TL; DR:
Driven by the Internet and AIGC technology, the creator economy has experienced significant development, providing creators with diverse income methods ranging from advertising revenue to direct sales.
AIGC projects open to the public such as DALL-E 3, Midjourney and Stable Diffusion have performed well in AI painting applications. For the creator economy, the addition of AIGC has improved the efficiency and creative freedom of content creation.
Although the creator economy faces challenges such as copyright issues and unstable income, the integration of Web3 provides new solutions, especially in strengthening copyright management and monetizing works.
NFPrompt, as an emerging platform that combines Web3 and AIGC, provides creators with an integrated environment for creation, trading and social interaction. NFPrompt brings wider exposure and participation opportunities to the project by joining the Binance LaunchPool for the initial public offering of the $NFP token.
In the future, with the development of AIGC and blockchain technology, it is expected that the creator economy will be more diverse and inclusive, providing more opportunities and freedom to creators and consumers.
1. The creator economy has come a long way
1.1 The Internet opens the curtain
The creator economy refers to a new economic model that allows creators to earn income by creating digital content with the assistance of Internet platforms. Driven by the Internet wave, the creator economy has become an important part of the global economy. Especially with the emergence of artificial intelligence generated content (AIGC) and Web3 technology, this field is undergoing unprecedented changes. Today, the market size of the creator economy has reached unprecedented heights. According to estimates by Goldman Sachs research team, the compound annual growth rate of the worlds 50 million creators will reach 10% to 20% in the next five years, and the global total is expected to exceed US$500 billion by 2027. AIGC brought about by technological breakthroughs has opened up new opportunities for content creation. A new world. This growth is driven by advances in digitization and globalization, which allow creators to reach a wider audience and earn revenue in a variety of ways, including advertising revenue, sponsorships, merchandise sales, subscription services, etc.
The creator economy can be traced back to the rise of blogs and social media sites in the early Internet era. At that time, content creators began to use these emerging platforms to share their ideas, works and life experiences. The creator economy has experienced significant growth over time. Early blogging and social media platforms, such as MySpace and YouTube, provided individuals with a space for expression and sharing, as well as the possibility of earning income. YouTubes partner program is an important symbol of the early implementation of the creator economy, which incentivizes the creation of content by allowing video creators to earn advertising revenue through their videos.
Youtube marks a new era of the internet’s creator economy
As time enters the 21st century, with the popularity of social media and the increase in the use of smartphones, more mobile platforms have emerged, such as Instagram, TikTok and Snapchat, which are popular on mobile devices, providing creators with more diverse ways of expression. and ways to make money. At the same time, the emergence of crowdfunding platforms such as Kickstarter and Patreon has provided creators with diversified income streams, including selling products and services directly to fans through content, as well as making money through sponsorship, membership services, and copyright sales.
1.2 AI enters the game and the rise of AIGC technology
Entering the 21st century, the rapid development of AI technology has brought about a series of innovative applications, which has greatly affected the creator economy. These applications include intelligent content recognition, which can evaluate the quality of content; and intelligent system recommendation, which optimizes content production and demand matching. Especially in 2022, with the advent of a number of image AIGC (artificial intelligence generated content) products, such as DALL·E 2, Stable Diffusion, Imagen and Midjourney, as well as the all-round assistant tool ChatGPT launched at the end of the year, 2022 officially becomes the first year of AIGC. . The emergence of AIGC technology marks the gradual development of AI to its more advanced forms, and for the creator economy, AIGCs efficient, close-to-human-level logic and content generation capabilities have opened up a new development path for the creator group.
AIGC can efficiently generate design content with various styles
The core technology of AIGC (artificial intelligence generated content) is mainly based on the Transformer model, which is an efficient algorithm pre-trained on massive data for understanding and processing language or images. The general process of AIGC is to first deeply analyze the input Prompt (ie, instruction or concept). This step is usually completed by a large model of language or image (GPT series, BERT series, CLIP series, etc.); then the diffusion model is used (Diffusion Model), using the principle of retrograde calculation of Gaussian blur to complete the final generation of high-quality images. Along with the craze of AIGC, there are an endless stream of AIGC applications emerging on the market. However, the most outstanding among them in AI painting applications are still the earliest released old projects: DALLE 3, Midjourney and Stable Diffusion, which are famous for their excellent performance. The build quality stands out. (In fact, there is also a Google self-developed product, Imagen. However, Google has implemented its previous closed-source style. Outsiders can only learn about its clues from other products launched by Google and various academic papers published. This shows from the side. The negative impact of the monopoly of centralized institutions, but this is another topic.) Back to the topic, the following figure shows the different results generated by three products on the market when receiving the same Prompt. It can be seen that MidJourney 5.2 has the best generation results. It not only perfectly generates the scene according to the description of Prompt, but also adds a lot of details to the scene. The generation result of Dall-E 3 is second, but it is also generated exactly according to the description of Prompt. Stable Diffusion has the worst results and does not generate the appearance style of anime girl. This may be due to the characteristics of its open source project, which results in the insufficient scale of training data it uses.
