Categories
NFT

Inside Afterparty: The Community Behind The First-Ever NFT Gated Festival

In Web3, you see plenty of variety when it comes to DAOs and platforms. Both general and specific applications of Web3 tech are being developed, along with the grey area in between.

What is Afterparty?

Afterparty is somewhere in the middle; they’re focused on the creator economy, but are building obscurely enough to maximize the depth of what they’re accomplishing. On their site, Afterparty describes itself as “…a community of innovative creators, artists, and builders with a Web3 platform for accessing physical and virtual experiences through NFTs. [Afterparty is] building a platform where anything is possible and creativity flourishes.”

After combing through their socials, you’ll notice Afterparty links with influencers and celebrities in a way that most brands couldn’t replicate, even if they tried.

<div class =”code”><blockquote class=”instagram-media” data-instgrm-captioned data-instgrm-permalink=”https://www.instagram.com/p/CY13ASMPCEA/?utm_source=ig_embed\u0026amp;utm_campaign=loading” data-instgrm-version=”14″ style=”background:#FFF;border:0;border-radius:3px;margin: 1px;max-width:540px;min-width:326px;padding:0;width:99.375%;width:-webkit-calc(100% – 2px);width:calc(100% – 2px)”><div style=”padding:16px”> <a href=”https://www.instagram.com/p/CY13ASMPCEA/?utm_source=ig_embed\u0026amp;utm_campaign=loading” style=”background:#FFFFFF;line-height:0;padding:0 0;text-align:center;text-decoration:none;width:100%” target=”_blank”> <div style=”flex-direction: row;align-items: center”> <div style=”background-color: #F4F4F4;border-radius: 50%;flex-grow: 0;height: 40px;margin-right: 14px;width: 40px”></div> <div style=”flex-direction: column;flex-grow: 1;justify-content: center”> <div style=”background-color: #F4F4F4;border-radius: 4px;flex-grow: 0;height: 14px;margin-bottom: 6px;width: 100px”></div> <div style=”background-color: #F4F4F4;border-radius: 4px;flex-grow: 0;height: 14px;width: 60px”></div></div></div><div style=”padding: 19% 0″></div> <div style=”height:50px;margin:0 auto 12px;width:50px”></div><div style=”padding-top: 8px”> <div style=”color:#3897f0;font-family:Arial,sans-serif;font-size:14px;font-style:normal;font-weight:550;line-height:18px”>View this post on Instagram</div></div><div style=”padding: 12.5% 0″></div> <div style=”flex-direction: row;margin-bottom: 14px;align-items: center”><div> <div style=”background-color: #F4F4F4;border-radius: 50%;height: 12.5px;width: 12.5px”></div> <div style=”background-color: #F4F4F4;height: 12.5px;width: 12.5px;flex-grow: 0;margin-right: 14px;margin-left: 2px”></div> <div style=”background-color: #F4F4F4;border-radius: 50%;height: 12.5px;width: 12.5px”></div></div><div style=”margin-left: 8px”> <div style=”background-color: #F4F4F4;border-radius: 50%;flex-grow: 0;height: 20px;width: 20px”></div> <div style=”width: 0;height: 0;border-top: 2px solid transparent;border-left: 6px solid #f4f4f4;border-bottom: 2px solid transparent”></div></div><div style=”margin-left: auto”> <div style=”width: 0px;border-top: 8px solid #F4F4F4;border-right: 8px solid transparent”></div> <div style=”background-color: #F4F4F4;flex-grow: 0;height: 12px;width: 16px”></div> <div style=”width: 0;height: 0;border-top: 8px solid #F4F4F4;border-left: 8px solid transparent”></div></div></div> <div style=”flex-direction: column;flex-grow: 1;justify-content: center;margin-bottom: 24px”> <div style=”background-color: #F4F4F4;border-radius: 4px;flex-grow: 0;height: 14px;margin-bottom: 6px;width: 224px”></div> <div style=”background-color: #F4F4F4;border-radius: 4px;flex-grow: 0;height: 14px;width: 144px”></div></div></a><p style=”color:#c9c8cd;font-family:Arial,sans-serif;font-size:14px;line-height:17px;margin-bottom:0;margin-top:8px;overflow:hidden;padding:8px 0 7px;text-align:center”><a href=”https://www.instagram.com/p/CY13ASMPCEA/?utm_source=ig_embed\u0026amp;utm_campaign=loading” style=”color:#c9c8cd;font-family:Arial,sans-serif;font-size:14px;font-style:normal;font-weight:normal;line-height:17px;text-decoration:none” target=”_blank”>A post shared by AFTERPARTY (@afterparty)</a></p></div></blockquote></div>

Afterparty’s 2 classes of NFTs:

Afterparty offers two different versions of NFTs, Utopians and Guardians, which both come with different art and sets of utility.

Utopians come with all-access passes to Afterparty’s Art and Music NFT festival in Vegas for (at least) 5 years. In addition, Utopians come with a free Guardian NFT airdrop and two free Afterparty pass airdrops. As if that’s not enough, Utopian holders receive a priority guestlist for all Afterparty and creator NFT drops, all-access and a +1 to Afterparty’s fall NFT event in LA, access to select events at the Afterparty house in LA, priority access to pop-up events like NFT.NYC, Art Basel, and more.

Guardians come with VIP access to Afterparty’s Fall festival in LA (Halloween weekend 2022), priority access to all future Afterparty festivals in LA, priority for Afterparty’s 3rd generation of NFTs and more. Only 10,000 copies are in existence, so it’s become quite a hot ticket.

In March, Afterparty held their inaugural Art and Music NFT festival in Vegas, with performances/appearances from notable names like The Chainsmokers, The Kid Laroi, Gryffin, Diablo, Charly Jordan, and many more.

