Stake, Support, and Sustain: Creator Staking

Subsocial debuts its Creator Staking feature - a sustainable value model that mutually benefits creators and stakers.

[Reading Time: 5 min]

Overview:

• Debunking the current paradigm of SocialFi dApps creating Ponzi economics.

• Understanding Creator Staking and its significance for the network, SUB token holders and creators.

• Addressing content creators' challenges and enhancing the creator-user relationship in the web3 domain.

General Landscape of SocialFi:

• Emerging dApps in SocialFi frequently fork and spin off, prioritizing network effects and occasionally promoting a Ponzi-like economy for the users.

• This pattern incentivizes extracting value from each other, causing users to jump between platforms seeking better returns.

• While some platforms have managed to create significant attention and buzz, many end up as Ponzi game for influencers.

Challenges Facing Content Creators:

• The current Web3 platforms often fall short in offering tools and sustainable economics for creators.

• Typically, creators choose between:

1- Doing as a hobby without any compensation, leading to less productivity or quitting.

2- Approaching treasuries with the unpredictability of outcome and conflicts or receiving grants from blockchain foundations. And without a substantial follower base or reputation, these attempts often fail, leading them to the most popular & convenient approach:

3- To gain a larger audience and reach broader network benefits, many content creators opt for a strategy: 'farming' their readers/followers. They pivot towards recycling content and primarily focus on producing content that promises quick gains for their audience.

The outcome?

• Quality is overtaken by quantity in fast-burn content.

• It leads to a cycle where value extraction from each other becomes paramount.

• Creates a culture of value extraction dominates, with creators endorsing similar tactics across platforms.

Subsocial's Value Proposition:

• Creator Staking System: A strategy for a sustainable, inflation-resistant economy for both the platform and creators.

It will serve to the network by shifting token share from inactive to active participants and incentivizing high-quality content.

•Features: Staking incentives allow SUB token holders to support their preferred creators by staking, with rewards being consistent regardless of the creator.

The beta version introduces 10 top-tier creators, with plans for being permissionless or gated by on-chain governance. [I am one of these ten. Check on each creator and find content that speaks to you.]

• The reward distribution:

66.7% for stakers, 33.3% for creators.

Bigger stakes -> larger rewards

• SUB's inflation rate: 1.58%

At the kickstart; 90% of this -> Creator Staking rewards = 1,185,000 SUB per month (395,000 split among creators & 790,000 split among stakers)

A Broader View:

• The Role of Content Creators:

Many argue that content creators shouldn't be paid from treasuries; they should either get a regular job or volunteer.

Yes some can do. But this view misses out on the important role creators still play in network's growth at this very early stage of crypto.

It's challenging to measure their real influence on a blockchain's demand and user recruitment.

Yet, they currently act as essential bridge between users/gamblers/investors, and the foundational tech, ensuring the project stays relevant to people in this rapidly changing, speculative immature landscape where narrative often overshadows real value.

Without top-tier content creators and ecosystem agents driving growth by attracting both devs and end-users, and without revenue from the network effect, you risk biz stagnation or may feel pressured to move to an ecosystem under the naive assumption of finding user activity & liquidity.

Relying only on cutting-edge tech to attract users can be a strategy for those with very deep pockets, but if not, you might slowly see a drop in demand over time, and eventually sunset.

Finito:

Amidst the challenges, the potential of SocialFi and competition in this space, Subsocial's Creator Staking system offers a possibility of a sustainable solution, emphasizing the intrinsic value of content creators and resonating with the ethos of Web3.

Filling the gap between creators and fans/supporters, offering various tools and economics between them in a non-ponzi structure, it also offers to ensure that the best info finds its rightful audience.

Lastly, if you're still unfamiliar with a really useful Web3 dApp from the same team, check out "Account Abstraction" way of chatting -> http://grill.chat.

You can right on jump in anon chatting without the hassles of wallets, tokens, or transaction signatures.