How NFPrompt Uses Web3 Technology to Reshape the AIGC Creator Economy?

1. Driven by the Internet and AIGC technology, the creator economy has experienced significant growth, providing creators with diverse income methods ranging from advertising revenue to direct sales.
2. AIGC projects open to the public such as DALL-E 3, Midjourney, and Stable Diffusion are outstanding in AI painting applications. For the creator economy, the introduction of AIGC has improved the efficiency and creative freedom of content creation.
3. Although the creator economy faces challenges such as copyright issues and unstable income, the integration of Web3 provides new solutions, especially strengthening copyright management and work monetization.
4. NFPrompt, as an emerging platform that combines Web3 and AIGC, provides creators with a unified environment for creation, trading and social interaction. NFPrompt brings wider exposure and participation opportunities to the project by joining the Binance LaunchPool for the initial public offering of the $NFP token.
5. In the future, with the evolution of AIGC and blockchain technology, it is expected that the creator economy will be more diverse and inclusive, providing more opportunities and freedom to creators and consumers.

1. The creator economy has come a long way

1.1 The Internet kicks off the creator economy

The creator economy refers to a new economic model that allows creators to earn income by creating digital content with the assistance of Internet platforms. Driven by the Internet wave, the creator economy has become a crucial part of the global economy. Especially with the emergence of artificial intelligence generated content (AIGC) and Web3 technology, this field is undergoing unprecedented changes. Today, the market size of the creator economy has reached unprecedented heights. According to estimates by Goldman Sachs’ research team, the compound annual growth rate of the world’s 50 million creators will reach 10% to 20% in the next five years, and the global total is expected to exceed US$500 billion by 2027. AIGC brought about by technological breakthroughs has opened up new avenues for content creation. This growth is driven by advances in digitization and globalization, which allow creators to reach a wider audience and earn revenue in a variety of ways, including advertising revenue, sponsorships, merchandise sales, subscription services, etc.

The creator economy can be traced back to the rise of blogs and social media sites in the early Internet era. At that time, content creators began to use these emerging platforms to share their ideas, works and life experiences. The creator economy has experienced significant growth over time. Early blogging and social media platforms, such as MySpace and YouTube, gave individuals a space to express and share, as well as the possibility of generating income. YouTube’s partner program is a key symbol of the early implementation of the creator economy, which incentivizes content creation by allowing video creators to earn advertising revenue through their videos.

Youtube marks a new era of the internet’s creator economy

As time enters the 21st century, with the popularity of social media and the increase in the use of smartphones, more mobile platforms have emerged, such as Instagram, TikTok and Snapchat, which are popular on mobile devices, providing creators with more diverse ways to express their ideas, and ways to make money. At the same time, the creation of crowdfunding platforms such as Kickstarter and Patreon has provided creators with diversified income streams, including selling products and services directly to fans through content, as well as making money through sponsorship, membership services, and copyright sales.

1.2 AI joins the game and AIGC technology rises

In the 21st century, the rapid revolution of AI technology has brought about a series of innovative applications, which has greatly affected the creator economy. These applications include intelligent content recognition for evaluating the quality of content as well as intelligent system recommendation for optimizing content production and demand matching. Especially in 2022, this year officially becomes the first year of AIGC with the advent of a number of image AIGC (artificial intelligence generated content) products, such as DALL·E 2, Stable Diffusion, Imagen and Midjourney, as well as the all-round assistant tool ChatGPT launched at the end of the year. The birth of AIGC technology marks the gradual growth of AI to its more advanced forms, and for the creator economy, AIGC’s efficient, close-to-human-level logic and content generation capabilities have opened up a new development path for the creator group.

AIGC can efficiently generate design content with various styles

The core technology of AIGC (artificial intelligence generated content) is mainly based on the Transformer model, an efficient algorithm pre-trained on massive data for understanding and processing language or images. The general process of AIGC is to first conduct an in-depth analysis of the input Prompt (ie, instruction or concept). This step is usually completed by a large model of language or image (GPT series, BERT series, CLIP series, etc.); then the diffusion model is used to complete the final generation of high-quality images by utilizing the principle of retrograde calculation of Gaussian blur. Along with the craze of AIGC, there are an endless stream of AIGC applications emerging on the market. However, the most prominent ones in AI painting applications are still the earliest released old projects: DALLE 3, Midjourney and Stable Diffusion, which are recognized for their excellent performance. The build quality stands out. (In fact, there is also a self-developed product called Imagen by Google. However, Google adheres to the closed source style in the past. Outsiders can only learn about its clues from other products launched by Google and various academic papers published. This shows the negative impact of the monopoly of centralized institutions, but this is another topic.) Back to the topic, the figure below shows the different results generated by three products on the market when receiving the same Prompt. It can be seen that MidJourney 5.2 has the best generation results. It not only generates the scene perfectly according to the description of Prompt, but also adds a lot of details to the scene. The quality of the generation result of Dall-E 3 ranks second, but it is also generated exactly as described by Prompt. Stable Diffusion has the worst results and does not generate the appearance style of “anime girl”. This may be caused by the characteristics of its open source project, which results in a scale shortage of training data it uses.

