Platforms such as YouTube and Twitch have been exploding in popularity over the past few years, so much so that YouTube, according to Alexa.com, is now the second biggest website in the world, second only to Google.
This means their most successful content creators have become Internet celebrities who, thanks to sponsored content and ads on their videos, have been making millions of dollars. According to Business Insider the top earner on YouTube in 2016, PewDiePie, made a whopping $15 million.
These platforms are full of up-and-coming celebrities who just need an opportunity to spread their wings and possibly overtake PewDiePie’s 56.7 million subscribers. To really compete, they need to buy expensive recording equipment and spend a lot of time growing their channel. This means they’ll need money to survive before making it big, so funding is holding back many content creators from chasing their dreams.
Enter Protostarr. Recognising the change in how celebrities are created, this startup allows users to invest in up-and-coming YouTube and Twitch stars, and get a part of the revenue they earn in return. Being that venture capitalists are begging for what is being dubbed “Hollywood 2.0,” this company looks to be an inevitable success.
Protostarr allows users to easily discover rising talent on popular platforms such as YouTube and Twitch who need money to purchase expensive equipment or to fund the development of their channels. The user, in return, earns a share of the channel’s earnings over time.
These earnings are distributed and calculated automatically through an Ethereum smart contract, which essentially means Protostarr is changing the current early YouTuber funding model from donation to investment.
When a user invests in his favorite content creator (dubbed “Starr”), he maintains partial ownership of the revenue creating channel and, as such, receives his share of the earnings. These are stored on the Ethereum blockchain and automatically paid to investors, and since the process is automatic, no problems arise as the often required trust is left out of the equation. The amount and number of periods a Starr agrees to pay fans and investors is negotiable.
The model benefits fans who can earn while watching their favorite content online, the rising Starr who gets funded has the opportunity to grow, and the platform itself who sees more talented creators rise and improve the quality of its content.
Speaking on how content creators currently seek funding, Joshua Gilson, Protostarr’s CEO, stated:
We’re changing the model from donations to investment. Protostarr gives fans the ability to see a real payoff for their loyalty, while investors looking for new, exciting opportunities could see payouts better than traditional investment avenues.
Starting August 13, 2017, Protostarr will issue Investors Tokens in its crowdsale, effectively allowing investors the opportunity to earn part of the income all rising Starrs will have.
Investors Tokens will allow its holders to earn a combined 2% of every Protostarr smart contract created. During the initial Power Hour, one Ether token will buy investors 170 Investor Tokens. During the first week, one Ether will be worth 150 tokens, and during the second one 130, then 110 and on the fourth one Ether will be worth 100 tokens.
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Featured image from Shutterstock.
Last modified (UTC): September 13, 2019 8:19 AM