<div class =”code”><blockquote class=”instagram-media” data-instgrm-captioned data-instgrm-permalink=”https://www.instagram.com/reel/Cb8UvTjseIB/?utm_source=ig_embed\u0026amp;utm_campaign=loading” data-instgrm-version=”14″ style=”background:#FFF;border:0;border-radius:3px;margin: 1px;max-width:540px;min-width:326px;padding:0;width:99.375%;width:-webkit-calc(100% – 2px);width:calc(100% – 2px)”><div style=”padding:16px”> <a href=”https://www.instagram.com/reel/Cb8UvTjseIB/?utm_source=ig_embed\u0026amp;utm_campaign=loading” style=”background:#FFFFFF;line-height:0;padding:0 0;text-align:center;text-decoration:none;width:100%” target=”_blank”> <div style=”flex-direction: row;align-items: center”> <div style=”background-color: #F4F4F4;border-radius: 50%;flex-grow: 0;height: 40px;margin-right: 14px;width: 40px”></div> <div style=”flex-direction: column;flex-grow: 1;justify-content: center”> <div style=”background-color: #F4F4F4;border-radius: 4px;flex-grow: 0;height: 14px;margin-bottom: 6px;width: 100px”></div> <div style=”background-color: #F4F4F4;border-radius: 4px;flex-grow: 0;height: 14px;width: 60px”></div></div></div><div style=”padding: 19% 0″></div> <div style=”height:50px;margin:0 auto 12px;width:50px”></div><div style=”padding-top: 8px”> <div style=”color:#3897f0;font-family:Arial,sans-serif;font-size:14px;font-style:normal;font-weight:550;line-height:18px”>View this post on Instagram</div></div><div style=”padding: 12.5% 0″></div> <div style=”flex-direction: row;margin-bottom: 14px;align-items: center”><div> <div style=”background-color: #F4F4F4;border-radius: 50%;height: 12.5px;width: 12.5px”></div> <div style=”background-color: #F4F4F4;height: 12.5px;width: 12.5px;flex-grow: 0;margin-right: 14px;margin-left: 2px”></div> <div style=”background-color: #F4F4F4;border-radius: 50%;height: 12.5px;width: 12.5px”></div></div><div style=”margin-left: 8px”> <div style=”background-color: #F4F4F4;border-radius: 50%;flex-grow: 0;height: 20px;width: 20px”></div> <div style=”width: 0;height: 0;border-top: 2px solid transparent;border-left: 6px solid #f4f4f4;border-bottom: 2px solid transparent”></div></div><div style=”margin-left: auto”> <div style=”width: 0px;border-top: 8px solid #F4F4F4;border-right: 8px solid transparent”></div> <div style=”background-color: #F4F4F4;flex-grow: 0;height: 12px;width: 16px”></div> <div style=”width: 0;height: 0;border-top: 8px solid #F4F4F4;border-left: 8px solid transparent”></div></div></div> <div style=”flex-direction: column;flex-grow: 1;justify-content: center;margin-bottom: 24px”> <div style=”background-color: #F4F4F4;border-radius: 4px;flex-grow: 0;height: 14px;margin-bottom: 6px;width: 224px”></div> <div style=”background-color: #F4F4F4;border-radius: 4px;flex-grow: 0;height: 14px;width: 144px”></div></div></a><p style=”color:#c9c8cd;font-family:Arial,sans-serif;font-size:14px;line-height:17px;margin-bottom:0;margin-top:8px;overflow:hidden;padding:8px 0 7px;text-align:center”><a href=”https://www.instagram.com/reel/Cb8UvTjseIB/?utm_source=ig_embed\u0026amp;utm_campaign=loading” style=”color:#c9c8cd;font-family:Arial,sans-serif;font-size:14px;font-style:normal;font-weight:normal;line-height:17px;text-decoration:none” target=”_blank”>A post shared by AFTERPARTY (@afterparty)</a></p></div></blockquote></div>

Other important info:

A large portion of Afterparty’s focus is dedicated to optimizing the connection between creators and fans. Their Creator Pass is currently in development, but is set to serve as a “passport” to the worlds of some of the most influential creators. Afterparty says to expect this function to be rolled out in the near future.

Just as impressive as the intricate world of Afterparty is the four-person team behind it: David Fields (co-founder), Eytan Elbaz (co-founder), Dan Rahmel (co-founder), and Robert Graham (Chief Community Officer). Amongst the four of them, they have amassed experience from Disney, Intuit, Google, and Paradigm Talent Agency, along with eye-catching educational resumes. In short, their team looks like the textbook definition of a Web3 powerhouse.

Whether it’s the savvy operation of their mansion in LA, their two festivals, or the maze of functionality amongst everything in the world of Afterparty, there are countless reasons to learn more and get involved in their community.

After the seamless demonstration of what an Afterparty festival looks like in Vegas, the platform and its community are eagerly anticipating the Halloween weekend event in LA. So are we.

Categories
NFT

Instagram to Integrate NFT Verification

Instagram NFT verification is now on the horizon.

Instagram, the social media giant owned by Meta, will be allowing users to verify ownership of NFTs as soon as Monday. Users will be able to verify their NFT assets that live on blockchains such as Ethereum, Polygon, Solana, and Flow. 

In January 2022, Twitter dropped its NFT verification feature. This was available to users with a Twitter Blue subscription service which cost $2.99 monthly. Instagram plans on rolling out this feature for free as of now.

Another key difference between the Twitter and Instagram NFT verification is the increased accessibility. Twitter only allows for verification of NFTs on the Ethereum blockchain. Instagram is allowing users to verify assets from four different blockchains. 

This move comes as Meta (formerly Facebook) attempts to position itself as a bridge from Web2 to Web3. The company saw its biggest fall in stock price in February. This came after the announcement to change its name from Facebook to Meta.

According to Coindesk, the feature would be open to a select number of NFT collectors based in the U.S. It is rumored that this release will include seven NFT aficionados based in the U.S, including visual-artist Sophia Wilson.

She started her career at the age of 14 after noticing a lack of other Black women in the mainstream media.  As a result, her work aims to diversify the art and commercial worlds by representing happy and calming Black feminine figures.  Sophia has been one of the youngest contributors for Vogue, VICE, Elle, etc., and regularly creates campaigns for brands like Nike and Converse.  Over the years, she has worked extensively with Instagram and is excited to have her photos be the first-ever NFTs on the app.

