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Matera raises $3.6 million to boost creator economy by fusing DeFi with social media

source-logo  cryptoslate.com 01 May 2024 08:16, UTC
Web3 startup Matera successfully raised $3.6 million to build a platform to solve the monetization challenge prevalent in the creator economy, according to a press release shared with CryptoSlate.

The funding round included several notable names like Sidedoor Ventures, HighCass Crypto, Medusa Ventures, The Sandbox, and Saxon Partners.

DeFi for creators

Matera’s mission involves integrating DeFi with established social media platforms to reshape the creator economy landscape. This approach combines the expansive reach of web2 platforms with the innovative potential of web3, aiming to transform creator networks into vibrant economies.

Essentially, Matera is not trying to replace existing platforms. Instead, it wants to leverage and bring DeFi to the existing platforms, tapping into their immediate market and high user base.

This strategy further distinguishes it from other web3 SocialFi initiatives, enabling creators to build their Matera Credit Score based on their engagements across established platforms. Users can exchange their credit scores for liquidity and rewards within Matera’s ecosystem.

Sam Huber, Matera’s CEO, pointed out the limited adoption of Web3 SocialFi, attributing it to the underestimation of Web2 platform network effects. He added:

“Even if they get better economics, the switching costs are too high for Creators to start building an audience from scratch on a new platform. Matera as a bridge, enabling users to benefit from the scale of web2 and the economics of web3, solving this dilemma.”

Matera predicts that its solution would catalyze significant growth in the creator economy, projecting it to surpass $1 trillion by 2030 and bringing 100 million creators and their followers on-chain.

Matera plans to develop a robust blockchain infrastructure encompassing a DeFi platform, protocol layer, and a layer-2 network.

Presently, Matera supports creators on the social media platform X (formerly Twitter), enabling them to fundraise and monetize their loyal fan base. However, Matera intends to extend its integration to other social media platforms soon.