There have been changes in the world of publishing as we know it. Platforms like Substack have disrupted the power dynamics of the publishing industry in recent years. Through this disruption, they have given journalists freedom and uncapped earning power. Literary NFTs are now adding fuel to the fire, allowing for unprecedented levels of collaboration, direct connection, and value creation between writers and their audiences. While traditional publishing will not go away, creators have been empowered even more.
What is a Literary NFT?
A literary NFT is a non-fungible token that represents a digital literary work (a book, poem, or article). The beauty of literary NFTs is their adaptability. NFTs can be used to display a written work, as a digital collectible, or as a key to an exclusive fan community. Individual NFTs of fictional literary characters may be released by some creators.
While it is still in its infancy, a slew of literary NFT projects from both independent and established creators have emerged in the last year. While the benefits are already visible as Web3 adoption increases, literary NFTs are positioned to become an integral part of any writer’s marketing, crowdfunding, and community-building strategies.
The benefits of NFTs for Writers
The legacy publishing industry, like the art and fashion industries, is dominated by power-hungry centralized middlemen. Traditional publishers have complete control over the value chain in exchange for providing start-up funding and distribution channels. This system is upended by NFTs, which bypass publishers entirely and give writers more creative freedom, flexibility, and earning power than ever before.
Creative Control and Fan Connection:
Writers, like all creatives, desire the freedom and unrestricted expression of their ideas. However, in many writer-publisher relationships, the publisher has a strong influence, over creative input. Writers can avoid these creative gatekeepers and retain full creative control of their work by publishing directly to their audience.
Going direct to the audience also provides creators with an unprecedented level of utility, access, and authentic fan connection. Finally, it is up to the creators to decide what kind of benefits they want to offer to NFT holders. Some NFTs can provide owners with personal access to the creator, while others can act as a ticket to an exclusive fan community or book signings.
When it comes to earning potential, writers have historically had it rough. Professional writers are frequently subjected to low salaries and razor-thin royalty percentages as a result of the traditional publishing industry’s vastly misaligned financial incentives, while publishers and distributors capture the majority of the value. NFTs turn the value chain on its head, allowing creators to earn instantly, directly, and in some cases, consistently.
Smart contracts allow writers to earn a commission on every resale of their work. With used book sales accounting for a sizable portion of the overall book market, the ability to collect royalties on secondary sales opens up previously unseen value chains for writers.