NFTs, Social Tokens, DAOs+Books- Upgrading The Publishing Space
Using the power of smart contracts, NFTs, DAOs, and even Social Tokens, book publishing could be decentralized and therefore, changed for the better. Here, I make further in-roads into how.
In my last post on NFTs+Books, I introduced the idea of how NFTs could revolutionize traditional book publishing for the better. Now I’d like to expand upon that by examining how book marketing could be improved through crypto-native mechanisms. Admittedly, making decentralized book marketing the norm will take time but certain existing structures such as smart contracts, NFTs, and DAOs point the way to how such a paradigm shift might be engineered. Below, I introduce those elements and the parts they would likely play in that process.
What’s wrong with book publishing?(Hint: Dinosaurs Reign)
Today, the only real, remaining selling points for traditional publishers are their industry connections and their ability to use those connections to market books swiftly and efficiently. It’s these two selling points, in particular, that hold self-publishing and even decentralized publishing back today, from truly sinking traditional publishers.
Because they’re able to spend a fortune(in theory) on Facebook ads, Youtube ads, Google ads, conference appearances, and just about every other way of raising awareness for their books that you can imagine, large publishers such as Random House, are still able to gouge authors for 80–90% of their revenue.
For that to change, a better, proven-to-be effective form of book marketing needs to be developed. To do that, we need to enter the crypto world and examine the three-fold potential of smart contracts, NFTs, and DAOs, including how they can be combined to bring about a decentralized business model to truly disrupt the book publishing space.
Smart Contracts: There’s a function for that
When smart contracts rocketed onto the scene with the launch of the Ethereum network, it was finally possible to launch decentralized applications. In case you’re not familiar with either term, just imagine conditional software. Everything from the creation of crypto tokens, to the management of their movements, to even the issuance and shipping of physical items once NFTs are bought can be managed by smart contracts, as long as the code they run on is soundly structured. Moreover, all of these examples are only the first level of the house that represents everything smart contracts can do. I truly believe that over the next decade, we’ll begin to see an ocean of new examples of their application in practice. For now, however, it’s the above foundational examples that begin to lead us to an understanding of how the publishing industry might be decentralized.
From Smart Contracts to Social Tokens
Now that the gates are open, let’s truly get down to brass tacks. Have you heard of social tokens yet? If not, head here where I’ve already penned a primer to them. On a technical level, however, social tokens usually take the same form that most cryptocurrencies do, i.e., ERC-721 tokens.
Their differentiation lies in the fact that they represent exclusive access to a person or brand’s works. Think of buying a social token like choosing to support a person or brand’s Patreon and Kickstarter at the same time, while benefiting from early exposure to all of the growth that may or may not accrue to the token itself. Simultaneously, in an ideal situation, those who buy a community’s social token should be seen as lending a hand towards its’ future ventures and getting first dibs on them before everyone else. All in all, the possibilities for social tokens are endless and we’re in the equivalent of the earliest hours of the dot-com boom with regards to their progress.
From Social Tokens to DAOs
Just as NFTs are currently booming as tickets to future DAOs, social tokens can serve the same purpose. The former, however, are not mutually exchangeable as Bitcoin, Ether, or other cryptocurrencies are, while the latter work in the same fashion. Consider, for example, a well-known Sci-Fi writer with 10,000 followers and multiple books that have sold well, who then creates 10,000 tokens to give his existing followers access to a Discord where they can learn about future works as well as have exclusive access to him. This new community could become a DAO and that DAO could become a hybrid Patreon/Publisher/Kickstarter if its members are able to coordinate to make it so. With this question of coordination, of course, comes the question of regulation, which as everyone in crypto knows, is very much an ongoing battle. As I sit here thinking about my time in the space and all of the projects I’ve seen rise up, it’s clear to me that someone will need to take the plunge and create a truly novel structure such as the hybrid I’ve just suggested and actively seek to do so in connection with regulators. A good way to affect lasting change is to emphasize cooperation but head off stifling responses to innovation with education. So when we go to governmental agencies, we go with an openness to working together, but a firmness that we won’t settle for being simply placed in antiquated boxes. With this, it should be clear that I’m not for breaking laws blatantly and avoiding working with regulators. That’s just not who I am.
What I am for is keeping the flame of innovation alive that is the bedrock of this industry. We need better and right now, all of us are the pioneers that can help make that happen.
From DAOs to…..?
Now, the rubber truly meets the road. With all of the above in mind, we can begin to imagine what sort of structure future book publishers might fall under and consequently, where book marketing should go. However, for either of those shifts to happen, someone needs to take the first step. That will eventually mean building a bonafide publishing DAO with enough capital behind it and enough authors, editors, and even literary agents involved in it to threaten the status quo.
In my mind, though, we need the right picks and shovels before we can reach that gold. Someone needs to step forward and work with regulators so publishers and the world see that crypto isn’t just an iconoclastic space destined to live on the edge. If you think of a publishing DAO as a social network, then someone needs to be the Myspace, and keep in mind that we don’t just need these structures for well-known writers, we need them for all creatives.
DAOs, whether they are social token gated, NFT-gated, ETH gated, or something else entirely, are the crux of the future of everything.
Where does all of this leave us?
As I’ve said before, because true scarcity has been the catalyst behind every other NFT movement, I expect it to be the same for books and written content as a whole. From there, other business models will develop for writers that are inspired by it, such as “social tokens,” which could give fans unique access to their favorite writers through meet-and-greets, signings, and even dedicated pieces that they request.
If you ask me, the sky’s the limit.
Keep your eyes peeled on NFTs for the long-term, because like Bitcoin and all other cryptocurrencies, they’ll experience bear markets, but they’ve already shown their staying power. With regards to my analysis of the effect of NFTs on publishing, this is still only the tip of the iceberg. Over time, I aim to shift even more to my fledgling newsletter. For now, however, remember that you can and should reach out to me anytime on Twitter, where I’m always available, and keep in mind that the crypto revolution goes beyond just money.
It’s about the decentralization of not just the financial system, but every space that’s riddled with middlemen and the inefficiences that come with them.
There’s a lot more to come.
As always, feel free to reach out to me about your answer and more via Twitter, and stay tuned for next time! Finally, most of my free time is now being taken up with my newsletter, which is completely free and focused on how the rise of the Metaverse improves things for everyone. Sub here.
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Disclaimer: I do not aim to garner any investment for the project from my efforts and no one should make any investment decisions based on what I write. All of my content is purely educational. Do not treat this post as an inducement to buy any sort of NFT. In a day and age where you can never tell who isn’t just shilling their personal portfolios, this has to be said. Always do your own research before you put any financial resources on the line for anything.
I also consult with several NFT-focused firms/projects now and am always looking to hear about more. If you’re launching a startup with NFTs and are looking for a strategy/content consultant, email me at: blockdemiclab@protonmail.ch.
