Zora’s recent airdrop of its namesake token, intended to further cement its role in the Web3 creator economy, has instead sparked considerable controversy. Launched on April 23, the token’s rollout was mired in confusion, with Zora’s team waiting two hours post-launch to make an official announcement. By then, the token’s value had already nosedived from $0.037 to $0.017, leaving many users disgruntled and questioning the platform’s communication strategy.
Zora’s Tokenomics Under Fire
The tokenomics of ZORA have not escaped scrutiny either. A significant portion of the supply—45%—is allocated to the team and investors, while 25% is set aside for the project’s treasury. This distribution leaves a mere 20% for community incentives and just 10% for a user airdrop, prompting allegations of inequitable distribution. Critics have also pointed out the token’s lack of utility, as it confers no governance rights or equity claims. In response to the backlash, Zora hinted at new functionalities for the token on May 1, a move that appears aimed at appeasing its user base. This situation draws parallels to The Protocol: Inside Movement’s Token-Dump Scandal, where similar issues of token distribution and utility were hotly debated.
Yet, some defenders of the project have emerged, highlighting the financial benefits of sharing content on Zora. Singer Vérité, who embraced Web3 early, expressed gratitude for being rewarded for her initial participation, emphasizing Zora’s unique cultural aesthetic compared to other crypto ventures.
The Shift from NFTs to Memecoins
The ZORA token launch is part of a broader movement away from traditional NFTs towards memecoins, or “content coins.” Unlike previous NFT models, each post on Zora now generates a tradeable memecoin, with creators earning a share of trading and liquidity fees. Adam Levy, the host of the Mint podcast, noted that this shift aligns with a new wave of creators, particularly those adept at producing viral, meme-based content.
Despite NFTs’ dwindling sales since their 2021 heyday, some creators, like Vérité, question the lasting value of digital artifacts beyond speculative markets. Music artist Latashá echoed this sentiment, criticizing the overemphasis on speculation rather than cultural value. Her view underscores a common critique: that the crypto community has focused too much on jargon and not enough on practical applications of blockchain technology.
Looking Ahead: A Changing Landscape
Despite the current challenges, many believe blockchain’s potential in the creator economy remains vast. Vérité has shifted her focus from merely making Web3 tools work to finding innovative solutions for artists and audiences, reflecting a broader reevaluation of blockchain’s role in creative industries. Meanwhile, Levy remains a staunch advocate for NFTs, asserting that the technology is still in its infancy and far from a passing trend.
There is also a growing trend of integrating blockchain technology more seamlessly into user experiences. Rap duo Run The Jewels’ fan club rewards members with onchain tokens disguised as “JWL points,” highlighting a shift towards user-friendly applications where blockchain remains in the background. This mirrors the approach seen in the Tokenized Apollo Credit Fund Makes DeFi Debut With Levered-Yield Strategy by Securitize, Gauntlet, where complex financial instruments are made accessible to a broader audience.
Renata Lowenbraun, CEO of Infanity, likens blockchain’s evolution to the internet’s early days, suggesting that once user accessibility improves, blockchain could redefine creative industries. Latashá emphasizes that the future lies in artists building their own platforms, moving away from the centralized models of Web2.
As the Web3 creator economy continues to evolve, one thing is clear: the journey will be fraught with challenges. Yet, for those committed to the blockchain’s potential, these obstacles are mere stepping stones towards a future of greater artistic autonomy and innovation. The road ahead may be bumpy, but the destination—artist independence—remains a beacon for many in the community.
Source
This article is based on: After Zora airdrop goes awry, what’s next for Web3 creator economy?
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
