A Guide to SocialFI Part 2: Creator Coins on Deso
Creator Coins
One of the more exciting aspects of the Diamondapp on Deso is the creator coins.
Essentially, you can now invest in a person, or better yet, a person’s popularity.
Let’s say you find someone you think has a lot of talent and is still in its starting days. If you see this creator’s potential, you can buy some of their creator coins.
And it’s not only about speculating if other people will buy these coins after you. Your coins can represent a stake in the creators’ income. For example: If a digital artist creates nfts it’s possible to set a percentage of the revenue to be shared with their coin holders.
Another option is to give exclusive content to coinholders, or even 1-1 meetings for coinholders with at least x amount of coins.
Going further, I reckon people may figure out ways where investing in their coins can result in the creator sharing x amount of her overall income, even on platforms other than Deso.
Although it’s not here yet, there will undoubtedly be new ways discovered and implemented to create value for your holders.
And that’s not all. It’s also possible to get funding for a (business) idea using the Deso’s DAO platform, quircky enough called DaoDao.
“Essentially, you can now invest in a person, or better yet, a person’s popularity.”
It’s just a matter of time that these two will be combined. Investing in a person could mean investing in their social presence, income, business, and more for the foreseeable future
This also means that we’ll see different forms of scouting coming online. Where can we find talent that makes great content, whatever that content may be, and find an interesting investment opportunity.
In return, these probably often just starting content creators, can find some support and financial gains early on in their career. Win-win.
And to make it an even bigger win-win-win imagine this:
If I am invested in you as a content creator, I want you to succeed because it means that the coin value rises. In essence, this means that all your followers and investors will now cheer you on and share your content, not only because they enjoy it, but also because it’s in their best financial interest.
It’s important to know that the value of the creator coins go up parabolically, meaning that the early bird can potentially see tremendous gains. However, it also means that there is a high risk of pump and dump schemes, and the content creator can buy up a lot of their coins early for cheap, and then sell all for a profit when the time comes. If that is wise long-term, probably not, but there will always be anonymous creators who will start this with only this goal in mind. So just as with crypto’s in general, make sure you know what you’re invested in.
As another positive sidenote, creators can set a percentage of every trade as a fee for themselves. Generally, I’ve seen it at 10% but I’ve seen some outliers. The best practice is not yet clear to me, but setting it too high will deter investors, while setting it too low would not create an impact for the creator.
There’s still a lot to be improved and new additions to be added for this to be completely reliable, with more options for benefitting from the creator coins, and perhaps more security is needed.
To end this article, I’ll show 2 interesting use-cases that I came across on Diamondapp.
Wormals is an account created by a 12-year-old girl that made a series of Worm-based NFT’s. Deso also has a big NFT space with its own platform nftz.zone, which I’ll dive in on later.
The wormal NFTs are doing pretty good, but what’s more interesting here is that you can buy some of her creator coins. Now I’m not sure if this is already implemented but for this example, let’s say that by buying her creator coin, you are entitled to some of the profits she generates with her NFT – maybe 10% that is shared among the creator coin holders.
In essence, you are now invested in the success of a 12-year-old blockchain-native girl that at this young age is already selling hundreds of nfts.
If Deso becomes the top socialfi chain, and her account lives on for decades, for all those years, you may have some recurring passive income by holding some of her creator coins.
And if you believe in her becoming better and better, getting more skilled, more followers, and more income then it becomes an exciting bet that could benefit both parties for years to come.
While at the same time, because you want your investment to succeed, you’ll help her gain more attention and popularity. And, of course, she also bought some coins for herself, and the value of her own coins go up. Like I said win-win-win.
Randhir has created a tiered system for his coin holders, where more significant holders get more advantages.
While some of the work, for now, has to be done manually, it incentivizes holders to hold, and even to become a bigger holder.
His tiers are dependent on how many coins are in circulation.
As you can see, if you’re interested in his content, it makes sense to become a bigger holder.
As you can imagine, the options in the future here are vast. Although the available options, for now, are somewhat limited and have to be added manually, with future updates, these can all be automated.
Perhaps we can even see people offering 10% of their total platform (including legacy platforms like Youtube) income to coin holders. Artists can offer tickets to their concerts and backstage access, perhaps people can add advertisement space on their private websites, and more.
There are also many options for businesses to capitalize on their creator or business coins, but I’ll discuss this in another episode where we’ll take a deeper look into DaoDao, Deso’s Dao department.
Join me on this quest and learn something in the process. I’ll research for you and make everything concise and to the point.
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See you in the next update!
CryptoDeepDive
P.P.S. Although it's focused on Deso for now, I already have a couple of articles on Hive and it will be in the spotlight soon enough!
Tip – If this gets some attention, it might be a good idea for you big players out there to start following and appreciating the posts to lure in some new users to your preferred platform 😉
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