Prompt: Anime girl with orange hair looking at tv looking at her favorite show.

The same prompt has different results in different applications.

Generally speaking, AIGC’s technology is still at the stage of assisting human creators in their creation. The hot topic on the market is how to cleverly design prompts to achieve more optimized generation effects. Thinking from another perspective, this is also a manifestation of the early stage of AIGC technology. In the future, AIGC products are expected to achieve more creative freedom. With only the minimum standard prompt input, high-quality generated content can be generated according to different scenarios. As AIGC technology continues to develop, it will be increasingly integrated into the daily workflow of creators, and its role in the creator economy will become increasingly significant. This technology not only improves the efficiency of content creation, but also endows creators with unprecedented freedom and brings them new creative forms.

1.3 Difficulties and opportunities of the creator economy

It is true that the integration of AIGC has brought huge opportunities to the creator economy, but we have to admit that the creator economy still faces many new and old challenges at this stage. For example, income is affected by centralized platforms, copyright issues are caused by generated content, there are difficulties in maintaining the long-term influence of created content, and there are potential risks brought by the inexplicability of AI, etc.

First, for many creators, especially individuals or small studios, their income is highly dependent on centralized platforms to publish and promote their works. Because many creators rely on project work or unstable advertising revenue, their income is easily affected by changes in platform policies. For example, vloggers and influencers who rely on advertising revenue and sponsorships from traditional platforms like YouTube or Tiktok often have their income closely tied to views. However, due to changes in centralized platform policies or algorithms, their videos may suddenly lose exposure, resulting in a significant drop in revenue. This dependency also further weakens creators’ creative freedom and ability to monetize it.

YouTube’s AdSense system allows creators to receive a proportional share of ad revenue

Secondly, in the digital age, content is extremely easy to copy and disseminate, which poses major copyright protection challenges for creators. Especially without a clear copyright statement, their works can easily be used or stolen by others without permission. For example, the work of photographers, illustrators, and music producers may be used for commercial purposes without their permission, and they often lack sufficient resources when trying to safeguard their copyright interests. This problem is particularly acute in the field of AIGC, as determining the originality and attribution of content created by artificial intelligence is a complex and expensive task. In addition, regulation in this emerging field is still immature, which may lead to market uncertainty and risk. However, these challenges have also given rise to new business models and innovative opportunities, such as using blockchain technology to track and manage copyright.

Fuse Remix Video that went viral on Tiktok

What mentioned above gave full play to the unlimited creativity of the people, but also became a “copyright lawyer’s nightmare”.

Furthermore, in the current creator economy, if you want to maintain the long-term influence of the creator, what is indispensable is to obtain the support of a large number of fans. However, building and maintaining a loyal and active fan base is a long and difficult process. Fan support is often influenced by content quality, market trends and the creator’s personal brand. Additionally, fans’ preferences and interests may change over time, creating uncertainty for creators.

2. Looking for opportunities in Web3

The core of Web3 is blockchain technology and cryptocurrency. With its remarkable achievements in the financial field, it has gradually aroused the interest of more developers. They have begun to explore the application of Web3’s core technology to other fields to address long-standing problems in these fields from an unique perspective. The creator economy sector is also actively responding to this trend. Especially driven by AIGC (artificial intelligence generated content) technology, the combination of Web3 and the creator economic model has brought a new dimension of thinking to this field. The most direct change is that through smart contracts and non-fungible tokens (NFT), creators can now more easily control the copyright of their works and conduct monetization operations. NFTs in particular play a key role in ensuring the transparency and simplicity of copyright, ownership and transfer processes for digital artworks, which is particularly important for AIGC-generated content. The application of these technologies not only provides new revenue channels for creators, but also reduces their dependence on traditional intermediary platforms.

