Breaking down Zora’s latest ‘Content Coin’ fad
The post Breaking down Zora’s latest ‘Content Coin’ fad appeared on BitcoinEthereumNews.com. This is a segment from the 0xResearch newsletter. To read full editions, subscribe. The last time Zora was in the limelight, the protocol was seeing an all time-high of 20-25k tokens created daily. That was in April, just before the ZORA token-generation event — launching a “for fun only” token that was universally panned by the Crypto Twitter commentariat. The ZORA token dumped immediately on launch, daily tokens created cratered to less than 5k, and price had largely stagnated until last week. Now it’s back. ZORA is today trading 227% up on the week, and its mobile app is climbing ranks on the iOS App Store. Nearly 40k tokens were created yesterday, the highest in the protocol’s history. About 15-50% of the tokens (denoted in blue below) are coming from Base App, Coinbase’s newly rebranded wallet app. The economics of Zora Zora is not a difficult product to understand. It’s pump.fun with a social network. Or think Instagram, but tokenized into oblivion. Here’s roughly how it works: You are a social media influencer, and you post cool stuff on Zora. Each of your posts are tokenized as an ERC-20 token with a 1 billion supply. You receive 1% (10 million). People think your post will go viral, so they buy it (via Uniswap under the hood), and you earn a 1% cut of the trading fee paid in ZORA. That’s the first revenue stream for creators. These trades are paired against your “Creator Coin,” which is basically your profile tokenized when you sign up on Zora. Your username is the ticker. Every Creator Coin has a 1 billion supply, 50% of which is immediately tradable. The other half vests linearly to you over five years. But here’s the catch: It only pays out to you when someone really likes you…
The post Breaking down Zora’s latest ‘Content Coin’ fad appeared on BitcoinEthereumNews.com.
This is a segment from the 0xResearch newsletter. To read full editions, subscribe. The last time Zora was in the limelight, the protocol was seeing an all time-high of 20-25k tokens created daily. That was in April, just before the ZORA token-generation event — launching a “for fun only” token that was universally panned by the Crypto Twitter commentariat. The ZORA token dumped immediately on launch, daily tokens created cratered to less than 5k, and price had largely stagnated until last week. Now it’s back. ZORA is today trading 227% up on the week, and its mobile app is climbing ranks on the iOS App Store. Nearly 40k tokens were created yesterday, the highest in the protocol’s history. About 15-50% of the tokens (denoted in blue below) are coming from Base App, Coinbase’s newly rebranded wallet app. The economics of Zora Zora is not a difficult product to understand. It’s pump.fun with a social network. Or think Instagram, but tokenized into oblivion. Here’s roughly how it works: You are a social media influencer, and you post cool stuff on Zora. Each of your posts are tokenized as an ERC-20 token with a 1 billion supply. You receive 1% (10 million). People think your post will go viral, so they buy it (via Uniswap under the hood), and you earn a 1% cut of the trading fee paid in ZORA. That’s the first revenue stream for creators. These trades are paired against your “Creator Coin,” which is basically your profile tokenized when you sign up on Zora. Your username is the ticker. Every Creator Coin has a 1 billion supply, 50% of which is immediately tradable. The other half vests linearly to you over five years. But here’s the catch: It only pays out to you when someone really likes you…
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