The right FR for your Creator Coin

Randhir

What is Founder Reward?

Founder Reward on BitClout is the % of an investment into your Creator Coin that goes to the Creator (that is you) directly. It is one of the surest ways for you to make some money. Get more followers, convert your followers into investors by showing your personality, consistency, longevity and offer value (content, time, NFTs, discounted services, etc.) to them.

What is the right Founder Reward?

I have played around with it, set it as high as 22.22 % for a long time and for the last month or two, have kept it at 12.25%. A little over the 12% and of course, the date 12/25 is a significant day in my life. I do gamify and do short 3-5 hour stretches of 2-5% FR to help my followers get some buys / adds in and also long-term help those who've held on, gain in the value of their holding, thereby building a community of well-wishers and promoters.

For me, the value of an investment is three-fold:

  1. An investor putting in any amount (especially in the early days) meant that they trust me and they trust that I will not rug-pull and vanish from BitClout as many have. Given that I did not know anyone here in real life, it was a good feeling to get huge investments.
  2. The Founder Rewards of course helps grow your wallet and I have used most of it to invest in other creators and of course, recover some of what I invested in my own coin so that the net investment in my own coin is minimal. This was important for me to get to a comfort level that even if all the investors in my coin decide to sell (in the case of the BitClout Doomsday scenario), I don't technically need to sell my own CC.
  3. The support, encouragement and content-boost (reclout, like) that you get from your investors because they want you to grow almost helps build a community of well-wishers and mentors that will guide you and also promote you to help spread the word on your projects and your content.

Keeping this in mind, I've decided to keep it at 10-12% as a FR long-term (so that it encourages long-term investors into my coin) and occasionally do a 2-5% FR promo, to get more followers to buy in small amounts and add them to the investors group.

The Right Founder Reward for you when you get started

If you are just getting started, definitely start with 100% FR until you've got people you trust to buy the first 15-30 coins. This is to ensure that anyone new who comes in, knows for sure that they will not get dumped by some early investor bot or trader. With @CreatorsICO and a few other initiatives run by @CreatorFund (@MarioNawfal and @GoatTrade), we've come up with a structure where if you are vetted as a legit creator, we buy in around 15 coins and distribute the coins to @CreatorFund and the Creator and ourselves in a suitable ratio ensuring that there's a stable base for all new investors to come in. While we might tweak the # of coins at some stage, what this means for most creators who are not funded in this fashion is to buy the first 5-6 coins themselves or friends they trust on the platform and then slowly lower the FR from say 100% to 50% to 30% and finally stabilize at say around the 15-20% mark when you come close to what you think is a fair short-term price for yourself (at least short term). Over time, as you spend more time on BitClout, grow your network and of course work on more projects, you will get more investments and your Coin Price will grow.

Upcoming analyses

These are some questions I am looking to tackle in the analysis. Do let me know if you have any other ideas on what I should look into.

  • What FR leads to the highest investment?
  • Does this vary for early-stage and established creators?
  • Does investments at lower FRs lead to more short-term trades?
  • Does a high or low FR lead to a more stable coin price?
  • Does the pattern change for NFT Artists (say artists who've sold more than 1000$ of NFTs)?

Author

You can check out my profile (@Randhir) and also my projects (@Creatiers @CreatorsICO and @IndianBitClout). Also, don't forget

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