2.1 Create an all-in-one Web3 platform for creators

Driven by the mission of facilitating the creator economy and promoting the integration of Web3 and AIGC, the NFPrompt project (hereinafter referred to as the NFP project) follows the community-led development idea and establishes an all-in-one Web3 platform integrating creation, trading and social contact. With the latest blockchain and AI technology, NFP focuses on lowering user barriers and empowering user creation, allowing new users to quickly and easily get started and produce high-quality content within 30 seconds, and convert these contents into NFT (non-fungible tokens), thereby establishing their digital copyright and ownership. The NFP project proposes to convert Prompt, the core of creation in the current large-model environment, into NFT, creating a unique creative process, social environment, and profit space. As of the time of writing, the NFPrompt project has attracted over 180,000 creators to register, and more than one million NFTs are ready to be minted. It is well-deserved as the leading project under the Web3 x AIGC track.

The NFPrompt project has attracted a large number of users and traffic

Simple and intuitive UI design of creation interface

-Core functions of the platform

On NFP, the core of the user experience is ultimate simplicity and innovation. Users only need to register with an ordinary email or Web3 wallet and enter a prompt (command or creative concept). The platform’s system can quickly generate corresponding content (covering text, images, audio and other forms) using the latest AI models (including DALLE 3, Stable Diffusion and Midjourney V5). The generated content can be flexibly presented based on user needs, whether as stand-alone artwork, commercial advertising content, or personalized social media posts. This feature greatly streamlines the creative process, especially for those creators who may lack specific skills or resources, lowering the barrier to entry and providing unprecedented convenience and efficiency.

Four interactions between users and NFP products: registration, creation, casting, and transaction

NFP is more than just a content generation tool, it also provides users with a path to convert created content into economic value. Platform users can mint their own generated content into NFTs and trade them on the platform’s built-in marketplace. Not only does this enable creators to create unique and valuable works, it also leverages blockchain technology to ensure their digital copyrights are protected and to receive financial rewards directly on their creative labor. Furthermore, thanks to the high-performance technology architecture of opBNB used by NFP, NFP provides creators with an extremely cost-effective creation environment: the creation cost of each NFT is as low as a few cents, which is an attractive advantage for cost-sensitive small teams or individual creators.

Gas fees for user transactions dropped from $0.3 to $0.01 thanks to opBNB

-Creator community and interaction

Going further, NFP has also established a vibrant community that encourages communication and cooperation between NFT content creators, as well as between creators and the audiences of their works. Here, users can freely share their creations, obtain valuable feedback, and have the opportunity to join forces with other creators to create new works and increase the impact of their creative content. By regularly holding various themed activities and creative competitions, the community not only inspires creative inspiration, but also provides a stage for users to showcase their talents and gain recognition. At the same time, NFP has also specially introduced a “Credit System” and corresponding voting mechanism. Through these mechanisms, users can earn points and tokens, and use these rewards to purchase the works of other creators or increase the visibility of their own works. These functions make NFP a comprehensive economic ecosystem for creators, which not only gives support to the artistic pursuits of creators, but also provides new income opportunities.

The project team will regularly hold various content creative activities

2.2 $NFP is listed on Binance through LaunchPool, and the latest Tokenomic is released at the same time

On December 19, 2023, the $NFP project officially announced that it will conduct an initial token offering by participating in the Binance LaunchPool. According to the latest Tokenomic released together, a total of 1 billion $NFP tokens are planned to be minted, of which 11% will be first distributed by Binance LaunchPool. Referring to the average project market value of Binance LaunchPool of 220 million U.S. dollars, and the 350 million U.S. dollars in market cap of Fusionist (ACE), the last project of Binance LaunchPool, we can roughly estimate the value of $NFP project: the expected opening price is $1.3 to $1.7, the annualized income is 60 % - 160%, and the 7-day risk-free return is 1% - 3.42%. Besides, it will cost about $0.4-$0.6 to borrow BNB to obtain a single NFP.

The average market value of Binance LaunchPool’s historical projects is approximately $220 million

Source: ChainBroker

According to this valuation, it will be 20% - 40% higher than the expected return rate of Fusionist (ACE), the last LaunchPool token issuance project. Of course, this includes the fact that ACE’s LaunchPool allocated a relatively small share of tokens and the factors such as higher interest rates for lending and borrowing staked tokens.

In addition to the 11% share of Binance LaunchPool, token allocation also include: initial airdrop, grants for the team and investors, as well as grants for short-term growth fund and long-term financial fund. The allocation ratio is as shown in the table below. Notable among them are:

1. The design of this token issuance model follows the fair launch model used by the currently popular Bitcoin Inscription project. This model gives ordinary investors and banker institutions the opportunity to compete on the same stage, which is quite a legacy of ancient cryptography. .
2. In addition to making fairness possible in the initial launch, subsequent token issuance aims to maintain consistent fairness principles. While ensuring that tokens are fairly distributed to all contributors to the token economic model, it also ensures healthy competition within the system and stimulates healthy growth of the ecosystem within the system.
3. In the early stages, the proportion of chips held by large investors and investors has been reduced compared to that of the early design. More tokens will gradually be distributed to community creators, and “no investors will be left flat.” At the same time, the team is committed to building long-term projects and actively extends the team token vesting period: tokens for both team and investors are released in 1 year and linearly unlocked in 5 years.
4. Accounting for 27% of the total, the long-term financial fund is subject to public supervision and voting, which actually reduces the project’s token circulation and is conducive to long-term value construction.