<div class =”code”><blockquote class=”instagram-media” data-instgrm-captioned data-instgrm-permalink=”https://www.instagram.com/p/CcvReMgu3yB/?utm_source=ig_embed\u0026amp;utm_campaign=loading” data-instgrm-version=”14″ style=”background:#FFF;border:0;border-radius:3px;margin: 1px;max-width:540px;min-width:326px;padding:0;width:99.375%;width:-webkit-calc(100% – 2px);width:calc(100% – 2px)”><div style=”padding:16px”> <a href=”https://www.instagram.com/p/CcvReMgu3yB/?utm_source=ig_embed\u0026amp;utm_campaign=loading” style=”background:#FFFFFF;line-height:0;padding:0 0;text-align:center;text-decoration:none;width:100%” target=”_blank”> <div style=”flex-direction: row;align-items: center”> <div style=”background-color: #F4F4F4;border-radius: 50%;flex-grow: 0;height: 40px;margin-right: 14px;width: 40px”></div> <div style=”flex-direction: column;flex-grow: 1;justify-content: center”> <div style=”background-color: #F4F4F4;border-radius: 4px;flex-grow: 0;height: 14px;margin-bottom: 6px;width: 100px”></div> <div style=”background-color: #F4F4F4;border-radius: 4px;flex-grow: 0;height: 14px;width: 60px”></div></div></div><div style=”padding: 19% 0″></div> <div style=”height:50px;margin:0 auto 12px;width:50px”></div><div style=”padding-top: 8px”> <div style=”color:#3897f0;font-family:Arial,sans-serif;font-size:14px;font-style:normal;font-weight:550;line-height:18px”>View this post on Instagram</div></div><div style=”padding: 12.5% 0″></div> <div style=”flex-direction: row;margin-bottom: 14px;align-items: center”><div> <div style=”background-color: #F4F4F4;border-radius: 50%;height: 12.5px;width: 12.5px”></div> <div style=”background-color: #F4F4F4;height: 12.5px;width: 12.5px;flex-grow: 0;margin-right: 14px;margin-left: 2px”></div> <div style=”background-color: #F4F4F4;border-radius: 50%;height: 12.5px;width: 12.5px”></div></div><div style=”margin-left: 8px”> <div style=”background-color: #F4F4F4;border-radius: 50%;flex-grow: 0;height: 20px;width: 20px”></div> <div style=”width: 0;height: 0;border-top: 2px solid transparent;border-left: 6px solid #f4f4f4;border-bottom: 2px solid transparent”></div></div><div style=”margin-left: auto”> <div style=”width: 0px;border-top: 8px solid #F4F4F4;border-right: 8px solid transparent”></div> <div style=”background-color: #F4F4F4;flex-grow: 0;height: 12px;width: 16px”></div> <div style=”width: 0;height: 0;border-top: 8px solid #F4F4F4;border-left: 8px solid transparent”></div></div></div> <div style=”flex-direction: column;flex-grow: 1;justify-content: center;margin-bottom: 24px”> <div style=”background-color: #F4F4F4;border-radius: 4px;flex-grow: 0;height: 14px;margin-bottom: 6px;width: 224px”></div> <div style=”background-color: #F4F4F4;border-radius: 4px;flex-grow: 0;height: 14px;width: 144px”></div></div></a><p style=”color:#c9c8cd;font-family:Arial,sans-serif;font-size:14px;line-height:17px;margin-bottom:0;margin-top:8px;overflow:hidden;padding:8px 0 7px;text-align:center”><a href=”https://www.instagram.com/p/CcvReMgu3yB/?utm_source=ig_embed\u0026amp;utm_campaign=loading” style=”color:#c9c8cd;font-family:Arial,sans-serif;font-size:14px;font-style:normal;font-weight:normal;line-height:17px;text-decoration:none” target=”_blank”>A post shared by Sophia Wilson (@phiawilson)</a></p></div></blockquote></div>

Meta has been on the cutting edge as a platform since its launch in 2004. From adding features like Facebook Marketplace for users to buy and sell physical goods in 2015, to attempting to create its own currency under the name ‘Libra’ in 2019, Meta has always looked for ways to evolve as a platform. With over 500 million active daily users, adding verifiable NFTs to the platform would make Instagram one of, if not the biggest marketplace for digital goods.

Categories
NFT

STEPN: The Web3 Running App That Pays You to Exercise

Walking, jogging, and running are things we do regularly. But, imagine getting paid to do it? That is exactly what STEPN is aiming to do with its lifestyle app.

STEPN, a web3 lifestyle app with social-fi and game-fi elements, allows players to earn money by walking, jogging, and running to earn game tokens (GST). You can also lease or sell your NFT sneakers on the in-app marketplace.

STEPN promotes daily activity through game-fi elements. It is the first project to effectively create a ‘move2earn’ concept. In fact, STEPN finished 4th out of 500+ projects at the Solana Ignition Hackathon 2021.

Its mission is to inspire millions of people to live a healthier lifestyle, while at the same time connecting people to the world of Web3. Through Nori Marketplace, a portion of profits will be used to buy Carbon Removal Credits to combat climate change.

You don’t have to be a Web3 expert to use STEPN. The gamification aspect and the move2earn core mechanic makes it easy for anyone to embrace a healthier lifestyle and earn a profit while doing so.

STEPN

How does STEPN work?

To use STEPN, you first have to equip yourself with NFT Sneakers. By simply walking, jogging, or running outdoors, you earn game tokens (GST). The GST tokens can be used in-game or cashed out for profit. To get started, follow these simple steps below:

  1. Download the STEPN app.
  2. Sign-up for STEPN. After downloading the app, all you need to sign-up is your email address. You will receive a verification code needed to enter the app.
  3. Create your wallet. To create your wallet, click on the Wallet icon in the top right corner
    of the screen. The app will generate a 12-word secret phrase. This phrase is your key to recovering your wallet if you uninstall the app or forget your password, so keep it safe. (Store your secret phrase in a safe place (not on your device) such as a piece of paper you have access to.)
  4. Transfer SOL into your in-app wallet. To buy your own pair of NFT Sneakers, you need to transfer SOL to your in-app wallet. Also, it’s best to keep some SOL in your wallet to use for gas fees (transaction fees).
  5. Purchase or rent an NFT Sneaker. Visit the in-app marketplace to buy or rent your own NFT Sneaker. You can use the Filter tool to search for your favorite sneaker.

After purchasing your NFT Sneaker, energy will restore at a rate of 25% every 6 hours (Fixed at AEDT Time 00:00, 06:00, 12:00, 18:00) This means you can start your STEPN journey immediately after the first 25% energy restoration.

Moreover, you don’t need to own an NFT Sneaker to participate in move2earn. You can rent Sneakers for free from other users. Your earnings will be split between you and the owner at a 30/70 rate (coming soon).

STEPN

STEPN Game Modes

The STEPN app offers three different game modes that allow you to have fun while earning money: Solo, Marathon, and Background Mode.

Solo Mode: Solo mode allows you to earn tokens simply by moving. The amount you earn is based on two factors; your level of physical activity and the rarity of the NFT Sneakers you own.

Marathon Mode: You can register for weekly and monthly Marathon competitions in Marathon Mode. Just make sure to register for each race 24 hours before starting your marathon.

Background Mode: You can even earn GST while the STEPN app is turned off, using Background Mode. All you need is one pair of Sneakers in your wallet to be eligible for this feature. The app will then pull your step count directly from your device’s Health Data. The best part about Background Mode is that walking, jogging, and running will not reduce the endurance of your sneakers.

STEPN Marketplace

The STEPN marketplace is where you can rent, lease, buy, and sell NFT Sneakers, badges, and Gems. The marketplace offers several features aimed to eliminate the barrier to entry often experienced in the NFT and Web3 space. These features include a rental and credit system.

