Will 'creator tokenization' be the next billion-dollar narrative?

This article explores how creator tokenization allows fans, investors, and brands to directly participate in creator growth, driving market-based transactions and value discovery. With the creator economy surpassing $500 billion in size, the tokenization model allows brands to identify early partnership opportunities and leverage DAO governance to allow fans to co-create business decisions. This article is from hitesh.eth, the founder of dyorcryptoapp, and was compiled, compiled, and contributed by BlockBeats. (Synopsis: AI narrative hype has cooled temporarily, which new projects are worth studying in advance?) (Background addition: Take stock of the top 10 narratives that will affect the world of encryption in 2024) A creator is essentially like a startup, but one key difference is this: in a startup, investors can invest and bet on its rise at different stages, while in the creator space, fans or investors have not been directly involved in their growth in the past. Whether it's a startup or a creator, RISE is all about whether consumers are willing to pay for their products or services. A startup's product or service usually revolves around a problem to be solved, while the creator's product is their content itself. As a product, this content is adapted to different interest-driven market segments to meet the needs of various audiences. Speculative characteristics of startups and creators Startups are in a highly speculative environment, with investors betting on early-stage companies in the hope that they will expand quickly and become profitable. The valuation of a startup often depends on market appeal, user rise, and revenue potential. This speculative logic also applies to creators, but there is currently no formalized investment structure that allows fans or traders to participate in the creator's growth. The lack of liquidity in the creator economy means an untapped market opportunity – if creators can be tokenized, speculators can trade their growth potential in the same way as start-ups. Speculation on creators can become a significant opportunity for traders and investors. Just as startups go through hype cycles and their valuations change with market acceptance, creators go through similar cycles – influences rise due to virality, strategic partnerships, and media exposure. A creator's reputation, engagement rate, and ability to convert traffic into revenue are all quantifiable metrics that can serve as a speculative basis for their tokenized value. The Creator's 0-1 and 1-10 Journey Creators have a similar growth path to startups, going through stages 0-1 and 1-10. Stage 0-1: Meaning breaking down barriers, entering market segments, building initial audiences, and continuously optimizing your content strategy. Many creators stop there, just as many startups fail before they find a product-market fit. Stages 1-10: Mean scaling at scale. At this stage, creators begin to build brand collaborations, obtain commercial sponsorships, and monetize traffic. At this stage, the creator is no longer just a content producer, but gradually grows into a complete business entity. This shift is similar to how a startup grows from a small team to a full-fledged company. Today, many consumer startups and creators are part of the same ecosystem, with similar goals: to sell two products to users – the content itself, and branding that is integrated into the content. The size and future potential of the creator economy The creator economy has grown into a multi-billion dollar industry and is expected to exceed $500 billion in the next decade. Currently, millions of creators produce content every day, and brands are investing heavily in influencer marketing. In 2023 alone, global influencer marketing spend exceeded $20 billion, and this figure continues to rise as brand budgets shift to digital native advertising. The tokenization of the creator economy promises to spawn an entirely new asset class. The valuation of the creator token market could easily reach $100 billion in the next three years as more creators adopt token-based monetization models. Building a Liquidity-rich creator token marketplace will provide investors with a new investment field that enables them to bet on emerging influencers and form a price discovery mechanism based on social influence, audience rise, and brand collaboration streams. Creator Token and Brand Cooperation From a brand perspective, it is crucial to lock in creator cooperation as early as possible. Brands often want to build partnerships at a discounted price before creators become popular. Once tokenized, brands can benefit from their influence rise by purchasing and holding their tokens. This not only gives brands priority to partner, but also ensures that they enjoy more valuable ad delivery resources when creators succeed. If the value of creator tokens rises with influence, brands can also profit from discounted sponsorship fees and capital appreciation while holding these tokens. This model makes brands more willing to invest in potential creators over the long term, rather than just paying for one-time advertising. Fans as Brand Managers: Creator Cooperation for DAO Governance With the introduction of the DAO governance model, fans can also deeply participate in the business decisions of creators, revolutionizing the way brands work together. Fan voting decisions: Creators' brand collaborations will be voted on by DAO members (i.e., Tokenholders) rather than unilaterally chosen by creators. This ensures that brand engagements align with the creator's audience needs and values. Revenue sharing: Revenue generated by brand collaborations can be distributed to governance tokenholders through the stake reward mechanism, making them direct stakeholders in the growth of creators. As long as the creator is still hot, its influence and traffic will rise, further driving the Tokenvolume and investor interest, thereby increasing the value of the creator token. The DAO will act as the brand manager of Decentralization, ensuring transparency, fairness and a sustainable monetization model for creators and their communities. The future of creator tokenization Creator tokenization is not only a conceptual innovation, but an inevitable trend in the development of the digital economy. The rise of Web3, Decentralized Finance and tokenized assets has created a perfect environment for the prosperity of the creator token market. The speculative marketplace built around the creator economy could fundamentally change the power structure of social media, bringing creators, brands, and fans together in an entirely new financial system. Related reports AI-driven + Block chain empowerment, how does Story reshape the rules of the traditional IP market? Why do I feel so confident in AI Agent? How to break the traditional on-chain narrative logic Cryptocurrency panorama: 8 major development states and 6 major narrative inventory 〈Will "creator tokenization" be the next billion dollar narrative? This article was first published in BlockTempo "Dynamic Trend - The Most Influential Block Chain News Media".