We recently received this message in our inbox.
“Why go through all the flaky steps of tokens that have to be cashed out through some exchange? Makes it appear shaky, at best.”
This is a valid concern. It’s the standard for other platforms to pay content creators in cash. Why does Rokfin deviate by utilizing RAE Tokens?
The short answer is because we strongly believe this is better for content creators.
The long answer requires some insights into the problems that the RAE Token solves for.
Dynamic value
Content creators who join a platform early play a vital role in the growth of the platform and its network more so than content creators who join a platform after it has gained scale.
Conversely, it’s more difficult for a digital platform such as Rokfin to acquire its first 1,000 paying subscribers compared to the effort in going from 1 million to 1.001 million paying subscribers, for instance.
As such, content creators who join a digital platform early on should be compensated — or rewarded — in a manner that recognizes their dynamic value and contributions to building the network.
The RAE Token allows for creators to realize that dynamic value in a way that paying in cash does not.
The reason why is because RAE Tokens are allocated to content creators (based on the lifetime value of the subscribers they acquire and retain) on a predetermined schedule — 10,000 RAE Tokens per minting — that will decline over time until 34 million RAE Tokens are minted.
With the supply side of RAE Tokens controlled via blockchain technology, the average tokens earned per content creator now is higher than what it will be when more creators join the network. This is simply due to the fact that the same number of RAE Tokens will be spread across a larger number of people.
Participation in the network
When content creators are paid in cash, they have no options. They are cashed out. There is no optionality. There is no flexibility. They are completely detached from the network’s future value.
By receiving payment in RAE Tokens, content creators have the following (obvious) options:
- Sell all of their RAE Tokens on an exchange.
- Sell a portion of their RAE Tokens on an exchange and keep the rest.
- Hold on to all of their RAE Tokens
And who would want to buy RAE Tokens?
One example is digital platforms like Rokfin, who are required to burn an amount of RAE Tokens that equal the cash value of its paying subscribers, per our terms of service.
The RAE Token eliminates our leverage
Digital platforms like to pay in cash because it enables them to accrue all of the long-term value.
Examples of the added value that content creators never see include:
- When a creator joins a platform, it attracts other creators
- When a creator joins a platform, the retention/lifetime value of existing users improves
When these digital platforms are acquired or go public, they retain all of that value, which is derived almost entirely from the network. Meanwhile, the content creators who actually built the network don’t get a slice of the pie, so to speak.
We’ve used this example before, and it’s worth repeating: When YouTube, WhatsApp, and Instagram were acquired, none of the creators who published content on those platforms received a penny.
The RAE Token separates Rokfin from the value of the network in ways that cash does not allow. If Rokfin paid in cash, we could leverage content creators like YouTube does.
We choose a different way — one that aligns our interests with content creators and offers a solution to the creators’ dilemma.
Transparency breeds trust
The beauty of the blockchain is that RAE Token transactions are publicly available. We also post updates on Twitter to share how many RAE Tokens are minted, burned, etc.
Compare this to YouTube, which reveals very little meaningful data to content creators. On earnings calls, YouTube’s revenue is never broken out from Google. Any information that would shed light on content creators’ impact on building YouTube’s network is kept hidden.
Educating people on the RAE Token
We recognize that blockchain and cryptocurrency are buzzwords that often draw skepticism due to so many phony projects.
On the Rokfin and RAE Token blogs, we’re attempting to demystify some of these abstract concepts by providing practical use cases for the technology.
Thanks for your support, and if you’d like to become a content creator on Rokfin, please email creators@rokfin.com.
About Rokfin
Rokfin Inc., a Delaware C Corp based in Austin, Texas, is a creator-first subscription media company and the world’s only digital platform that rewards content creators for the full value they generate. Rokfin is the first blockchain media project with a practical application of the technology to compensate creators for the network effects they create and residuals for the lifetime value of their fans. For more information, visit Rokfin.com.
About Receive Access Ecosystem (RAE) Token
The RAE Token is a utility token based on Ethereum’s technology and follows the ERC-20 token standard — the most popular token type. The token represents the total value of the RAE ecosystem’s network. Current digital platforms that utilize the RAE Token include Rokfin, a creator-first subscription media company and the world’s first blockchain media project with a practical application of the technology. For more information, visit RAEToken.org.