STEPN Rental System

The rental system allows you to rent NFT Sneakers. To do this you will have to apply for a rental. Once paired with a leaser, you will need to agree to their terms.

A rental contract generally lasts 24 hours. After, the Sneaker is returned to the owner for repair. A Rental Agreement can last up to 7 days if the renter’s credit rating is good. However, failure to fulfill the terms of the Rental Agreement will result in a 1-star deduction from the renter’s rating.

When a renter completes the term in Solo Mode, the smart contract distributes the earnings according to the rental agreement. Both the renter and leaser earnings are fixed. Additionally, the system will reward renters with 0.1 credit per successful Rental Agreement fulfilled.

Ultimately, the rental system allows new users to participate without owning their own NFT Sneaker and enables owners to benefit from being able to lease their sneaker.

STEPN

Credit system

The credit system is set up to help new users understand the fundamentals of the app. Therefore, renters are required to complete a set of ‘scholar’ quizzes to increase their credit rating. These quizzes prevent renters from underutilizing the app, which would likely result in yielding no returns. Only once a user’s rating reaches ⅖, can they begin renting Sneakers.

STEPN utilizes two types of tokens. The governance token (GMT) and their utility token (GST). Both of these tokens play an important role in the STPEN ecosystem. Let’s break them both down to better understand how they are used.

STEPN’s GMT Token
STEPN

The GMT is minted at the Token Generation Event (TGE), with a total supply of 6 billion minted on March 9, 2022. You can view the contract here.

30 percent of the GMT supply will be distributed to users through move&earn Governance participation. The total release of GMT will halve every three years, ensuring the longevity of the STEPN project. You can learn all about the GMT distribution and vesting schedule here.

GMT earning is only available to users once their sneaker reaches level 30. Also, it is mandatory to have at least three Energy in order to start earning GMT.

Each day, a set number of GMT is unlocked to earn. The daily release of GMT follows an exponential decay pattern. That means that on the first day of the 3rd year, the daily GMT unlocked is exactly halved compared to the 1st day of GMT available to earn.

Earning can be unpredictable because the system automatically adds randomness to users’ GMT earnings. The settlement of GMT will be done in several mints to avoid any extrapolation of earnings. Moreover, the more users earning GMT at a given time, the less GMT earning will be available per person, and vice versa.

STEPN’s GST Token
STEPN

The GST has an unlimited supply and is earned when a user moves in Solo or Background Mode. To provide liquidity, 60 million GST was created. The current price of GST sits at $6.15 with a circulating supply of 3,597,242.47 tokens.

GST is burned (destroyed) by participating in a number of events, including:

  • Shoe minting
  • Repair
  • Leveling up Sneakers
  • Gems upgrade
  • Unlocking socket

Overall, STEPN is a Web3 lifestyle app featuring aspects of social-Fi and game-Fi. Users with NFT Sneakers may walk, jog, or run outside to earn GST, which can be used to level up and mint new Sneakers. Users can lease or sell their NFT Sneakers on the in-app Marketplace, and their GST earnings are saved in the in-app Wallet. 

To learn more about STEPN, you can view its whitepaper here or download the STEPN app.

Categories
NFT Tech

What is IPFS?

The web as we know it today is controlled by centralized servers and accessed by location-based addressing. With that comes potential issues in the chance that a server is hacked, or if it happens to crash. This would leave the user that is requesting the data with nothing but an error page. That’s where IPFS can be of assistance.

What is IPFS?
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An Interplanetary File System (IPFS) is a peer-to-peer file-sharing system created by Protocol Labs. IPFS is used for storing and accessing files, websites, applications, and data. IPFS uses content-addressing to identify each file in a global namespace connecting all computing devices.

IPFS allows users to host and receive content in a decentralized manner via peer-to-peer file sharing. This means that user-operators hold a portion of the overall data which creates a strong system of file storage and sharing.

Any user in the network can serve a file simply by its content address, and other users in the network can locate and request that content from any person who has it using a distributed hash table (DHT).

So, rather than being location-based, IPFS addresses a file by its content. To identify certain content, IPFS uses a cryptographic hash of the content at that address, and the hash is unique to the content it came from. In reality, IPFS aims to create a single global network. 

For example, if Alex and Nick publish a block of data with the same hash, the users downloading the content from Alex would exchange data with the ones downloading it from Nick.

How does IPFS work?
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Normally, when you put a URL into your browser, your computer asks another computer for that specific page you are requesting. However, that’s not the only way you can retrieve that page, rather, if there is a mirror of that page stored on IPFS you could use that.

Instead of asking a single computer for a page, your computer uses IPFS to ask several computers around the world to share the page with you. That means you can get the page you’re requesting from anyone around the world who also uses that page on IPFS, not just a single computer.

Keep in mind that when you use IPFS, you aren’t just downloading files from someone else, your computer also helps distribute them. This is true for any kind of file a computer might store, whether it be a web page, document, email, or database record.

Overall, there are four main components to IPFS, lets take a look at each one.

Distributed hash table (DHT)

A data hash table (DHT) is a data structure that implements a structure that can map keys to values. A DHT uses a hash function to compute an index—aka hash code—into numerous slots, from which the desired value can be located. This means data is spread across a network of computers and coordinated to enable efficient access and lookup between nodes.

The advantage of DHTs includes decentralization, fault tolerance, and scalability. DHTs can scale to accommodate a ton of nodes, and even if a node fails or leaves the network, the system will still function properly.

Block Exchanges

BitTorrent, a popular file-sharing system, is able to coordinate the transfer of data between countless nodes by relying on a data exchange protocol, but, it is limited to the torrent ecosystem.

That’s why IPFS implemented a more general version of this protocol called BitSwap, which operates as a marketplace for any kind of data.

Merkle DAG

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Merkle DAG is a combination of Merkle Tree and a Directed Acyclic Graph (DAG). The Merkle Tree is responsible for ensuring that data blocks exchanged on p2p networks are correct, and not altered in any way.

The verification is done by organizing data blocks using cryptographic hash functions, which is a function that takes an input and calculates a unique alphanumeric hash that corresponds with that input. Ensuring that an input will result in a given hash is simple, but it’s very difficult to guess the input from a hash.

A DAG is a method of modeling topological information sequences with no cycles. A family tree is a basic representation of a DAG. A merkle DAG is essentially a data structure in which hashes are used to refer to data blocks and objects. The main principle of IPFS is modeling all data on a generalized merkle DAG.

Self-Certifying File System

A self-certifying file system (SFS) is a distributed file system that doesn’t need special permissions to exchange data. The data served to a user is simply authenticated by the file name, which is signed by the server. Meaning, you can securely access remote content with transparency of local storage.

