Web3 fan economy trends: fans are the new creators

Author: Li Jin

Source: substack

One of the most notable trends in Web3 is the rediscovery of fan culture: between fans and creators, between canon and "fanon" , and how fan labor is funded and rewarded.

This trend can be summed up in two shifts:

The divide between fans and creators is closing. Fans are exerting major influence and even co-creating original work (calling into question the meaning of "original").

Fans are creating spin-off projects with new business models and funding sources that didn't exist before.

The end result is expanded creativity on the Internet, with greater opportunity, greater financial gain, collaboration, and a sense of fulfillment.

From canon to "fanon"

In Web3, the distinction between fans and creators is gradually disappearing. Fan-created spinoffs are as widely recognized as the originals, and even created works that are officially recognized as part of their work. Inseparable from this is the fact that creators realize that fans have value in the creative process and have been more tolerant of derivative uses of their works (often opting for CC0 or "copyright-not-reserved" licenses) from the start. This aligns with my earlier point about how the future of the creator economy is a community economy where co-creation is driven and rewarded through shared ownership.

Now some examples of this:

Shibuya , an animated film, is funded through the sale of NFT producer passes. NFT holders can vote and influence the plot of each subsequent chapter of the film, earning tokens representing their share of the final film. The tight integration of fan feedback into the creative process weakens the distinction between fans and creators.

Another example is Jenkins the Valet , a Bored Ape NFT named and conceived by its owner, Tally Labs , which has signed with CAA and is now the basis for a whole new world and roadmap. Shared IP ownership leads to a spin-off from BAYC that spawns a new creative world.

BAYC holders have unlimited commercial rights to the NFTs they own, which is crucial for characters to be able - and motivated - to create derivative works and achieve great success. It's a major shift from the traditional fan world, where there's a clear line between fan work and that of original authors, where fan creation is largely seen as unsanctioned (and sometimes frowned upon) Fragments of original works of ).

Now, Tally Labs is working on a longer novel featuring the expanded Bored Ape universe, where Apes/Mutant Ape holders can submit their character stories and influence the plot, earning 50% of the net profit from the book . A key to unlocking profit sharing is that NFT holders license their IP to Tally to appear in the book, effectively binding fans to the work.

On their roadmap, there is also a metaverse project called Azurbala that will spawn more characters. Even before launch, community members shape Azurbala's story and characters, influencing the project's official roadmap and story.

A new business model created by fans

Due to the restrictions of copyright law, fan works have always been in a legal gray area in terms of profitability. Because they use content and characters from copyrighted works, most fan fiction creators have been reduced to amateurs with no business model. Various initiatives have attempted to address this, such as Amazon's Kindle Worlds, but have their own limitations.

In Web3 innovation projects, the underlying ownership of tokens provides fans with a built-in business model and incentivizes the creation of derivative products. Unlike in Web2 where fans worked for free, in Web3 fans earn the fruits of their labor through tokens: as the digitally scarce items they hold become more well-known, their value increases. Promote Jenkins the Valet through other media projects, and the price of Jenkins NFT (and other NFTs in the BAYC universe) will increase, allowing fans and original creators to obtain value.

We're also seeing this happening in the broader social token space and in other NFT categories like music, where token ownership incentivizes fans to change from passive consumers to active participants and communicators as they It is closely related to the success of the work.

Cultivate shared strengths

In terms of fan funding, projects with treasuries can fund fan works, further promoting the growth of their IP. Nouns ’ 27K ETH treasury (more than $45 million) was established by selling more than 400 NFTs in more than a year. It is essentially a Nouns-focused fund dedicated to spreading Nouns-related IP projects.

It would be like JK Rowling taking a portion of her earnings to fund fan fiction authors who use her characters - something unheard of in the traditional media world. The theory is that the underlying scarcity of the original NFT series could allow it to gain value as the character universe grows in recognition and popularity.

All in all, new Web3 innovation projects are disrupting the media creation paradigm: communities are forming around nascent ideas, writing their own stories, and disseminating them to communities of shared interest and then to wider audiences. Fans become creators, and their own fans become creators, resulting in a diverse creative portfolio, all driven by native business models and new funding mechanisms. Hopefully the end result is a democratization of storytelling and creativity for all.