The creator economy landscape is rapidly evolving, with platforms and companies vying to support independent creators in monetizing their work and achieving financial stability.
Joining the fray is Web3 startup Matera, which aims to address the monetization challenges prevalent in the creator economy by bridging the gap between Web2 and Web3 platforms.
“No web3 SocialFi has reached major adoption because they underestimate the network effects of web2 platforms,” Matera CEO Sam Huber said in a Monday (April 29) press release.
Huber added: “Even if they get better economics, the switching costs are too high for creators to start building an audience from scratch on a new platform. Matera as a bridge, enabling users to benefit from the scale of web2 and the economics of web3, [solves] this dilemma.”
Basically, Matera seamlessly integrates with established social networks, offering creators liquidity through its DeFi ecosystem. By analyzing engagement metrics, Matera computes a “Matera Credit score,” enabling creators to exchange this score for liquidity and rewards within its decentralized financial ecosystem. This ecosystem is purposefully designed to foster collaborations with other DeFi projects, enhancing the benefits for creators.
Matera supports X and plans to integrate other social platforms, including Instagram and TikTok, to amplify its impact within the creator community and extend its reach to a broader audience.
In parallel, social media giants like TikTok have introduced their own monetization initiatives, exemplified by the Creator Rewards Program. This program compensates creators for engaging original content, with the aim of fostering a culture of creativity and innovation within the platform’s ecosystem.
Beyond content monetization, companies like Bump are emerging to address the financial needs of independent creators, recognizing the unique challenges they face in accessing financing due to the unpredictable nature of their income.
“Access to business loans and lines of credit are virtually nonexistent,” James Jones, founder and CEO at Bump, told PYMNTS in a recent interview. “Most creators are denied access because they don’t have paystubs or W2s, or because their income is just too unpredictable for traditional institutions with very little appetite for risk.”
Bump aims to bridge this gap by providing tailored financial solutions that leverage creators’ income and real-time market value. Through features like income discovery software and real-time market value assessments, creators can manage their finances more effectively and negotiate fair compensation for their work, Jones explained.
Additionally, the Bump Creator Credit Card and direct deposit accounts offer secure placement of creators’ royalties and payouts, allowing them to earn interest on idle cash and maximize the value of their earnings in the long run.
“[Our goal is to] help facilitate the building of true wealth for creators,” Jones said.
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