The decentralization of IPFS
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When it comes to decentralization and IPFS specifically, there is one main goal: make it possible to download one file from many locations that aren’t managed by one organization. Of course, this comes with many benefits including:

  • Supports a strong internet. If someone decides to attack a specific web server you are using, or the server happens to crash, you can still retrieve those same web pages from others.
  • Increases the difficulty to censor content. Since files on IPFS can come from numerous locations, it’s harder for anyone to censor content.
  • May potentially speed up your request if you are far away from the server that is sending you the request. If you are able to retrieve your request from someone nearby opposed to someone who is further away, you can retrieve your request quicker.

I know. There are a lot of complex terms and technology when discussing IPFS, but the main point is that IPFS aims to change how networks of people and computers communicate. Web 2.0 is structured on ownership and access, meaning whoever owns the file is the same person that serves you the file.

With IPFS, however, the structure is based on possession and participation, meaning multiple people possess each others’ files, and by participating in consuming the file, you are also distributing the file.

Best practices for storing NFT data using IPFS
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When it comes to storing an NFT’s metadata, the data is only as good as the server storing the data. That means if the server were to crash, you would lose all the associated metadata to your NFT.

What is NFT metadata? NFT metadata is the content and description of the content described in the contract that is stored on the blockchain.

Considering it is difficult to change an NFT’s metadata and where it’s stored, it’s a good idea to think about how the data for your NFT is stored.

IPFS allows users to store and retrieve content based on a CID (cryptographic hash). You can put IPFS CID into an NFT so that it references the data itself rather than a traditional HTTP link, which is likely to fail over time. This means as long as one copy of the CID exists on the IPFS network, it can be accessed.

The main reason to store your NFT’s metadata on IPFS isn’t to provide it with permanent storage, rather, it helps prevent the link rot that commonly occurs with HTTP links. However, it doesn’t completely solve where off-chain data is stored.

If you are considering storing or minting your NFT’s metadata on IPFS, some good options are NFT.Storage and Pinata.

To learn more about best practices for storing your NFT’s data using IPFS, go to docs.ipfs.io.

What can you do with IPFS?

With IPFS, you have the ability to do many things, such as:

  • Desktop applications 
  • Share your files or sell copies of it
  • Dead drop
  • Collaborate on written documents
  • Version control
  • Connect event attendants
  • Exchange messages
  • Store assets

Althought this list is rather broad, you can learn the specific details by visiting docs.ipfs.io.

Ultimately, if IPFS is successful, it will provide a strong foundation for the future of the internet. The aim for the future of the web is to be transparent, secure, and distributed so that it’s not under the control of one main entity, and IPFS can help achieve this goal.

Portions of this page are reproduced from work created and shared by Protocol Labs and used according to terms described in the Creative Commons 3.0 Attribution License.

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NFT Tech

What is Mainnet and Why Should you Know About it?

The Web3 space is full of technical terms that appear to come straight out of a sci-fi movie, but that’s because there is so much innovation happening in the space and new platforms that require completely new infrastructures.

One of these terms is mainnet. If you know about Bitcoin or Ethereum, then you have likely heard the term mainnet tossed around a few times. 

Below is a beginner’s guide to what a mainnet is, and the process required to develop a proper mainnet.

What is mainnet?
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Mainnet is best described as a blockchain that has been fully tested, developed, deployed, and is running its own network with its own technology and protocol. This means that all transactions are actively being broadcasted, verified, and recorded on a digital public ledger (blockchain).

The tokens on a mainnet have monetary value, whereas the tokens on a testnet do not.

Initial coin offering (ICO)
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Before the mainnet is fully deployed, the team will set up an initial coin offering (ICO) along with anything else that might help raise funds and further grow their community.

An initial coin offering is the Web3 industry’s equivalent to an initial public offering (IPO). Essentially, an ICO is used by developers to raise money to create a new token, DApp, or an entirely new mainnet.

When developers of a mainnet are looking to raise money through an ICO, the first step is to determine how the ICO will be structured. There are several ways you can structure an ICO, including:

  • Dynamic supply and static price: The amount of funding received determines the supply.
  • Static supply and dynamic price: The amount of funds received in the ICO determines the overall price per token.
  • Static supply and static price: The company sets a specific funding goal, meaning each token sold in the ICO has a set price and a fixed supply.

Unlike ICO, an Initial Exchange Offering (IEO) is conducted solely on crypto exchanges like Coinbase and enables project developers to reach users of cryptocurrency exchanges.

So, the main difference when comparing an ICO to an IEO is that the project developers handle the sales of their tokens themselves rather than using a cryptocurrency exchange to gain exposure.

The funds from an ICO are then used to develop prototypes of the mainnet blockchain network known as a testnet. Without the ICO phase, it would be very difficult for developers to get the funding needed to further develop and test the mainnet.

Testnet phase
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The testnet is a parallel blockchain or network to the mainnet, and is not fully developed or running to its full capacity. Generally, a testnet is used by developers to test and troubleshoot all the features of a blockchain to ensure the system is secure and ready for the full launch of the mainnet.

Once any bugs or other issues are fixed and the performance is optimized, the mainnet version of the blockchain is finally launched. The testnet phase is extremely important because it acts as the test before the real deal.

Imagine if you were to send thousands of dollars worth of crypto before ever testing if the blockchain functioned properly, and you end up losing all your money. Obviously, developers want to avoid that from ever happening, hence why the testnet phase acts as a safeguard to prevent that. Essentially, all transactions are in demo mode during the testnet phase.

Additionally, addresses on the mainnet have different prefixes compared to addresses on the testnet.

Mainnet addresses generally begin with 1, 3, or bc1, while testnet addresses begin with 2, m, n, or tb1.

For example, you can find a list of prefixes that are used in reference to the Bitcoin blockchain on Wikipedia.

Also, tokens on the mainnet can’t be sent to the testnet, and vice versa. If you tried, the tokens would essentially be destroyed and unrecoverable.

How important is the mainnet?

Mainnet is important because the launch of a mainnet increases the value of an asset simply because it means that the team has executed the terms in their whitepaper accordingly. However, a mainnet launch is just the beginning, to continue driving value to a mainnet, continuous upgrades are vital. 

Ultimately, a mainnet is the final form of a blockchain or network. However, before deploying a mainnet, it is crucial to ensure you have covered the steps leading up to the full release of a mainnet, otherwise, the entire network could be compromised.

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NFT Tech

Airdrop Beginner’s Guide: What’s an Airdrop and How Does it Work?

If you are at all active in the NFT or web3 space, then you’ve likely heard of people receiving airdrops. One of the most well-known airdrops is the OpenDAO’s $SOS token drop that was dropped to everyone who has interacted with Opensea, on December 13th, 2021.

