Sanctum, a Solana startup, has recently launched a new concept called creator coins. These coins are essentially Solana liquid staking tokens issued by Sanctum, with the yield going to creators. Fans can earn loyalty points by holding creator coins, which creators can then use to provide perks for their supporters. Sanctum believes that by focusing on crypto-native creators, they can increase adoption of this new concept where others have failed.
Having emerged from the Solana Foundation’s startup incubator, Sanctum aims to create an “infinite LST future” on Solana. Their initial product, INF, provides liquidity to a pool of Solana LSTs. Despite some controversy surrounding an airdrop focused on “earnestness” over the summer, Sanctum has been actively working on expanding its offerings, including launching LSTs with various Asia-based crypto exchanges such as Binance in the early fall.
Creator coins have been in the works at Sanctum for some time, with co-founder FP Lee creating the fpSOL liquid staking token as a personal experiment earlier in the year. By holding creator coins, users forego their SOL staking yield to support creators, with Sanctum taking a small cut as well. In return, users earn “seeds,” loyalty points that allow creators to offer perks to their fans. While one may wonder why users do not receive some staking yield while charging a commission for creators, Sanctum’s co-founder J explains that, for now, giving creators all the rewards makes economic sense.
One primary audience for creator coins is celebrities who have previously launched memecoins that led to legal troubles or reputational damage. Creator coins offer less immediate upside compared to volatile projects, but they also come with less risk. Moreover, Sanctum is not the first to introduce loyalty programs based on crypto for creators, with Jack Harlow joining a platform named MITH last year. However, other creators have been slow to adopt the platform, leading Sanctum to focus initially on crypto creators for their creator coins.
According to J, previous attempts at similar concepts failed due to a disconnect between creators and their supporters. By launching creator coins with Solana users who are actively engaged with their fanbase, Sanctum hopes to bridge this gap and create a successful platform for both creators and their supporters. With a staking APY of around 10% on average, users can support their favorite creators while earning loyalty points in the form of seeds.
In conclusion, Sanctum’s creator coins offer a unique opportunity for creators to engage with their fanbase and provide rewards in a more sustainable and less risky manner compared to traditional memecoins. By focusing on crypto-native creators and providing a platform for direct interaction with fans, Sanctum aims to revolutionize the way creators engage with their supporters in the crypto space. With the potential for growth and expansion in the future, creator coins could become a popular choice for creators looking to build loyalty and support within their community.
