Why GIFTO?

Gifto Official
Nov 10, 2017 · 4 min read

The Pain Point for Content Creators

This has been written in the GIFTO whitepaper, but this is something we at the Gifto Team feel strongly about, and so we have decided to deep dive again into the pain point of content creators. In essence, this is the reason why we do what we do.

When large global social media and broadcasting platforms such as Youtube, Instagram, Facebook emerged, they created ecosystems where content creators could make a living based on the ability to easily create content, build a fanbase and allow for income generation through the form of advertising revenue. However, the incentive model which drives these ecosystems is largely centralized and dominated by either the platforms or the paying advertisers, often at the expense of content producers and consumers. Since advertisers and marketers typically place greater value on reaching as broad an audience as possible, the present incentive system ended up disproportionately favoring the most popular 1% of content creators with the largest viewer base, subscribers, or “hits”.

So long as less popular content producers continue to be deprived of representation and opportunities at the sustainable end of the revenue-split table, the monetary incentives generated purely by advertising revenue will continue to be swallowed by the top few percentage of content creators with the most traffic. The overall quality and diversity of content on the platform may suffer because the vast majority of content creators is simply not able to command a reliable income stream under the present incentive scheme, regardless of their value to the digital consumers. The consequence is that due to the massive influence of advertisers on the type of content that ends up being rewarded, a large catalogue of high quality content may end up never being produced simply because it would be unsustainable solely relying on advertising revenue. This represents a critical problem for both the platforms and audience.

Statistics show that only 0.33% of all videos on Youtube has more than 1 million views, with videos of 1 million views earning only a measly USD $2,000. This epidemic of systemic revenue deprivation is highly concerning to us. Many deserving content creators are completely neglected by this immensely lopsided system, which disproportionately favors mass-market content over, niche, tailor-made content, which may be of equal or higher value to a viewer. The under-representation of the overwhelming majority of creators on many global platforms today paints a worrisome picture of the content production industry as a whole. While we believe that all artists, producers and writers should be able to make a decent living, there is simply no impetus to change this crippling model.

To make matters worse, one of the major platform, Youtube, recently just changed their Partner program policy such that no content creator would be able to monetize unless their channel reaches 10,000 lifetime views. This was done in the interest of keeping offensive videos away from brands but simply by having such a broad stroke execution, it clips off substantially more of the already suffering content creators’ earning potential.

With this two pronged squeeze, advertising revenue enabling only the top 1% to make money and implementation of platforms’ prohibitive policies, content creators are looking less likely to be able to sustain themselves even if they have a decent following.

Our Proven Solution

This is where the Gifto solution comes in. Gifting is a traditional form of showing appreciation to each other and spans countries, cultures and generations. By allowing gifting, there is now no need to have a top tier viewership number to have a sustainable income. Any amount of viewership numbers would be able to generate income via gifting for the content creator. This is akin to but not as crude in form as tipping; what’s more, with the advent of better technology, the gifts can now be made to be very attractive and desirable both by the sender and the receiver. The long tail of content creators can now enjoy the fruits of their labour.

The Gifto Solution was designed from the very beginning to be platform agnostic. This means that regardless of what social media or content distribution platform the content creators prefer, they would still be able to plug into the Gifto Protocol to receive gifts and redeem, creating a virtuous circle for better and higher quality content.

We don’t want to stop there, we want to move a step further and remove intermediation totally. The Gifto Solution will be moving to the blockchain as the Universal Gifting Protocol. This is where the whole process becomes a peer to peer exchange without intermediation. There would now be no agency or platform in between any transaction. Gift creations would now be thrown wide open for people to participate in the whole gifts creation process, effectively spawning a new industry of its own. In time, even the Gifto organization will be transcendent and can be taken out of the picture totally as the gears of peer to peer networks start cranking.

As a form of recognition and proof that we are moving in the right direction, a recognition award was given by the Moroccan government to Uplive for enabling impoverished artists everywhere to monetize from their fanbase, i.e. to be able to earn a decent living creating content that they are passionate about. Ultimately, Gifto is created to solve a real world problem for real people. This is what drives us at Gifto to really push the boundaries and to make gifting as universal and ubiquitous as possible (what decentralization meant to be).

Come join us and our conversation at https://gifto.io.

Gifto

Decentralized Universal Gifting Protocol for Global Content Creators

Gifto Official

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The mass adoption crypto token and wallet for fun, fans, and content creators.

Gifto

Gifto

Decentralized Universal Gifting Protocol for Global Content Creators

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