BitFans

Decentralizing Creator Communities

Deficiencies and exploitability have paved the way for the proliferation of decentralised systems. DeFi for example claims to enable peer-to-peer transacting without the need for an intermediary or central service exercising control over the entire system, which makes it cheaper and more effective for the end users. Because of this, interest rates are much more attractive in lending applications. It gives users the ability to provide collateral with other crypto-based assets. The logic behind this is that all of these transactions are governed by a piece of code known as a ‘smart contract’, which is automatically executed or adjusted based on the parameters that have been set by the protocol. There are also more complex applications, such as enabling individuals to become liquidity providers to decentralized exchanges through staking.

NFT’s have also been the talk of the town, giving individuals the ability to create digital assets whose value is derived from a number of factors such as demand, scarcity and utility. Most notably, celebrities and artists like Paris Hilton, Lindsay Lohan, and Snoop Dogg have raised millions of dollars by conducting private auctions for their digital collectibles. Beeple sold an NFT for $69 million in March of 2021. Other applications include play-to-earn based models in the form of games such as Axies Infinity, Cryptoblades, DeFi Pets, Plants vs Undead, and so on. These platforms have taken center stage as of late, bringing in new users to the fold each day.

Beyond NFTs and DeFi, perhaps the most interesting application to drive mass adoption and unprecedented growth lies in the concept of Social Tokens. Think of it as DeFi’s friendlier counterpart that’s much easier to understand and get into. While both are functional, DeFi takes on a more serious tone and deals with its own sets of pros and cons in taking on the financial system. Social Tokens on the other hand take on a more inclusive and less complicated narrative, which means that it has a lot more appeal to a broader range of people.

Social tokens serve as a utility for digital economies built by influencers, brands, businesses and organizations, with varying applications depending on how they’re designed. It’s perfect for mainstream adoption, as the majority of today’s consumers are geared towards discovering tools for play rather than tools for work.

BitFans breathes new life into the Creator Economy through its simple-to-use technology that enables anyone with access to an audience to tokenize their influence. Its value is derived not only from one’s reputation and potential for growth, but that of how their community uses it. In our case, we call them Creator Tokens or Community Tokens (we use the terms interchangeably).

By empowering creators and their communities with a channel for direct engagement, this puts control and ownership in their hands. Contrary to the one-way setup we have today, this allows the industry to flourish through sustainable, community-driven growth.

We believe that decentralizing creator communities is the way forward for a number of reasons:

  1. Platforms have too much control. Just like DeFi, content publishing platforms have grown to become multi-billion dollar conglomerates thanks to the real estate that they provide to advertisers. The ability to monetize audiences is exclusive to these large service providers, which means that they can just as easily strip that privilege from their users as they please. A single change in their policy or social algorithms could be detrimental to the growth of various creators on their platform.
  2. Income is difficult to predict. Because creators are essentially playing the platform’s game, it means that they have to continuously adjust their content to any changes made in the algorithm or risk being demonetized. Inconsistency would therefore lead to more unpredictability in terms of income because users will churn out if the creator’s content no longer resonates with them.
  3. Audiences can’t establish relationships. Most of the time, being on a single platform isn’t quite enough to drive up engagements, which is why you will typically see an individual setup 4–5 different channels to establish their brand. Because there are so many platforms that they’re dealing with, it’s difficult for fans to build intimate connections with content creators, leaving a massive gap in communication and alignment.
  4. Existing financial models have limited the creator economy to either recurring or one-time payments. This is because platforms have anchored their tooling around centralized systems like bank accounts and payment gateway providers. Even commission and royalty-based models are inconsistent and quite exploitative for creators.

Taking these factors into consideration, we built the means intended to bridge the gaps that will allow the creator economy to move in the right direction. The biggest advantage of Creator Tokens is that they aren’t tied to a single project, but rather to the long term success of an individual or group. Tokenization allows them to create virtual, fractionalized representation of their potential which community members could hedge on by supporting their digital economy and participating in their initiatives.

While the concept of giving out exclusive rewards or membership into subscription-based services isn’t new, BitFans is completely dependent on communities to drive the growth of its users. Our tokens come with a governance function, which means that fans could potentially have a say in the future direction of the creator, vote for appropriate sponsorships, and various initiatives.

Effectively, community tokens are a tool for growth within an ecosystem of a creator. The more usable they are, the more value they generate. Proportional to this is that the bigger a creator becomes and the wider their reach, the more valuable their tokens can be in the future. With more access to resources, creators can expand into uncharted territories, unlock new value, and create opportunities for growth within their ecosystem.

Moreover, in today’s setup, sponsors are the ones competing to work with individuals that have mastery over their niche or market. Imagine creators utilizing tokens as a way for potential collaborators to access that audience. This is but one of the more exciting applications that provide liquidity and usability within an ecosystem.

Decentralized communities also provide the distinct advantage of equivalent exchange of value. Instead of one-way transactions like selling exclusive content and merchandise with the intermediary platforms getting a chunk of the commission, community members could hold on to these tokens and be rewarded for their tenure through perks, access to private channels, ranks, and more.

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An evolutionary new platform that allows anyone who has access to a community or audience to tokenize their fan base and in turn create a whole new economy