Prompt: Anime girl with orange hair looking at tv looking at her favorite show.
The same prompt has different results in different applications.
Generally speaking, AIGCs technology is still at the stage of assisting human creators in their creations. A hot topic on the market is how to cleverly design prompts to achieve more optimized generation effects. Thinking from another perspective, this is also a manifestation of the early stage of AIGC technology. In the future, AIGC products are expected to gain more creative freedom. With only minimum standard prompt input, high-quality generated content can be generated according to different scenarios. As AIGC technology continues to develop, it will be increasingly integrated into the daily workflow of creators, and its role in the creator economy will become increasingly significant. This technology not only improves the efficiency of content creation, but also gives creators unprecedented freedom and new creative forms.
1.3 Difficulties and opportunities of the creator economy
It is true that the addition of AIGC has brought huge opportunities to the creator economy, but we have to admit that the creator economy still faces many new and old challenges at this stage. include,Income is affected by centralized platforms, copyright issues caused by generated content, difficulties in maintaining the long-term influence of created content, and potential risks brought by the inexplicability of AI, etc.
First, for many creators, especially individuals or small studios, their income is highly dependent on centralized platforms to publish and promote their works. Because many creators rely on project work or unstable advertising revenue, their income is easily affected by changes in platform policies. For example, vloggers and influencers who rely on advertising revenue and sponsorships from traditional online channels such as YouTube or platforms such as Tiktok, their income is usually closely related to the number of views. However, due to changes in centralized platform policies or algorithm changes, their videos may suddenly lose exposure, resulting in a significant drop in revenue. This dependency also further limits creators’ creative freedom and ability to monetize it.
YouTubes AdSense system allows creators to receive a proportional share of advertising revenue
Secondly, in the digital age, content is extremely easy to copy and disseminate, which poses major copyright protection challenges for creators. Especially without a clear copyright statement, their works can easily be used or stolen by others without permission. For example, the work of photographers, illustrators, and music producers may be used for commercial purposes without their permission, and they often lack sufficient resources to safeguard their copyright interests. This problem is particularly acute in the field of AIGC, as determining the originality and attribution of content created by artificial intelligence is a complex and expensive task. In addition, regulation in this emerging field is still immature, which may lead to market uncertainty and risk. However, these challenges have also given rise to new business models and innovative opportunities, such as using blockchain technology to track and manage copyright.
Fuse Remix Video that is all the rage on Tiktok,
It gave full play to the unlimited creativity of the people, but also became a copyright lawyers nightmare
Furthermore, in the current creator economy, if you wantMaintain the long-term influence of creators, gaining the support of a large number of fans is an essential key factor. However, building and maintaining a loyal and active fan base is a long and difficult process. Fan support is often influenced by content quality, market trends and the creators personal brand. Additionally, fans preferences and interests may change over time, creating uncertainty for creators.
2. Looking for opportunities in Web3
The core of Web3 is blockchain technology and cryptocurrency. With its remarkable achievements in the financial field, it has gradually stimulated the interest of more developers. They have begun to explore the application of Web3s core technology to other fields to create unique Perspectives address long-standing problems in these fields. The creator economy sector is also actively responding to this trend. Especially driven by AIGC (artificial intelligence generated content) technology, the combination of Web3 and the creator economic model has brought a new dimension of thinking to this field. The most direct change is that through smart contracts and non-fungible tokens (NFT), creators can now more easily control the copyright of their works and conduct monetization operations. NFTs in particular play a key role in ensuring the transparency and simplicity of copyright, ownership and transfer processes for digital artworks, which is particularly important for AIGC-generated content. The application of these technologies not only provides new revenue channels for creators, but also reduces their dependence on traditional intermediary platforms.
2.1 Create an integrated Web3 platform for creators
Driven by the mission of promoting the creator economy and promoting the integration of Web3 and AIGC, the NFPrompt project (hereinafter referred to as the NFP project) follows the community-led development idea and establishes a collection of creation, trading and Social all-in-one Web3 platform. Through the latest blockchain and AI technology, NFP focuses on lowering the user threshold and empowering user creation, allowing new users to quickly and easily get started and produce high-quality content within 30 years, and convert these contents into NFT (non-NFT). Fungible tokens), thereby establishing their digital copyright and ownership. The NFP project proposes to convert Prompt, the core of creation in the current large-model environment, into NFT, creating a unique creative process, social environment, and profit space. As of the time of writing, the NFPrompt project has attracted more than 180,000 creators to register, and more than one million NFTs are ready to be minted.As the leading project under the Web3 x AIGC trackDeserved.
