On Psychology of Money chapter 6 - Tails, You Win - Morgan Housel shares an anecdote about an Art Dealer that bought Picasso paintings early on and they ended up being worth a fortune years later. He then proposes a reflection, as Art is one of the most subjective areas, how could one Dealer successfully foresee and collect an art collection that would be one of the most valuable masterpieces in the future?
Is it skill, is it luck or is that these successful collectors buy such a big amount of items that some of them happen to be considered masterpieces decades later. He goes on to conclude that in a lot of areas we have to deal with these longtail events that have huge influence on outcomes. Art Dealers, Index Funds, Venture Capitalists are a few examples of how how 1% of their investments or portfolio can be responsible for generating 99% of their wealth.
The Creator Economy is the business or economic model centered around Creators, they monetize themselves or their projects to their communities. Web2 was responsible for making creation and monetization easily accessible to the masses. The integration with the cryptoeconomy, that is starting to happen now, takes Creators to the next level, they can truly own their art, build an economy around their projects and community, maximizing the value of their own projects.
Dev Protocol, the Creator and the Cryptoeconomy permalink
Dev Protocol introduces creators to the cryptoeconomy in a easy way, they can receive sustainable funding through the stakes social dapp, both Creators and Stakers get rewarded (currently about 30% APY). Since projects that provide more benefits or perks to their Patrons also receive more funding and support, Creators should think about how use the Symbiotic design of Dev Protocol on their favor.
Tokenization is the biggest overlooked part of Dev Protocol, onboarded Creators get to mint their own tokens and can design their own economy using them increasing the value of their projects. Not many Creators have used this huge power they have in their hands, the few who have, are attracting a lot of Patrons and growing, ScytheSwap and HiDE are examples of this.
Just like successful Art Dealers collect a lot of different arts, Dev Protocol is onboarding all kinds of Creators, projects are listed and the DEV Treasury gets a 5% share of the tokens of all onboarded projects. Over the time, with competition, creators will have more incentive to give back to their stakers and community, and by developing their own economy with their tokens is the best way to do that.
Art Dealers and their Investors are the ones taking that financial risk, on Dev Protocol, Stakers are essential for the funding of the projects, since they are the Patrons and they are also the ones taking the risk of investing on a volatile token in the first stages and get rewarded with a high APY, in the near future, Creators competing with each other will bring more benefits to stakers and potentially attract more Patrons.
These few projects that become valuable will be responsible for bringing further value to the DEV token - the token these projects are funded with on stakes.social. Dev Protocol is not limited by resources and trust like Art Dealers are, through the power of blockchain the DEV DAO will be able to onboard a huge amount of Creators of different markets, with no cost but the Risk that Stakers and the Dev Protocol Team are taking.
With this design, Dev Protocol can play the longtail game better than any successful Art Dealer, with a near infinite number of Creators that can be onboarded, guarantees that in the future, if DEV plays its cards right, it will capture the value of the Creator Economy, with many 'masterpieces' on its Treasury. Every Project, Creator and Staker that believe in this future will have the chance to accumulate a share of everything by holding the DEV token.