The cryptocurrency ecosystem of content creators (Creator Coins) is facing a major overhaul following sharp remarks from Vitalik Buterin. According to the "father" of Ethereum, the current model is too focused on fame and virality instead of honoring the true value of content. #Colecolen
Why is the current Creator Coin model "broken"?
Vitalik pointed out that platforms like Zora or Friend.tech often elevate those who already have social status or are already famous, even if their content does not truly benefit the community. That's the way it is, the value of the token at this moment is entirely based on speculation and the number of followers, making retail investors susceptible to the "pump and dump" trap.
Two-layer solution: Elite DAOs and Prediction Market
To solve this problem, Vitalik proposed a resonance system:
Creator DAO (Curation Layer): Small groups (no more than 200 people) of experts will vote anonymously to select truly quality creators. This is where internal motivation is created to produce good content rather than making content to go viral.
Prediction Market (Speculation Layer): Instead of just mindlessly buying and selling tokens, you will bet on who has the ability to enter these elite DAOs. That's how it is, at this point speculators become talented 'forecasters', looking for gems before the whole world realizes.
Linking tokens with real revenue
The key point that makes this model different is the token burn mechanism. When a creator is accepted into the DAO, a portion of the DAO's revenue will be used to buy back and burn that person's coins. That's how it is, this creates real demand and helps their token have intrinsic value, rather than just being numbers dancing on an electronic board.
Anndy Lian, a reputable blockchain advisor, also agrees that this model helps maintain selectivity without losing decentralization. The value of the token will be anchored by real revenue streams, thereby protecting investors from waves of virtual speculation. $ETH
