How NFT Profile Pictures (PFP) and Soulbound Tokens (SBT) Can Transform the Creators’ Economy
“Monetization” is the biggest challenge for content creators. Maintaining enthusiasm to create and to produce high quality content to satisfy fans while making a living and continuing to create content is a practical and difficult problem for all creators.
The most well known monetization method for the creators of Web 2.0 is the “advertising model”. In this model, centralized platforms use algorithms to convert advertisement views into revenue, and creators make money through profit sharing with the platform. However, this kind of model between platforms and creators (content providers) has led to several problems. First, the advertising revenue generated from each view is fixed, and unless the content is favored by the platform’s algorithm and gets a lot of exposure, revenue growth on the advertising revenue is limited. Second, it is difficult for creators to manage their fans, since platforms have centralized control. A creator’s hard work may disappear overnight due to changes in platform policies, separating them from their loyal fans.
P2P monetization models came about as a way to resolve the bottleneck issues with the advertising model. There are two well known P2P models: the donation/tipping model and paid subscription model. Both offer monetization for a creator through direct contributions from the creator’s most loyal fans. The advantage of this kind of model is that high levels of monetization can be achieved even with a few enthusiastic fans, and creators can reduce ad exposure to avoid negatively impacting user experience. However, even with the P2P model, centralized platforms still have control, and when fans use different platforms, this results in blurred identification when they create new personas for each platform. This creates new issues for Creators. Here are two issues of the P2P model:
- Cross-platform fan engagement is not possible.
Fans contribute to creators with the hope of receiving more attention from creators, receiving VIP treatment, and standing out from other viewers. On Web 2.0 platforms, medals or rankings are usually used to display VIP status, allowing creators to identify and manage their passionate fans. Information like fans’ privacy rights are stored on the centralized platform, including the most valuable data: the relationship between fans and creators. This relationship should belong solely to creators and fans. A safer and more efficient way to return this right to creators is needed.
2. Inability to identify and manage fans over time.
Centralized platforms usually save user interaction data for a certain period of time and the information provided to creators is quite generic. If creators want to better keep track of and manage fans who support them monetarily, other tools are required. Additionally, fans have to be educated about these tools as well. Currently, there is a lack of effective fan identification and management tools.
In Web 2.0, centralized content platforms control everything and therefore the above mentioned issues with monetization are impossible to resolve. Web 3.0 is capable of changing things around for the better.
Web 3.0 NFT Profile Pictures (PFP) and Soulbound Tokens (SBT): Cross-platform, Cross-time, and Soul Recognition
The first Web 3.0 solution: the emergence and mass adoption of NFT Pictures for Proof (NFT PFP).
NFT PFPs are the first form of data records that can be used across platforms, allowing users to truly own their own portable digital assets. For example, the “Meta COSer Club” ERC-721 NFT PFP issued by Contentos can be displayed cross-platform on COS.TV and Instagram digital collections by linking the same wallet holding the NFT. NFT PFPs are a digital asset that truly belongs to the user.
The creators of COS.TV are experimenting with issuing their own NFT PFP collections to reward their loyal fans. For example, the Brazilian video creator Voepa is issuing special NFT PFPs to fans who will receive and store the NFTs on their COS.TV mainnet wallets to display on their profile page or even feature it on their Instagram digital collectibles page. The NFTs can even be traded with other fans on NFT marketplaces. Cross-platform, proof of ownership, tradable digital assets allows creators and fans to achieve true engagement, creating new monetization opportunities for creators.
The application of Soulbound Tokens (SBT).
Traditionally, fans participate in creator events, such as film premieres, live broadcasts, offline meetings, etc. but after the event, no record of participation remains. The check-in method collects fan information such as purchase records and emails, but creators won’t be able to properly engage with these fans across a long period of time and across different platforms. This in turn affects monetization as creators are unable to track, manage, and retain the valuable fans that joined their events.
Soulbound Tokens (SBT) offers a new opportunity for creators to identify valuable fans through the minting of SBT: an exclusive, non-tradable, certificate type token issued to unique fans according to event participation or contributions. These SBTs will exist as a marker (beacon), allowing creators to precisely identify their core fan groups across platforms and across time. Since SBTs cannot be traded, this can further highlight the dedicated track record of the fan, and both fan and creator will not have to worry about price speculation like with normal cryptocurrencies.
In 2022, the Contentos Foundation began supporting our global creator community with the issuance of exclusive NFT Profile Pictures (PFP). Voepa, a well-known Brazilian blockchain video and podcast creator, launched a personal 3D NFT to reward his loyal fans, and the COS.TV Vietnamese community launched 500 Vietnam GoldStar MetaClub to celebrate their community. These NFT PFPs are all in the ERC-721 standard, and holders are able to display them on COS.TV, their personal Instagram digital collection and on other platforms that support the ERC-721 standard, greatly expanding the influence of COS.TV creators and creating an opportunity for a wider audience to better understand and engage with our Contentos ecosystem.
COS.TV also supports the verification of well-known NFT PFP projects, allowing their holders to use their PFPs on COS.TV. Currently, well-known projects such as BAYC, Doodle, etc. are included in the list of verified NFT PFPs on COS.TV, providing additional use cases for NFT PFP projects.
Empowerment extending into the Metaverse
NFT PFPs verified on COS.TV will be further empowered with new use case scenarios in the upcoming 3D COS.SPACE metaverse Stage and Stadium, and Soulbound Tokens will allow creators and fans to engage in events within the COS.SPACE metaverse.
A creator could hold the premiere of their personal video or audio work at a 3D COS.SPACE Stage and allow fans who hold unique NFT PFPs to participate. Fans that participate could receive a Soulbound Token (SBT) as proof of attendance. In the near future, creators will be able to clearly identify and track highly monetizable fan groups through the SBT recorded on the Contentos mainnet and conduct VIP or reward activities accordingly.
The most important part of all of this is that SBTs issued on the Contentos mainnet will not be restricted by any centralized content platform, and will be used for offline activities and used across platforms. Through decentralized verification, the true value of community will be returned to creators and fans, which is the great potential and future of Web 3.0.
Web 3.0 is still in its early stages and more new attempts should be made in directions that Web 2.0 cannot and will not achieve but at the same time is extremely valuable to users. Competing with mature products in the Web 2.0 era lacks advantages; what users truly want is to own the rights of all the content and data they produce online. The emergence of NFT PFP and SBT on Web 3.0 will provide the opportunity to truly change the global creator environment and will provide new creative solutions. The Contentos Foundation will continue to be at the forefront of this development, building and finding innovative solutions for all creators and fans.