Patreon Exploring Crypto for Creator Earnings | News
Patreon's Exploration of Cryptocurrency and NFTs
Jack Conte, CEO and co-founder of Patreon, and Julian Gutman, Chief Product Officer, recently discussed the platform’s potential integration with cryptocurrency during a panel at The Information’s 2021 Creator Economy Summit.
The Potential of NFTs and Creator Coins
Gutman acknowledged the significant advancements occurring within the crypto and NFT space. He noted the evolving art and precious goods markets, while expressing uncertainty about the long-term sustainability of current pricing trends. However, he highlighted the fundamental technological benefits of NFTs as a means for creators to monetize their work and benefit from secondary sales.
Patreon previously introduced the concept of creator coins to its community through a Creator Policy Engagement Program livestream. This discussion, however, was somewhat overshadowed by immediate concerns regarding new Mastercard standards for adult content.
Current Policy Restrictions
Laurent Crenshaw, Patreon’s head of Policy, clarified that the platform is not currently considering an initial coin offering, as this is prohibited by existing guidelines. Nevertheless, Patreon is open to exploring the possibility of allowing creators to offer exclusive memberships and benefits through digital tokens, representing fan club membership.
Currently, Patreon permits creators to share investment-related experiences, but prohibits the use of coins for direct financial gain, investment schemes, or incentives to purchase cryptocurrency. Policy changes are possible if creator interest warrants them.
Understanding Creator Coins
A creator coin functions as a crypto-based social currency. Companies like BitClout, Roll, and Rally are developing individual tokens that allow fans to invest in a creator’s success. Early investment in a creator’s token could yield benefits if the creator gains prominence.
Focus on Sustainable Creator Earnings
Gutman emphasized Patreon’s commitment to fostering a sustainable, long-term income stream for creators. He stated that the platform is evaluating how NFTs and related technologies can contribute to this goal. While acknowledging the hype surrounding individual asset sales, Patreon prioritizes ensuring a stable, recurring revenue model for creators.
Ownership and Creator Empowerment
Crypto initiatives are increasingly focused on granting creators greater control over their work. For example, artists can continue to receive royalties on NFT sales, unlike traditional fine art transactions.
Conte expressed enthusiasm for the potential of crypto and NFTs to empower creators. He highlighted the benefits of creators owning their media, controlling their audience data, and gaining independence from larger institutions. He believes this technology represents a shift of power towards individual creative individuals.
Creator Concerns and Environmental Impact
Despite the potential benefits, some creators expressed reservations about Patreon’s exploration of cryptocurrency. Concerns were primarily centered around the environmental impact of crypto and its negative reputation within artist communities.
One creator voiced concerns about potentially losing patrons who disagree with Patreon’s involvement with crypto, even if it offers apparent advantages.
Internal Development
When questioned by panel moderator Laura Mandaro of The Information, Conte declined to comment on whether Patreon has dedicated employees working on crypto-related projects, simply stating that the company is “thinking about it.”
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