The NFPrompt project has attracted a large number of users and traffic
Simple and intuitive creation interface UI design
-Core functions of the platform
On NFP, the core of user experience is ultimate simplicity and innovation. Users only need to register with an ordinary email or Web3 wallet and enter a prompt (command or creative concept). The platforms system can quickly generate corresponding content using the latest AI models (including DALLE 3, Stable Diffusion and Midjourney V 5), covering Various forms such as text, images and audio. The generated content can be flexibly presented based on user needs, whether as stand-alone artwork, commercial advertising content, or personalized social media posts. This feature greatly simplifies the creative process, especially for those creators who may lack specific skills or resources, lowering the barrier to entry and providing unprecedented convenience and efficiency.
Four interactions between users and NFP products: registration, creation, casting, and transaction
NFP is more than just a content generation tool, it also provides users with a path to convert created content into economic value. Platform users can mint their own generated content into NFTs and trade them on the platform’s built-in market. Not only does this enable creators to create unique and valuable works, it also leverages blockchain technology to ensure their digital copyrights are protected and to receive financial rewards directly from their creative labor. Furthermore, thanks to the high-performance technology architecture of opBNB used by NFP, NFP provides creators with an extremely cost-effective creation environment: the creation cost of each NFT is as low as a few cents, which is a cost-sensitive An attractive advantage for small teams or individual creators.
Gas fees for user transactions dropped from $0.3 to $0.01 thanks to opBNB
-Creator community and interaction
Furthermore, NFP has also established a vibrant community to encourage communication and cooperation between NFT content creators, as well as between creators and the audience of their works. Here, users can freely share their creations, obtain valuable feedback, and have the opportunity to join forces with other creators to create new works and increase the impact of their creative content. By regularly holding various themed activities and creative competitions, the community not only inspires creative inspiration, but also provides a stage for users to showcase their talents and gain recognition. At the same time, NFP has also specially introduced a Credit System and corresponding voting mechanism. Through these mechanisms, users can earn points and tokens, and use these rewards to purchase the works of other creators or increase the visibility of their own works. . These features make NFP a comprehensive economic ecosystem for creators, which not only supports the artistic pursuits of creators, but also provides new income opportunities.
The project team will regularly hold various content creative activities
2.2 $NFP is listed on Binance through LaunchPool, and the latest Tokenomic is released at the same time
On December 19, 2023, the $NFP project officially announced that it will conduct an initial token offering by participating in the Binance LaunchPool. According to the latest Tokenomic released at the same time, the total number of $NFP tokens planned to be minted is 1 billion, of which 11% will be distributed for the first time by Binance LaunchPool. Referring to the average project market value of Binance LaunchPool of 220 million U.S. dollars, and the last project of Binance LaunchPool, Fusionist (ACE), which is 350 million U.S. dollars, we can roughly estimate the $NFP project: the expected opening price is 1.3 to 1.7, and the annualized income is 60 % - 160%, 7-day risk-free return 1% - 3.42%, among which the cost price of borrowing BNB to obtain a single NFP is approximately between 0.4-0.6.
The average market value of Binance LaunchPool’s historical projects is approximately US$220 million.
Source: ChainBroker
According to this valuation, it will be 20% - 40% higher than the expected return rate of Fusionist (ACE), the last LaunchPool token issuance project. Of course, this includes the fact that ACE’s LaunchPool allocated a smaller share of tokens and the current Factors such as higher interest rates for lending and borrowing pledged tokens.
In addition to 11% of Binance LaunchPool, other token allocation parts include: initial airdrop, team, investors, short-term growth fund and long-term financial fund,Distribution ratioAs shown in the table below. Notable among them are:
The design of this token issuance model follows the fair launch model used by the currently popular Bitcoin Inscription project. This model gives ordinary investors and banker institutions the opportunity to compete on the same stage, which is quite a legacy of ancient cryptography. .
In addition to achieving fairness in the initial launch, subsequent token issuance aims to maintain consistent fairness principles. While ensuring that tokens are fairly distributed to all contributors to the token economic model, it also ensures healthy competition within the system and stimulates healthy growth of the ecosystem within the system.
In the early stages, the proportion of chips held by large investors and investors has been reduced compared to the early design. More tokens will gradually be distributed to community creators, and “no investors will be left flat.” At the same time, the team is committed to building long-term projects and actively extends the team token unlocking and release period: both the team and investors are released in 1 year + linearly unlocked in 5 years.
