Foundering Podcast Summary: Evolving Money – Rebuilding the Creator Economy
Podcast Title: Foundering
Episode Title: Evolving Money: Rebuilding the Creator Economy (Sponsored Content)
Host: Bloomberg
Release Date: December 19, 2024
Introduction
In the latest episode of Foundering, Bloomberg delves into the transformative potential of blockchain technology in reshaping the creator economy—a sector traditionally dominated by powerful social media platforms. Titled "Evolving Money: Rebuilding the Creator Economy," this episode, sponsored by Coinbase and Bloomberg Media Studios, explores how blockchain can empower content creators by granting them ownership, enhancing revenue streams, and fostering direct relationships with their audiences.
The Persistent Struggle of Content Creators
The episode opens by highlighting the ongoing challenges creators face in the digital age. Jesse Pollack, VP of Engineering at Coinbase and creator of Base, articulates the frustration of creators who, despite generating viral content, see only a minuscule fraction of the profits:
Jesse Pollack [07:13]: “The creator is left making whatever money the platform offers them. I estimate it's about 5%, and the platform keeps the rest.”
This systemic issue isn't novel. It echoes historical struggles where gatekeepers controlled the dissemination and monetization of creative works. Drawing a parallel to 18th-century England, the podcast recounts philosopher John Locke's fight against the monopolistic Worshipful Company of Stationers, emphasizing that the modern digital landscape mirrors these past power dynamics.
Dr. Adrian Johns [03:31]: “It was essentially a monopoly, a kind of cartel that looked after the whole trade.”
Despite the advent of the internet promising democratization, the consolidation of power within a few colossal platforms continues to stifle creators' autonomy and earnings.
Blockchain: The Game-Changer for Creators
Transitioning to solutions, the podcast introduces blockchain as a revolutionary tool capable of dismantling the entrenched gatekeeper model. Jesse Pollack discusses Base, a platform designed to leverage blockchain technology to empower creators:
Jesse Pollack [06:12]: “Base is a platform that people can use to build all kinds of apps with blockchain technology.”
By moving "onchain," creators can retain ownership of their content, access transparent algorithms, and establish direct monetization channels. The promise is to shift control from opaque platform algorithms to an open, decentralized internet where creators dictate how their work is distributed and monetized.
Jesse Pollack [08:46]: “When it comes to things like owning my art and getting paid for it and reaching my audience, you do the exact same thing.”
This paradigm shift envisions a "level playing field" where creators have equal opportunities to thrive without being tethered to the whims of major platforms.
Real-World Applications: Doodles and Blackbird
To illustrate blockchain's practical applications, the episode features Julian Hogan, CEO of Doodles, a Web3 entertainment company. Doodles exemplifies how blockchain can foster a vibrant creator-fan ecosystem:
Julian Hogan [12:20]: “We're basically what a modern day cartoon franchise might look like. We make short films, we make original music.”
One standout project, Project Gray, a short film premiered at the 2024 Toronto International Film Festival, showcases how blockchain can integrate viewers directly into the content:
Julian Hogan [13:30]: “People use avatars to communicate constantly. They make gifs, they make stickers, they make short form animations.”
By enabling users to own their digital avatars and participate in the storytelling process, Doodles creates a deeper, more personalized connection between creators and their audience. This approach not only enhances engagement but also opens new revenue streams as fans are willing to invest in owning unique content.
Another example is Blackbird, an on-chain dining rewards app developed by Jesse Pollack:
Jesse Pollack [15:38]: “Blackbird is kind of like a traditional dining rewards program. But by going on chain, the app gives restaurants a direct, transparent connection with every customer.”
Blackbird allows restaurants to build personalized relationships with customers, enhancing their dining experience through tailored interactions based on transparent customer profiles.
Envisioning the Future: An Open, Creator-Centric Internet
The episode culminates with a vision of an internet where creators and consumers coexist in a mutually beneficial ecosystem. By adopting on-chain platforms, the traditional gatekeepers' monopolistic control diminishes, paving the way for a decentralized, creator-first internet.
Maggie Lake [16:46]: “We're actually going to have a Cambrian explosion of people who are building on that graph and that network. It’s a new Internet that’s going to put creators, musicians, videographers, small businesses first.”
This transformation is expected to accelerate as more businesses and individuals recognize the advantages of blockchain-enabled platforms, leading to widespread adoption and a fundamental shift in how content is created, shared, and monetized.
Jesse Pollack [17:27]: “Every time a prolific writer or a local business or any of us goes on chain, we could be ushering in a new era in history where there's no gate, no wall that keeps creators from having control over their work, earning money from their fans, and growing with the community that matters most to them.”
Conclusion
"Evolving Money: Rebuilding the Creator Economy" offers a compelling exploration of how blockchain technology, through platforms like Base, Doodles, and Blackbird, can revolutionize the creator economy. By decentralizing control, enhancing transparency, and fostering direct creator-fan relationships, blockchain holds the promise of an equitable, thriving digital ecosystem where creativity is truly rewarded.
Maggie Lake [17:27]: “Thank you to Adrian Johns, Jesse Pollack and Julian Hogan. This is Evolving Money, a podcast from Coinbase and Bloomberg Media Studios.”
For creators and consumers alike, this episode underscores the potential of blockchain to redefine ownership, monetization, and community within the digital realm.
Notable Quotes:
- Jesse Pollack [07:13]: “The creator is left making whatever money the platform offers them. I estimate it's about 5%, and the platform keeps the rest.”
- Jesse Pollack [08:46]: “When it comes to things like owning my art and getting paid for it and reaching my audience, you do the exact same thing.”
- Julian Hogan [12:20]: “We're basically what a modern day cartoon franchise might look like. We make short films, we make original music.”
- Jesse Pollack [17:27]: “Every time a prolific writer or a local business or any of us goes on chain, we could be ushering in a new era in history where there's no gate, no wall that keeps creators from having control over their work, earning money from their fans, and growing with the community that matters most to them.”
This comprehensive summary encapsulates the key discussions, insights, and forward-looking conclusions presented in the episode, providing a clear understanding for those who haven't listened to the full podcast.