Airdrops can take a myriad of different forms, but what exactly is an airdrop?

What is an airdrop?

An airdrop is a distribution of cryptocurrency, tokens, or NFTs that are sent to a web3 wallet address for free as a promotion, or as added value for participating in an experience or purchasing a digital asset. Airdrops are generally used to add additional value or to draw attention to a brand or experience.

Airdrops are most commonly implemented as a promotional strategy that is used to draw attention to an NFT project or other blockchain-based community such as a DAO, or a newly created cryptocurrency.

Keep in mind that there are numerous types of airdrops when it comes to web3. Let’s go over the different types of airdrops that are commonly seen in the web3 space today.

1. Standard airdrop

A standard airdrop is when a certain amount of cryptocurrency is sent to you in return for completing a simple task such as sharing a social media post, joining a whitelist, or providing your email address to sign up for a newsletter or other email services.

Standard airdrops do not require you to spend anything in order to receive the airdrop, it is simply a task that you complete and in return, you’re rewarded with the airdrop. The cryptocurrency is usually a newer and unknown currency and may not be as valuable as some of the well-known cryptocurrencies like Bitcoin and Ethereum.

Think of a standard airdrop similarly to a real-life coupon. For example, say a new restaurant opens up in your town and for the first week they offer free appetizers if you choose to try out the restaurant. The restaurant is providing their customers with added value in the form of a free appetizer, while at the same time they’re drawing in more attention and customers. It’s a win-win!

2. Exclusive airdrop

Exclusive airdrops are distributed to loyal holders or users of a cryptocurrency or blockchain-based community. An exclusive airdrop is essentially a reward for being a loyal user and is generally dispersed with no strings attached other than being loyal.

I compare exclusive airdrops to being a member at a grocery store and receiving gas rewards for shopping at the store. You are rewarded for your continued support, and the grocery store gains a loyal customer and provides additional value through the gas rewards.

3. NFT airdrop

An NFT airdrop can be initiated for several reasons. You may receive an NFT airdrop for holding a certain NFT in your wallet, promoting a brand in some way, participating in a giveaway, or even as a gift which is more a marketing strategy rather than a gift.

Just to be fair, NFT airdrops can be extremely valuable. A good example of a valuable NFT airdrop is the Bored Ape Mutant Serum. Holders of Bored Ape Yacht Club NFTs were airdropped variations of what’s known as the Mutant Serum NFT. 

Although these Mutant Serums were airdropped for free to holders, it didn’t take long for them to begin selling for over 3 ETH (thousands of dollars) on secondary NFT marketplaces. In fact, on January 2, 2022, a Mega Mutant Serum sold for 1,542.069 ETH ($5,907,542.97).

That being said, not all NFT airdrops are valuable. Some may be completely worthless, and some may even be scams. If you ever receive a random NFT in your wallet without your knowledge from an unknown source, you should be extremely cautious in how you handle the asset and try to avoid selling it or trading it in any way.

4. Hardfork airdrop

A hardfork airdrop occurs when there is a permanent split or new version of a blockchain that is released, hence creating the need for a new token to go with it.

Generally, the old version of the previous blockchain will still exist along with your old tokens, but the new tokens will also be airdropped to you in an equal amount to what you currently hold in the old token.

How to get an airdrop

To receive an airdrop, you generally have to hold a minimum quantity of a certain asset such as an NFT or have used a particular service that qualifies you to receive an airdrop such as transacting on a marketplace. Furthermore, you will need a web3 wallet to receive your airdropped asset.

Although, airdrops can also be received for completing a simple task for someone or a brand. Such tasks could be something as simple as sharing a social media post, creating a piece of content, or assisting in spreading awareness.

Why are airdrops important?

Airdrops are an important part of the web3 community because they act as a promotional tool for brands, allow for brands to continue to provide additional value and utility to their holders, and enable blockchains to start new without sacrificing the trust and relationship of their users.

Ultimately, airdrops allow individuals and brands to foster new relationships, strengthen current ones, and highlight their products and services in an easy and inexpensive way compared to traditional marketing methods.

Are airdrops safe?

In general, airdrops are considered to be a safe and effective way to market your brand and build community. However, that’s not to say that airdrops don’t come with some risks. There’s an extreme amount of scams in the web3 space, and any airdrop should be approached with caution and thoughtfulness every step of the way.

Many airdrop scams consist of an offering that may be hard to resist. These scams will ask you to enter your secret phrase or sign for the transaction using your web3 wallet in order to receive your airdrop, which can lead to your wallet being compromised along with everything inside of it.

If you are ever offered an airdrop, it is crucial that you do your own research and verify that the airdrop is authentic and not a scam. Here are some common signs that an airdrop may be a scam:

  • Requesting that you pay a small amount to receive your airdrop
  • Requesting any private information such as secret phrases and passwords
  • Offering to help you via sharing your screen
  • A new or lookalike NFT or crypto airdrop that’s unverified
  • Links that direct you to a phishing site that makes you sign using your wallet
  • If it’s too good to be true, then it’s likely a scam

If you find yourself in a position where you are questioning the legitimacy of an airdrop, then make sure to take your time to do the proper research and use resources such as Twitter to ask the community about the authenticity of the airdrop.

If an airdrop is legit, then it’s highly likely that you’re not the only one who knows about it, so asking the community is one of the best things you can do.

Final thoughts

Airdrops have many benefits when it comes to the web3 space such as marketing, building a community, and providing additional value and support to loyal users and holders of digital assets. However, not all airdrops are great or beneficial, and some may even be harmful if you don’t do your due diligence and research the airdrop.

Overall, airdrops can be an excellent way to earn some additional income, utility, and assets without having to do much in return. But beware, if it’s too good to be true, then it probably is.

Categories
NFT Tech

What is Zero-Knowledge Proof and Why is it Important to Web3?

Before we get into what Zero-Knowledge Proof is, let’s make sure that we understand the meaning of proof. Proof is the basis of mathematics and how we know that something is absolutely true.

For example, we know that every sum of a triangle’s angles is 180 degrees and we can prove it, therefore we know that to be true for every triangle.

Proofs are what allow us to be certain about mathematical facts. If someone wants to verify that a triangle’s angles add up to 180 degrees, then they can follow the correct steps of the formula which will result in the correct answer, aka the truth.

This person would be known as a verifier, and the person who originally created or holds the formula to solve the equation would be known as the prover.

What is Zero-Knowledge Proof?

Zero-knowledge proof is a process through which the prover may show to the verifier that a particular claim is true without providing any extra information other than the fact that the statement is true.

