Opinion: Web3 Empowers Individuals to Monetize Their Passions within a Rewarding Ecosystem

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We are currently halfway through a year that has been challenging for Big Tech. From threats of TikTok bans to reports of Facebook data breaches and revelations of Big Tech platforms trading and selling user data, it seems like the industry is facing numerous issues. However, the latest earnings report from the leading tech platforms tells a different story.

Thanks to increased user engagement and brand advertisements, the top five Big Tech companies have posted profits exceeding $100 billion. Unfortunately, this success is not reflected in the earnings of content creators on these platforms. Less than 0.5% of creators are estimated to earn a decent income, collectively earning less than $10 million. This stark contrast between the earnings of Big Tech and creators highlights the flaws in the current monetization system.

But there is hope. The creator economy is expected to double in size over the next four years, surpassing the growth rate of the gaming industry. This indicates a promising future for creators. However, there is still a significant issue of imbalanced revenue distribution within the Big Tech and content creator ecosystem. Similar to the real world, where the top 1% benefit greatly from the contributions of the remaining 99%, the majority of creators are often left with meager earnings.

Most creators, apart from the top-tier influencers, find themselves at the bottom of the pyramid. This disparity needs to be addressed, considering the immense effort creators put into their work on a daily basis. From creating fresh content to analyzing user data and adapting to algorithm changes, being a creator is far from an easy task. Additionally, creators face the uncertainty of being penalized or losing their intellectual property due to hidden policies. Being a creator is not as glamorous and effortless as it may seem.

The concept of building loyal communities to support creativity is not new. It has existed since Shakespearean times and continues today through crowdfunding campaigns and community-based platforms. So, what can web3 offer in this regard?

While much has been said about the dominance of social media platforms, the truth is that technology comes with significant costs, especially when dealing with user-generated content and multimedia. Companies need to invest in various aspects such as cybersecurity, regulatory compliance, research and development, product development, and cloud storage, not to mention hiring top talent to handle scalable systems. This may explain why social media giants retain a large share of earnings. However, this doesn’t mean that creators have to miss out on potential earnings.

If distributing revenue equitably is the key to increased user participation, then decentralization holds great value. We are already witnessing creators shifting their focus from brand partnerships to building their own communities that appreciate and financially support their creativity and personal connection.

This is where web3 SocialFi systems make a difference. By enabling ownership through token-gated access and linking the token’s value to a creator’s digital equity, these systems create a thoughtful and lucrative ecosystem. Each interaction within this ecosystem adds value to the digital space and rewards both creators and users.

SocialFi platforms are leading the way in democratizing the monetization of digital content and shifting the dominance from Big Tech to a creator-owned model. Their tokens serve as a form of social currency and, although they have had mixed success, the initial excitement surrounding these platforms indicates their untapped potential.

With the increasing mainstream attention on Bitcoin and other cryptocurrencies, a significant number of web3-focused creators have emerged. However, web3 is still unfamiliar to most users, even those who are digitally savvy.

Fortunately, digital creators are leveraging platforms like X, Telegram, Instagram, and YouTube to educate and build their brand value while spreading awareness about web3 and cryptocurrency. While these platforms offer revenue-generating opportunities, the prospect of decentralized projects with innovative web3-focused communities and tokenized ecosystems is particularly exciting for creators.

Today, users want to be active participants in engagement with creators and be rewarded for their involvement. Tokenized platforms add significant value by enabling engagement and monetization models that foster loyal communities. These platforms offer a range of token utilities that benefit both fans and creators, allowing creators to provide a rewarding experience and value system that engages users in their growth and success.

However, building a democratized earning system comes with challenges. It requires a transparent reward system that considers the quality of engagement value and avoids devaluing user participation. Platforms must continuously upgrade features and develop in-platform tools that advance the web3 aspect of SocialFi platforms.

Ultimately, the success of this sector lies in the management and vision of the founding teams, along with well-designed tokenomics. Some SocialFi platforms have lost favor due to poorly designed tokenomics and unviable airdrops. Despite these setbacks, the significant interest among early users shows a demand for creator-focused platforms where both creators and users benefit.

In the web3 era, social earnings will have different meanings for different users. The level of incentivization that digital users, especially creators and their followers, feel will determine the success of platforms in this new era of social engagement. This era promises to monetize passions and bring greater financial independence to creators.