The creator economy is booming, but many small creators are still struggling. The gap between earnings and expectations among modders, builders, and artists on platforms like Roblox, YouTube, and Twitch is huge. Creators are exploited through high fees, inconsistencies in the amount paid, and the steady change of platform algorithms. Luckily, Web3 is making gaming easier.
Web3 has introduced a new model aimed at improving the lives of creators. The model involves blockchain, NFTs, and smart contracts like Web3 games, which will ensure fair pay for work done. But is this a true solution, or would they see their expectation cut short?
What Is Broken In the Economy Of Creators?
As several creators lose revenue, other platforms are frantically generating billions in revenue. Several examples support this claim:
- YouTube: YouTube gives creators 55% of ad revenue, but this can only be achieved after they meet strict rules, like gaining enough subscribers etc.
- Twitch: Smaller platforms often end up fighting for less than half or more, making their earnings through subscriptions.
- Patreon: Most modders and developers end up without receiving anything unless they opt for donations and subscriptions.
To summarise, platforms take advantage of creators. The big platforms make billions, while creators work hard for little reward, often stuck chasing popularity instead of real money. It’s like baking a cake and only getting a slice while the shop keeps the rest.
How Web3 Games Adjust the Conditions
It is the goal of Web3 games to alleviate these concerns by providing monetary income and control to creators through
1. NFTs for Creators
Games like The Sandbox allow users to:
- Build virtual worlds or items
- Mint them as NFTs
- Sell or rent them on open marketplaces like OpenSea
Example: In 2024, The Sandbox witnessed 17 million visits during its Alpha Season 3, and creators profited from user-generated content. 300 million people interacted with user-generated content within Sandbox and 7.5 million unique wallets.
2. Royalty Via Smart Contracts
Every player in Shrapnel (a Web3 FPS game) can design maps or skins, mint them into NFTs and receive royalties perpetually every time they are utilised or exchanged. Just imagine, for the first time, Skyrim modders get compensated every time someone uses their mod, without any begging needed.
3. Community Awards and Tokens
For example, Decentraland usually pays its users MANA tokens for the creation of content and for hosting events. In addition, these tokens:
- Have value beyond the crypto-game.
- Are redeemable or sellable for fiat currency.
- Allow creators to monetise beyond mighty views.
Additional Layer: Creators Meridian and other DAOs enable the community to vote for who will be rewarded, therefore, allowing creators to be compensated by their benefactors who gain value reaped from these efforts.
4. Player-Supported Earnings
Splinterlands allows Web3 gaming streamers to run tournaments with prize pools funded by players, not companies. The Sandbox’s Game Maker Fund paid 20 Web3 gaming creators in 2024. Web3 gaming removes the platform’s big fees, letting creators keep more money.
This Web3 gaming model helps creators earn from their efforts, not from pleasing platforms.
Challenges to Overcome
Web3 gaming looks promising, but it is not perfect yet. Getting started is a bit tricky; to set up a digital wallet feels like learning a new tool with too many steps. Fees on some digital money networks can reduce earnings, though cheaper options like Polygon are improving. Scams are a serious issue here also. For example, in 2024, many Web3 gaming creators lost money to fake projects that disappeared with their investments. Also, the coins earned can lose value quickly, like a stock dropping, which makes payouts uncertain
The Evolution of the Creator Economy
Web3 games are not attempting to mend the system; rather, they are constructing a new one. This is their significance:
- Authentic Ownership: Creators retain complete control over their content and revenue.
- No Platform Cuts: Creators keep revenues instead of big tech firms.
- Monetization from Day 1: Even marginal or new creators can be compensated if their content is of value.
Concluding Remarks
Web3 games may not be fully optimised yet, but they’re certainly trying to steer the creator economy in the right direction. More creators will seek out these new technologies, especially when the infrastructure becomes readily available and regulations become more favourable.
If you are a streamer, modder, or digital creator who is done with the imposed boundaries of the platform, Web3 gaming could be your next big opportunity.