Accounting for 27% of the total, the long-term financial fund part is subject to public supervision and voting, which actually reduces the projects token circulation and is conducive to long-term value construction.
Distribution ratio of $NFP tokens
The unlocking schedule of $NFP tokens is as shown in the figure below, in which the shares of Binance LaunchPool and the initial airdrop are all unlocked immediately, and are allocated to the team and investors after a one-year lock-up period and begin linear unlocking in Q4 2024. The rest will be unlocked linearly starting from Q4 in 2023.
Unlocking schedule for $NFP tokens
Finally, as the native token of the NFP project, $NFP has also been givenFee payment, community governance, staking income, receiving airdrops, and community impactVarious functions, etc., will be gradually implemented as the project is updated, with the target of being launched in Q4 of 2023.
2.3 New features worth looking forward to
In addition to frequently organizing creative activities in conjunction with other projects to promote the project, the project team is also actively preparing for subsequent updates of NFP products to further attract users. The main goals of the subsequent roadmap are as follows. The core concept is to further enable users to realize their imagination and influence through creation.
2023 Q4:
SocialFi: Social gaming and user stratification mechanisms will be established to enable key opinion leaders (KOLs) to enhance their business influence through boutique series.
Market or community activities on the opBNB platform.
The pledge mechanism in token economics is to obtain rewards or participate in project governance by pledging tokens.
2024 Q1：
Establish the NFP Creator Foundation to promote the commercialization of NFTs. The foundation will purchase popular NFT collections voted on by the community.
Establish partnerships with commercial customers, including establishing partnerships with well-known artificial intelligence companies and expanding cooperation with Web2s well-known retail and cultural brands.
Provides advanced users with more AI models and tools for creating custom art as a paid service.
Launched the official NFT series that binds platform rights.
2024 Q2：
NFP AI Foundation: Contribute to cutting-edge generative AI research in the field of scientific research.
Expand in emerging countries to provide easier access and friendly mobile user experience for mass user adoption and growth.
It is worth mentioning the new SocialFi features planned to be launched in Q4 2023:
Following the success of SocialFis new paradigm Friend.tech, the NFP project plans to launch a new feature that integrates user accounts with the pricing mechanism for the content they create. This mechanism analyzes the popularity and supply of the product and prices the work based on a preset price curve. In addition, each NFP work will have an embedded chat channel, aiming to build a direct communication bridge between creators and collectors. This initiative will enhance the influence of creative content while providing effective feedback channels for creators to improve creative efficiency and quality.
Friend.Tech: The key bound to each account is priced according to the price curve (the more people buy, the higher the price)
After purchasing, you can enter an exclusive chat room where you can communicate directly with the account owner.
A future update of this feature is that on the NFP community platform, the share volume of creative content will directly affect its trend index and final pricing. Higher sharing rates mean increased visibility and popularity of the work, potentially increasing its final market price. This mechanism encourages creators to not only create high-quality content, but also actively share it to increase the exposure and value of their works.
3. A new journey of the creator economy
As a pioneer application that implements Web3 and AIGC technologies, NFPrompt demonstrates how to empower creators through technological innovation, thereby opening up new income channels and bringing important inspiration to the future development of the entire creator economy. The emergence of this platform not only marks that the creator economy will no longer be limited to the traditional creation and trading environment, but also demonstrated the market’s enthusiasm for the development of AIGC x Web 3 in the creator economy through its successful launch on Binance LaunchPool. Long term bullish.
Looking to the future, Web3 and AIGC will continue to promote the development of the creator economy, and the AI track in the Web3 field is also attracting the attention of more and more investors. As these technologies mature and become more widely used, we can expect to see more innovative application cases emerge. For example, AI technology may develop further to create more complex and personalized content. At the same time, with the popularization of blockchain technology, more creators will be able to directly benefit from their works without relying on third-party platforms.
In summary, the AIGC creator economy in the Web3 era is developing rapidly, bringing unprecedented opportunities and challenges. As technology advances and the market adapts, the future creator economy will be more prosperous and diversified, which will bring more freedom and opportunities to creators, while also providing consumers with more colorful digital content.
statement:
This report is an original work by @GryphsisAcademy contributor @chenyangjamie. The authors are solely responsible for all content, which does not necessarily reflect the views of Gryphsis Academy, nor the views of the organization that commissioned the report. Editorial content and decisions are not influenced by readers. Please be aware that the author may own the cryptocurrencies mentioned in this report. This document is for informational purposes only and should not be relied upon for investment decisions. It is strongly recommended that you conduct your own research and consult with an unbiased financial, tax or legal advisor before making any investment decisions. Remember, the past performance of any asset does not guarantee future returns.