The idea of zero-knowledge proof is that it’s straightforward to demonstrate knowledge of some information simply by exposing it; the obstacle is to prove such knowledge without disclosing any extra information.

Since proving a statement demands that the prover holds some secret knowledge, the verifier will be unable to prove the statement to anyone else unless the prover possesses the hidden information.

The claim that the prover knows such information must be included in the statement being proven, but the information itself doesn’t need to be included or communicated in the claim.

Immersive zero-knowledge proofs need interaction between the person (or system) proving their knowledge and the person confirming the proof.

A protocol that implements zero-knowledge proofs must call for direct input from the verifier. This interactive input is often in the form of one or more tasks, with the prover’s replies convincing the verifier only if and when the assertion is true.

Why is Zero-Knowledge Proof so important?

Zero-knowledge proof is important because it allows the prover to relay the truth of a specific piece of information to the verifier without disclosing any more information than necessary. 

The greatest concern in transacting on the blockchain is the multiple flaws that may be found in traditional approaches. When zero-knowledge proof is combined with private blockchain transactions, they become resistant to hacking or interception.

Here are three main reasons why zero-knowledge proof is so important:

  1. Validity: If a statement is true then the verifier can confirm the prover possesses the required information.
  2. Trust: The statement cannot be fake, and the verifier cannot be convinced the prover has the required information when they really don’t.
  3. Zero-knowledge: The verifier will have no knowledge of anything other than whether the claim is true or false. The information and personal data of the other parties are kept private.

Overall, zero-knowledge proof ensures that both parties in a transaction remain safe and trustworthy, otherwise the transaction can’t be completed.

Example of Zero-Knowledge Proof on the blockchain

As you can see, zero-knowledge proof is very beneficial to keeping privacy a priority, while still maintaining the trust and transparency that the blockchain is known for. So what is an example of zero-knowledge proof being implemented on the blockchain?

Zcash is one example of zero-knowledge proof used on the blockchain. Zcash is a cryptocurrency that leverages zero-knowledge proof. Zcash developers created their own technology known as zk-SNARKs, which allows users to choose privacy when trading with the cryptocurrency.

What is zk-SNARK?

zk-SNARK is an abbreviation for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge, and it refers to a proof development in which one can prove ownership of certain information, such as a secret key, without revealing the key or requiring any interaction between the prover and verifier. 

These proofs are not only safe, but they are also extremely quick with a verification time of only a few milliseconds. 

Personal privacy has been a major element of the blockchain and cryptocurrency revolutions, and zero-knowledge proof combined with zk-SNARK technology is prepared to continue on this quest for trust and efficiency on the blockchain.

Categories
NFT Tech

Monetization in Web3

Monetization has always been a top priority for creators.

After they discovered from ’00 to ’10 that they could monetize their audience through web2 platforms and that it was possible to earn a living from their passion, creators then realized from ’10 to ’20 they could actually BE the brand, BE the product, and could do for them what they were doing for others.

Indeed, the emergence of new technologies cumulated to a paradigm shift in how GenZ sees their work, leading us to a new era for creators.

Crypto, and tokens specifically, seem to be the path to help these creators achieve financial freedom and live from their passion, creating content online. Even major creator-focused web2 companies already understood.

Tokens can revolutionize how creators make money online. Patreon is already looking into crypto tokens as another way for creators to monetize communities.

So how and why will tokens replace the old ads/brand sponsorship monetization framework, through ownership and direct value creation? Furthermore, how will creators leverage this technology and monetize their audience compared to the traditional way?

That’s what we’re going to find out in this article. Let’s get into it.

1. The current monetization model in web2

The Creator Economy results from a complete paradigm shift in the way more people, and GenZs specifically, are seeing the work. It’s indeed more and more common to post on the internet, share photos, join forums, curate articles and make money out of it. The internet levels the playing field, and anyone can use their hustle and savvy to amass a following and monetize that following.

However, there are still two major problems for creators today: Ownership and Monetization.

Creators don’t have ownership because of the ad-driven business model most web2 social platforms—where creators build their audience—are using.

In fact, in web2, the process of monetization for a platform usually goes something like this:

  1. Company launches an app
  2. It onboards as many users as possible
  3. Then it monetizes its user base

This outdated business model forces current social networks to keep a walled garden around their content. Opening their data would mean killing their business model. Their main way to monetize is to sell this data to for-profit companies to target specific audiences.

This business model gives users and creators no choice but to continue using these apps as they have already created an audience on these platforms.

On top of that, this business model creates a situation where creators who actually produce the content are underpaid, under-monetized, and don’t fully capture the value they are making.

With this broken ads-driven business model, creators don’t have much choice but to rent the audience they don’t really own to brands keen to pay a lot of money to access it.

As you can imagine, this model is unsustainable for creators, and we need to give them back Ownership over their content and ways to monetize it more efficiently.

2. The first era of monetization in web3

There’s a famous essay written by Kevin Kelly called “1,000 True Fans,” predicting that the internet would allow more people to make a living off their creations.

Rather than pursuing widespread celebrity, he argued, creators only needed to engage a modest base of “true fans”—those who will “buy anything you produce”—to the tune of $100 per fan per year (for a total annual income of $100,000). Li Jin later argued creators would eventually need only 100 true fans to make a living off their passion.

I believe Li Jin is right. New crypto technologies allow creators to monetize their content more efficiently. In recent months, and with creators becoming increasingly aware of web3’s capabilities, we saw more of them experimenting with innovative monetization models and earning life-changing money.

While there are many ways for creators to leverage the crypto technology, it seems there are two main ways for them to monetize more efficiently their content:

  • Creating a Token that gives access to premium content – Fans (or community members) can buy a token and get access to content in advance, access token-gated content such as private channels in a Discord or the “Close Friends” on Instagram. The Token allows to limit access at scale and provide recognition and status for the biggest fans within the community.
  • Allowing fans to invest in the Creator through a Token – With the creator becoming more famous, more people want to buy the Token to get access to exclusive content, and the token increases in value. Fans can redeem coins, treating them as an investment, and creators can eventually use the liquidity to buy new materials, create better quality content and augment its distribution. In this case, the Token serves as a way to crowdfund the creator.

Mainstream creators are today mostly using Non-fungible tokens (aka NFTs) to monetize their content as they are allowing many new use-cases. NFTs also come with status, scarcity, and belonging within the community.

With these new tokens that creators can now effortlessly create comes the concept of ownership for fans and creators.

As Jesse Walden says in his essay The Ownership Economy: Crypto & The Next Frontier of Consumer Software: “Rather than a platform’s inner circle of founders and investors taking home the value, users can earn the majority of value generated from their collective contributions.” 

