What is Create to Earn (C2E)?
20 September 2021
A New Decentralized Creator Economy
What is Create to Earn (C2E)? C2E is a new decentralized economy on top of the Play to Earn (P2E) business model - endorsed by popular NFT game Axie Infinity.
With the proliferation of blockchain and crypto technology, new economic models for games are starting to emerge. While players earn crypto rewards by playing exciting games under the P2E model, within the Create To Earn (C2E) model, participants can produce contents, followed by minting their own contents into NFTs to use and monetize in the ecosystem. Thereby, you can make an alternative stream of income without putting extra effort in creating content!
What is Play to Earn (P2E)?
The rise of the ‘Pokemon-style' NFT game Axie Infinity introduces the P2E model to the world. Millions of gamers are winning battles and completing daily quests with their Axie monsters to earn the virtual currency—Smooth Love Potion (SLP) tokens. They can also ‘breed' new Axie NFTs, and sell them to other players for profit.
In other words, the P2E model allows people to earn income by playing games along with trading NFTs.
The P2E model takes off with the surge in popularity of Axie Infinity in developing countries. People can often earn more playing by Axie Infinity and selling in-game tokens in comparison to a minimum wage job..
In addition, it is driving a new decentralized economy around the world, which has been hit hard by the pandemic. In some countries, users can convert their cryptocurrencies for fiat currencies via online platforms. Finally, a number of local merchants are widely starting to adopt cryptocurrency as a form of payment.
What's Next: Create to Earn (C2E)
C2E is extending an extra step further from the P2E model. Within the model, participants can produce their own content, mint the content into NFTs to use and monetize in the ecosystem.
Both P2E and C2E models emphasize financial benefits to users and players. Yet, under the C2E model, you can design and create your own content, upload to the platform, and mint NFT for sale.
The biggest difference between C2E and P2E is that within the P2E model, players have to accept and use the in-game assets released by the game developers or smart contracts. This limits individuals' ability to fully realize their value generated through gameplay and engagement.
Just as Roblox has revolutionized traditional gaming, the C2E model will further disrupt traditional social media, and further beyond the blockchain ecosystem.
With the unique, immutable NFTs, the C2E model is truly empowering creative expression in the digital and blockchain world. The C2E model gives power back to individuals by facilitating the creation and ownership of digital collectibles.
Platforms with the C2E model offer you new ways for transforming your social media presence and creativity into another means of stream income.
Creators can post exclusive content through the platform in the form of NFT in ease. Also, they can associate perks with the NFTs (e.g.: an exclusive meeting, a crypto trading skill workshop, etc...). This allows their fans and users to bid on the marketplace for the NFTs. Then, both the NFT owner and creator will earn a split of the rewards over time.
The combination of games and DeFi produces "Play to Earn", a model with financial mechanisms for gaming assets. Now, the mix of content, NFT minting, and DeFi delivers "Create to Earn", an innovative way to attract interesting mediums to the ecosystem with financial incentives and value creation. Create enjoyable content, and get rewards for your knowledge, skills, creativity, and time!
What Are They Creating?
The C2E model deeply ties the users' income to their creativity! It delivers a gold mine for creatives who are looking for a passive income stream.
For creators, you can upload a wide variety of content and mint NFT for sale. As the tradeable collectibles, NFTs can represent anything like images, animated GIFs, videos, music, in-game items, text, memes, code and even real world items.
So, instead of solely focusing on NFTs, you can create content freely, share it with your friends and audience, and get rewards based on engagement.
The best thing about Create to Earn? You don't have to become an influencer with a million followers to make this work.
With the right platform and tools, you can start making content - with even a modest social media presence. What you need to do is to make your content as interesting as possible. Furthermore, the Create to Earn model lets you monetize your content directly, transforming your creativity into a stream of passive income.
What Are Creators Earning?
Simply put, the Create to Earn model pays people to create content. With the right decentralized platforms, users can create content, mint NFTs for sale, and allow their audience to engage, access, and even earn through collecting these NFTs. Meanwhile, the creators will earn rewards in native crypto tokens of the platforms - equivalent to major cryptocurrencies - from the NFTs.
Additionally, some platforms also provide the staking feature allowing users to to stake crypto tokens on their favorite creators' profiles. Over time, the NFT owners, as well as the creators, will both earn a split of the crypto token rewards from the staking pools. The more active the creator is, the higher the APY, the more users will stake their tokens, the more reward.
Beyond the token staking rewards, creators, as stakers, will earn the access of the governance right on the protocols with the stake-weighted voting. As a recognition for their contributions, token holders will be able to propose and vote on development of the platform.
For creators, investors, users, and individuals, the Create to Earn model represents an unusual opportunity to get in at the ground level.
Creator-based economies may not be new. However, NFTs and blockchain technology are making these economic models reaching their full potential and to unprecedented levels.
With the Create to Earn model, creators will have more autonomy and freedom to interact and monetize their creativity however they wish. In a model that pays people to create content, creators will be able to invest, access and earn from their knowledge, skills, creativity, and time.
So the new world of NFTs is here, and it's only limited by your creativity! Thanks for reading "What is Create to Earn (C2E)? If you enjoyed this article and want to stay up to date with how you can C2E using Only1. Be sure to subscribe below!