What is the Unique Value of Creator Coins in a Cryptocurrency and NFT World?
First off let's define what a creator coin is....
A creator coin is a digital currency created on a sidechain independent from a social platform, leveraging the blockchain empowers the coin creators to develop their own economy. Unlike traditional membership models or platform-based tipping, this economy is agnostic from a social platform. The value of the coin increases as the creator's community and brand grows, rewarding the creator and the supporters, fans, and super fans. I breakdown the importance of being agnostic in this recent blog post here.
I look at this as a new digital ecosystem that pushes beyond traditional monetization that empowers the mindset conveyed in this "1000 True Fans" essay written in 2008, to a place where it can be disruptive as the creators and the fans grow together and be rewarded financially.
Rally's CEO Bremner Morris explained what Rally is doing in this way:
"Rally empowers creators, artists, celebrities, athletes and more to launch their own crypto-economy and to re-imagine fandom as a symbiotic relationship where the entire community participates in launching and growing a digital economy."
How are creator coins or social tokens being used today?
There are many different kinds of coins. The most basic method is transactional, where the creator allows coins to purchase coaching, content, or products. Some give exclusive access as a benefit for those who hold the coin as an added bonus for those who want to show their support for a creator.
The innovation around how coins can be used is still at its infancy stage, but we are seeing some using them for voting on NFTs, shoutouts, and mentions on YouTube, Twitch, or a weekly newsletter. I believe the innovation in this space is what's most exciting, and those creators and communities that are willing to push what's possible when it comes to selling exclusive access, content, and events will open up new paths to monetization we haven't even thought of yet.
A couple of great examples of creators on Rally.IO innovating that I recommend checking out are:
$Play coin where not only do you get access to an exclusive discord but they have Game Pitch Contests and Game Jams with special prizes for coin holders. You can also use the coin to play a special Aracde game.
$TILT coin: You can subscribe to TheTilt and get $TILT for referring others to subscribe to the newsletter founded by content genius Joe Pulizzi. You can also use your coin to promote your cause or get an autographed copy of Joes book! Use my referral link here so I can increase my holding of $Tilt!
$ART coin: The Art coin provides you exclusive access to a private discord but that isn't the real magic. The real magic is the access to amazing creators of all walks of life many who you can pay for their services using $ART coin as a true community coin as it's found Matty Mo is truly pushing what's possible within the Rally ecosystem!
$Allie coin: Allie Strasza a card games Twitch stream superstar has blown my mind with the community and creative uses of the Allie coin she has implemented. You can get shoutouts, play games against her and she also rolled out her own NFT with a special badge. Allie is for sure one to watch in this space and she also launched a Allie coin-focused YouTube channel that you can subscribe to here.
New creators are being added to the Rally.IO creator coin community weekly and some notable recent ones include the band Megadeath, BTmusic, Jen Stark $Move Brian Clark and many more. Check out the entire list of creators here!
How does a creator of a coin earn revenue with a social token?
The money earned by the creator coin comes from voluntary contributions, value flows from transaction fees and a small gap between the market price of the coin and what you sell it for.
A band may create a social token for each album they release. The band could set a goal number of coins to sell before launching the sale. They could set the price of coins at 1 coin per $0.01, so if you buy 200 coins at $20, it costs $4,000. Then when they release their album, they can give access to bonus tracks or other exclusive items to those who hold at least 20 coins.
The band can then sell their token for both fiat and crypto to those who want to show their support and believe in the token's long-term value.
Now you might be thinking that sounds like the fan club model that has been around for years. The creator economy leveraging creator coins differs from traditional subscription models, or tipping options is the fans aren't just there to help. They are there because they want to be part of the creator's community and a stake in that creator's success through the coin's value.
For Rally.IO creators (I am one with $ADHD), there is also the added bonus of HODL rewards distributed weekly to those simply holding coins in their portfolio.
What are the future of creator coins and social tokens?
The decentralized economy empowered by the blockchain will transform both one-to-one relationships between creators and fans and require brands and teams to rethink how they create experiences for their fans and superfans.
How do NFTs fit within the creator economy?
NFTs or Non-fungible tokens are one type of token that can be traded between users and shared across platforms. These assets could represent items like stickers, merch, limited edition artworks, etc. This is where having a creator coin would provide more value because those NFTs now become more valuable as they're attached to a community that has a creator coin.
Rally.IO Now Has NFT Marketplace with NO GAS
The best use case and implementation of NFTs + creator coins IMHO is being led by Gary Henderson the founder of the $Gary coin. Not only has he found creative ways to empower his community on discord with rewards and giveaways he launched an OG Collection of Giraffe NFTs that come with a list of benefits for those that hold one of the first 100 and each has sold out within seconds.
The community has taken on its connection with the Giraffe NFT which is everything a community needs in regards to empowering it's superfans! I'm a proud holder of pick #99 and #84 Giraffe NFTs and thankful for Gary's friendship and guidance as I plan to launch NFT's for my community!
What are the pros and cons of creator coins or social tokens?
Pros: Creators can earn revenue with a social token and aren't tied to a platform or content medium. Fans have a way to support their favorite creators while being rewarded in the short-term with perks and benefits and long-term with the creator's success.
Cons: Creators for far too long have focused on building a following on one platform, which makes building a loyal community a heavy lift. This plus the fact that the education around cryptocurrencies and NFTs is in its infancy and, in many cases, can be confusing to those who aren't thinking beyond traditional monetization models.
When I applied for a creator coin back in February 2020 on Rally.IO, I approached it as an add-on functionality to the Speaker Masterminds and Fanzone community I was already building. After months of testing different messaging and rethinking every aspect of our content and community strategy at iSocialFanz. We've realized that our SuperPOWERED focus and use of $ADHD coins will transform every part of my business, including my work as a digital futurist and keynote speaker.
Today associations and brands hire a speaker for their corporate event or association conference and then purchase the speaker's book as an added bonus for attendees and revenue stream for the speaker.
Imagine if attendees were gifted limited-edition merchandise and/or book linked to an NFT that provided exclusive access beyond the event or conference. Those who acquire these NFTs could trade them in for additional products or services the event or creator offers. The event could also incentivize its members to take action and reward those who do other steps beyond the event with additional NFTs or creator coins that can be traded for more exclusive offerings. As you can see, the possibilities are endless!
I would love for you to check out what I'm building both with my SuperPOWERED creator economy and my Fanzone community!