This article was first published on Stories by Theta Labs on Medium
One of the most promising applications of blockchain technology is the potential to democratize and decentralize finance (“DeFi”) and crowdfunding in a wide variety of forms. For Theta, we’re excited about innovative ways that Theta blockchain could be used to more effectively seed streamers and content creators, by allowing fans and viewers to fund streamers in trustless and autonomous ways. This addresses one of the biggest challenges we see in the market today, namely, small and mid-size streamers and content creators on platforms like Twitch, YouTube and TikTok have to grind their way up to reasonable earnings. To make it worse, these creators often have to put up their own savings and potentially lose income by quitting their day jobs.
With EVM-compatible smart contract support coming soon to Theta mainnet, new use cases can be enabled on Theta via common DeFi tools like lending, stablecoins, and AMM DEXs (automated market maker decentralized exchanges). With these tools, users can create smart contracts that allow decentralized funding of content creators. Picture a mid-size streamer just getting started, with great content but a following that’s not sustainable yet. Early backers could seed this new streamer TFUEL to help them fund initial expenses, and in return receive a share of the TFUEL the streamer earns via THETA.tv or another Theta-enabled platform. This could be done entirely via smart contracts, so for example, if you and a streamer agreed to a certain amount of funding for 30% of their next year’s TFUEL earnings, this could be done in a fully trustless and transparent way since Theta blockchain natively supports TFUEL earning splits at the protocol level. A group of users and other stakeholders like Theta Labs could even make the process systematic by creating a DAO (decentralized autonomous organization) that allows them to pool tokens ...
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Stories by Theta Labs on Medium