Fanbase is a photo, video, audio chat, live streaming, and long-form content app that allows any user to post to followers for free, but also earn revenue by posting exclusive content for subscribers and with virtual currency they call “Love.” The fanbase has seen 40% monthly growth in 2021. In April alone, non-celebrities and top revenue earners averaged over $1,200 in revenue just from using the app.
What is Fanbase?
Fanbase makes it easy for artists to fund their passion.
At its core, Fanbase is about supporting the people who create amazing content with a new revenue stream. As such, the app was built with the music industry’s problems in mind, where content consumption is exploding but revenue is shrinking for the artists who create it.
You can think of Fanbase as a cross between Patreon and Fantasy Football, an app where both artists and fans are financially rewarded for their shared passion.
Artists own fan clubs that issue tokens that fans buy, collect and trade. Tokens are similar to credits or loyalty points that can be exchanged for other assets, products, or real money (fiat).
In each fan club, an artist posts exclusive microblogging content that provides authentic insight into their world. Loyal followers subscribe and post their thoughts and feedback on the stream of published content. As a fan club member, fans also receive privileged access to exclusive products and offers.
Fanbase’s initial focus was on the music market vertical, but Fanbase can easily incorporate other verticals such as influencers, sports teams, and political groups. The possibilities are endless.
What’s different about Fanbase?
Owned by the artist
Artists have complete control and ownership over their fan club. This means they are not tied to Fanbase and can take their fans, data, and revenue stream with them at any time without restrictions. Their fans could start using a third-party mobile app that would seamlessly use the same data and blockchain accounts.
This is made possible by using Lightstream’s Smart Vault, a decentralized technology where the artist’s data is controlled and managed by them, not the fanbase. Similarly, fans’ personal data belongs to them and is managed on their own devices, not on Fanbase. This decentralized design is a major paradigm shift from the way traditional applications collect and aggregate user data today.
Ease of use.
The user experience of the Fanbase app is designed to feel like a traditional app. Those without any knowledge of cryptocurrencies can get started with a few clicks.
A digital wallet is automatically installed where tokens are easily managed.
Many of the complexities of cryptocurrency management have been simplified. There is no need to install a third-party crypto wallet (e.g. MetaMask) or reload your account first to pay to run the application. All of this adds friction to the registration process that is challenging for those unfamiliar with it. In contrast, a decentralized personal profile for managing tokens is set up seamlessly on a fan’s device when creating a username.
The app also demonstrates its high performance where the user experience does not suffer from being slow and sluggish as seen with first generation DApps. This is due to the fast Lightstreams blockchain and the Smart Vault that Fanbase is designed for.
Fan clubs with tokens.
Tokens issued by a fan club use an augmented linking curve technology thanks to CommonsStack. Unique to this technology is that the funds for the token purchase are held as collateral (escrowed) within a smart contract. With this mechanism, all tokens can be converted back (settled) into the funds on collateral at any time without requiring a traditional currency exchange, the smart contract automatically handles the exchange. The benefit is a significant saving in the otherwise high crypto exchange fees and market-making services required to support the exchange of each fan club token.
The potential value of a fan club token increases as the number of members increases.
If a fan wants to liquidate his tokens, the smart contract calculates the price in line with the market based on the current number of tokens in circulation and the collateral deposited. This mechanism ensures that tokens can always be easily exchanged at a known price, regardless of the market size for the tokens.
Both artists and fans participate in the success of the fan club by holding tokens that lend financial value to the fan club. Tokens appreciate in value as the fan club’s membership grows and holds fan club tokens. Similarly, tokens lose value as fewer fans hold them.
The tokens adhere to a standardized cryptocurrency format that allows them to be tradable independently and outside of the fanbase with third-party tools.
How it works.
Each fan club has an economic system that uses a blockchain tokenization technology called Continuous Token Offering (CTO). Fans participate financially in the success of a fan club by owning tokens issued by the CTO. By collecting tokens of their favorite fan club, fans have the potential to trade them in for profit as the fan club becomes more popular.
In addition, fans who collect tokens early are also awarded with preferential treatment and access to limited merchandise and offers.
With the Fanbase app, an artist or their management team creates a fan club that they own and retain full ownership of.
Fan clubs that fans join to access exclusive content.
Fans join the fan club by paying a monthly subscription fee in fan club tokens. In return for joining the fan club, they receive access to exclusive content. Fan Club tokens are also used to purchase limited offers, exclusive experiences, and merchandise sold through the Fan Club.
Artists earn a steady income from subscription fees and the sale of their products. Artists can also hold their own fan club tokens and share in their potential appreciation.