Distribution ratio of $NFP tokens

The vesting schedule of $NFP tokens is as shown in the figure below, in which the shares of Binance LaunchPool and the initial airdrop are all unlocked immediately, and the shares allocated to the team and investors begin to linearly unlock in Q4 2024 after a one-year lock-up period. The rest will be unlocked linearly starting from Q4 in 2023.

Unlocking schedule for $NFP tokens

Finally, as the native token of the NFP project, $NFP is also endowed with various functions including uses as fee payment, community governance, staking income, receiving airdrops, and community influence. These functions will also be gradually implemented as the project is updated, aiming to be launched in Q4 of 2023.

2.3 New features to be expected

In addition to frequently cooperating with other projects to organize creative activities for project promotion, the project team is also actively preparing for subsequent updates of NFP products to further attract users. The main goals of the subsequent roadmap are as follows. The core concept is to further enable users to monetize their imagination and influence through creation.

2023 Q4:

1. SocialFi: Social gaming and user stratification mechanisms will be established to enable key opinion leaders (KOLs) to enhance their business influence through boutique series.
2. Market or community activities on the opBNB platform.
3. The staking mechanism in token economics: allowing users to obtain rewards or participate in project governance by staking tokens.

2024 Q1：

1. The NFP Creator Foundation was established to promote the commercialization of NFT. The foundation will purchase popular NFT series voted by the community.
2. Establishing partnerships with commercial clients, including establishing partnerships with prominent artificial intelligence companies and expanding collaborations with Web2’s well-known retail and cultural brands.
3. Provided advanced users with more AI models and tools for creating custom art as a paid service.
4. Launched an official NFT series that binds platform rights.

2024 Q2：

1. NFP AI Foundation: Contribute to cutting-edge generative AI research in the field of scientific research.
2. Expand in emerging countries, providing easier access and friendly mobile user experience for mass user adoption and growth.

It is worth mentioning the new SocialFi features planned to be launched in Q4 2023:

1. Following the success of SocialFi’s new paradigm Friend.tech, the NFP project plans to launch a new feature that integrates user accounts with the pricing mechanism for the content they create. This mechanism analyzes the popularity and supply of the product and prices the work based on a preset price curve. In addition, each NFP work will have an embedded chat channel designed to build a direct communication bridge between creators and collectors. This initiative will enhance the influence of creative content while providing effective feedback channels for creators to improve creative efficiency and quality.

Friend.Tech: The key bound to each account is priced according to the price curve (the more people buy, the higher the price)

After purchasing, you can enter an exclusive chat room where you can communicate directly with the account owner.

1. A future update to this feature is that on the NFP community platform, the share volume of creative content will directly affect its trend index and final pricing. Higher sharing rates mean increased visibility and popularity of the work, potentially increasing its final market price. This mechanism encourages creators to not only create high-quality content, but also actively share it to increase the exposure and value of their works.

3. A new journey of the creator economy

As a pioneer application that implements Web3 and AIGC technologies, NFPrompt demonstrates how to empower creators through technological innovation, thereby opening up new income channels and bringing important enlightenment to the future growth of the entire creator economy. The platform begins to impact the field. This not only marks that the creator economy will go beyond the traditional creation and trading environment, but also demonstrates that the market is optimistic about the evolution of AIGC x Web 3 in the creator economy in the long run after its successful launch on Binance LaunchPool. Long term bullish.

Looking to the future, Web3 and AIGC will continue to promote the development of the creator economy, and the AI ​​track in the Web3 field is also drawing the attention of more and more investors. As these technologies mature and become more widely used, we can expect to see the creation of more innovative application cases. For example, AI technology may develop further to create more complex and personalized content. At the same time, with the popularization of blockchain technology, more creators will be able to directly benefit from their works without relying on third-party platforms.

In summary, the AIGC creator economy in the Web3 era is growing rapidly, bringing unprecedented opportunities and challenges. As technology advances and the market adapts to the changes, the future creator economy will be more prosperous and diversified, which will bring more freedom and opportunities to creators, while also providing consumers with richer digital content.

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