It allows creators to monetize their content while involving their community and aligning incentives.

Fans can purchase tokens that allow creators to not rely exclusively on the revenue generated by web2 platforms (Youtube ads for example), and creators, through the token, give ownership to fans by sharing with them the upsides of their content.

That’s the magic of ownership. When creators give real ownership to their community, members start to take care of it, and engagement often follows. Aligning incentives is everything.

By creating a token and leveraging web3 tools, creators can more easily foster a sustainable community (less spam), ensure members have skin in the game (not only passive members or commenters), and incentivize community members to make the overall community desirable to join over the long-term (the more desirable the community, the more value the token will gain).

Putting these new technologies in the hands of creators is a great step forward over ownership. While in web2, creators needed engagement to attract ad revenue, in web3, monetization and engagement happen at the same time.

Users engage in web3 with their capital by buying an NFT—for example. Since day one, it allows creators to earn revenue, allowing them to monetize their content more easily even without a large audience and to bring their audience out of web2 platforms.

By purchasing a creator’s token, fans further commit to their favorite creators and build a positive feedback loop that nurtures healthy fan communities built around a shared passion. In the end, tokens provide a way for super fans to show their loyalty and provide initial liquidity for creators.

While mainstream creators minting NFTs for their community is insanely exciting, I feel like creators can go even further and completely reinvent how they see monetization. Instead of adapting old models to fit the web3 space, creators could try completely new monetization models that web3 allows.

By leveraging fungible tokens (aka Social tokens or Community tokens) and reinventing what it means to be a Creator, I think there is a possible future where anyone could live from their passion, owning 100% of their content and making what they love.

3. The second era of monetization in web3

While, until now, the term “Creator” (or before that “influencers”) was mostly tied to people creating content online, it seems like web3 is allowing a whole new class of Creators to emerge.

These new creators are people who share their vision through content online rather than creating content as an end goal. The definition of a web3 creator could be:

Anyone pushing ideas, and a vision, through content on the internet and leveraging the new web3 tools at their disposal.”

This broader definition includes more people under the term “creator” and reflects more on these individuals’ actions. These “Creators 2.0” might be the one that benefits the most from the web3 revolution.

A great example of a Creator 2.0 is Jeff Kauffman Jr. Jeff, who might not be considered as a creator in a traditional sense, has created a thriving community around advertising and marketing in web3.

He’s pushing his ideas and vision through essays and podcasts, gathering a strong community keen to help him achieve his high ambition goals. Creating content is not its end goal. Its end goal is to share its vision and gather a community around it.

These Creators 2.0 are not trying to move their already existing audience into web3 to monetize it better. They are creating new communities using web3 tools and leveraging their previous following. And there’s a huge difference between an audience and a community.

In 2021, we’ve already seen many thriving communities led by Creators 2.0. For example, I can think of Carlos Gomes, who has created Forefront, a community that recently raised $2.1M to Build the “Port of Entry” to web3 Social Clubs & Digital Cities.

Another great example is Friends With Benefits, led by the Creator Trevor McFedries, which recently finalized its $10M fundraising round at a $100M valuation led by Andreessen Horowitz. 

These creators are not monetizing their audience in a web2 way. They are building tokenized communities to create projects that bring real value and then monetizing the project.

To do so, they are leveraging web3 tools such as Coinvise, a platform that allows them to create and manage their Tokens by providing features such as Airdrops, Quests or Vesting Schedule.

Today, to build a startup, someone needs money in order to hire people and support themselves. They usually raise this money from VC firms and give away a percentage of the company. This investment introduces misaligned incentives, and even if the company succeeds, it will take a long time for anyone involved to realize any real return on investment. 

On a contrary, with Social tokens, these Creators 2.0 can build solid projects and incentivize their audience to participate in investing money or time in it from day one, avoiding raising money from investors.

With Social Tokens as equities, fans will put in some work and get rewarded with Tokens, letting them redeem perks in the project’s virtual economy or by selling them for USD later if the project succeeds.

Even if the project needs to raise proper money, it can do it through the community. Stakeholders can then use their tokens to vote on future strategic decisions, and the people who helped build the project can sell some of their holdings to make money after the tokens have been released.

People who believe in the project can buy and hold Ownership, and people who think the project is headed in the wrong direction can signal this by selling their stakes. Anyway, purchasers have complete transparency over what is happening as everything is on-chain.

In web3, community members own a part of the Creator’s content and success through tokens. As they benefit directly from the growth of the Creator, they are incentivized to provide help.

Social Tokens, in the end, allow us to align interests, develop a workforce from day one, facilitate collaboration with community members, and monetize more efficiently.

4. The problems we still have to overcome

No solution is perfect, and there are still a lot of improvements that can be made to improve monetization in web3 through Tokens.

When monetizing through tokens, creators have to make their content appealing to fans, not brands. They have to produce much better quality content to delight the fans, as they are the ones spending the money. 

Monetizing via attention, which is what creators in web2 are doing, means producing a lot of lower-quality content, prioritizing quantity over quality (more videos > more ads > more revenue).

On the other end, monetizing from superfans is a much higher barrier to entry to start earning as creators always have to be innovative and create better quality content. Marketing for money, not attention, completely changes how creators are producing content. 

The second problem is the discoverability dilemma. Do creators want to be discovered by a larger audience and share their content for free, or do they prefer to token-gate their content, driving revenue but losing invisibility?

Web2 platforms, which have a large user-base and control discoverability, will always be the place for casual creators (the mass majority) who are simply looking to monetize the attention they generate.

To make the tokens a long-term viable way to monetize content, we have to introduce a new way to drive attention for creators without relying on centralized platforms.

Building decentralized social networks might be a solution to explore. Incentivizing the biggest fans to share the content by rewarding them with Token could be another way to tackle the discoverability dilemma, while it doesn’t have the scale of millions of users’ platforms for now.

Lastly, how do Creators get liquidity from their Tokens? Currently, there is nothing in place for them to “take salary” without selling their coin, which seems not aligned with long-term community interests.

Likewise for contributors, which have to trash the coin to get their salary when contributing to the community, lose voting power in the process.

To improve monetization through tokens, we need to implement new tools or mechanisms to help the creators and community members’ get paid without selling their coins.

One potential solution could be to create two tokens, one for paying salaries and rewarding community members, the other for governance power and perks within the community.

Conclusion

Through this essay, we saw that web3 could help Creators 1.0 and Creators 2.0 monetize their content more efficiently. While there is no perfect solution yet, more and more creators are leveraging crypto mechanisms and are building thriving communities.

To allow the next million creators to live from their passion, we’ll have to think together about creating efficient monetization models. Building web3 tools seem to be the more promising path for now.