for content valuation, leaving creators at the mercy of platform policies that may not always align with their best interests.
Few web3 applications centered around the creator economy have truly succeeded. One critical issue at the heart of this struggle is the lack of liquidity. Unlike large cryptocurrency exchanges that thrive on liquidity, the creator economy often falters due to its unsustainable reliance on creators earning from followers with the expectation of token airdrops.
As the bear market looms and token prices plummet, the allure of creator and token airdrops diminishes for users, revealing a fundamental flaw in the existing model.
Opportunities Identified by CrossSpace
Despite these challenges, the creator economy is ripe with opportunities for innovation, especially within the realm of SocialFi. CrossSpace 2.0 is at the forefront of this revolution, harnessing the power of bonding curves, NFTs (Non-Fungible Tokens), and “assetization” to redefine creator value and community engagement.
This new landscape opens avenues for creators to have true ownership of their content, engage directly with their audience, and benefit from more equitable and transparent monetization models. The integration of social media with decentralized finance not only empowers creators financially but also fosters a more connected and engaged community.
The rise of SocialFi also brings the promise of a more democratized and decentralized approach to content creation and distribution. This means moving away from the centralized control of traditional social platforms, thereby reducing biases and promoting a more inclusive and diverse creator ecosystem.
As we navigate this promising yet complex landscape, CrossSpace 2.0 is committed to addressing these challenges head-on, while leveraging the opportunities to empower creators and redefine the relationship between content creation and financial reward. Our vision is to build a platform that not only adapts to the evolving needs of the creator economy but also sets new standards for creator autonomy, community engagement, and sustainable growth.
Friendtech, operating on BASE, stands as a revolutionary Socialfi project reshaping the landscape of traditional Socialfi and the creator economy. It introduces a smart contract-driven Bonding Curve model that allows for liquidity injection from users engaged in creator key trading, effectively eliminating the need for market makers, a requirement on conventional exchanges. Friendtech has achieved an impressive bought trading volume of 246 million as of October 28th, 2023 (Source: Dune Analytics).
Inspired by Friendtech and driven by our mission to establish a sustainable economic model for a broader range of creators, CrossSpace has introduced the Dual Bonding Curve model. This innovation enables users to trade both Creator content and Creator keys bundled together, ushering in a new era of economic sustainability and opportunity for creators and their communities.
Note: Assetization means converting output of individuals to assets.