The global work environment:
What’s going on?

It shouldn’t come as a surprise to anyone that over the last few years, the global work environment has been going through a revolution, marked by unprecedented changes.

Technological advancements, shifting demographics, a VERY unstable political scenario, a post-pandemic world… The list goes on and on. MANY ingredients are affecting the work relations at different levels.

This scenario is filled with challenges and opportunities alike. High levels of worker stress persist as a notable constant, with a Gallup report underscoring that a significant portion of the workforce in regions like the U.S. and Canada experiences substantial daily stress. This phenomenon isn't just a matter of personal health but resonates deeply with productivity and workplace longevity.

One thing that has undoubtedly changed in recent years is the idea of the traditional office routine - in many cases, it has been replaced by hybrid work models, a transformation accelerated by the global pandemic.

As usual, businesses are in a constant movement for adaptation, revising people management strategies, empowering teams for effective collaboration, and looking for ways to position themselves in a rapidly changing battlefield.

Challenges at the forefront

While certain regions boast of labor-market recoveries and growing sectors, others grapple with rising unemployment rates and sluggish recovery, particularly in sectors most affected by lockdowns and restrictions.

The disparity extends beyond geographical borders, touching upon gender, age, and educational levels. Women and young workers have suffered the most employment losses, highlighting an urgent need for policies that champion inclusivity and resilience in the face of economic shocks.

There’s also the cost-of-living crisis, fueled by rising inflation, which has eroded real wages, hitting the most vulnerable segments of the workforce hardest - and in many cases forcing these groups into seeking new income sources.

Web3 and the Future of Work

The decentralized ethos of Web3 presents a promising work environment that is more flexible, inclusive, and attuned to the needs of a digital-first workforce.

In one of our first editions, I talked about how Web3 helps level the playfield when it comes to showcasing one’s talent:

This leap towards a new paradigm could very well redefine our understanding of work, collaboration, and employee empowerment.

So before we move on, here are some of the main aspects of the current global work environment and Web3’s role in reshaping it:

→ 🌍 The global work environment is in flux, with technological advancements and the (post) pandemic world reshaping how and where we work.

→ 📈 High worker stress and the shift towards hybrid work are defining features of the current landscape, posing both opportunities and challenges.

→ 🚀 Web3 emerges as a catalyst for transformative change, offering a passport into a future of flexible and inclusive labor relationships.

→ 💼 Challenges such as labor-market disparities, social protection, and the cost-of-living crisis underscore the urgency for adaptive and inclusive policies.

→ 🌟 The intersection of Web3 and labor relationships holds the promise of revolutionizing how we envision the workforce of the future.

Web3 - and everything in and around it (cryptocurrencies, blockchain, NFTs, etc.) is growing, and that’s a fact.
And like any other growing industry, this also comes with new opportunities for both companies and individuals.

Today, we’ll explore one of my favorite aspects of this exciting space: Creators & Gig economy.

LFG!

Understanding the space:
Creators & Gig economy

Being your own boss, getting to choose the projects you want to work on, and connecting directly with your audience - all these with the prevalence of short-term agreements. In essence, that's what Gig & Creators Economy is about.

It’s also about individuals monetizing their skills and talents through various avenues, like:

→ Freelancing: Offering your services (writing, design, marketing, etc.) on platforms that “match” you with projects looking for professionals;

→ Content creation: Building an audience on YouTube, Twitch, or other platforms and monetizing it through ads, sponsorships, or merchandise;

→ Selling digital products: Creating and selling online courses, ebooks, music, or artwork.

→ Wearing a pink beanie and posting memes on LinkedIn 😃.

(*Since our focus here is not on politics, I won’t enter the debate around the “uberization” of the workforce and how/if this affects the relations between professionals and companies. We’ll just talk about things as they are.)

The rise of the gig economy:

The Gig & Creators Economy is already experiencing explosive growth. According to a 2023 study by Upwork, 59 million Americans (36% of the workforce) identified as freelancers in 2022, and this number is projected to reach 73 million by 2028.

This isn't just a US phenomenon - a 2023 report by MBO Partners estimated that the global freelance market will reach $2.7 trillion by 2027.

I am sharing these numbers mainly because many people still see this environment as just a way to make some “extra bucks”.

“Ok, I get this whole ‘gig economy’ thing. But how does Web3 change this?”

Our beloved Web3, with its decentralized and blockchain-based technology, is transforming this topic in incredible ways. Here's how:

→ Empowering creators: You can own your work and data, not a centralized platform. This means you have more control over your content and how you monetize it. For example, musicians can use platforms like Audius to distribute their music directly to fans, cutting out streaming services that take a significant cut of their earnings.

And creators can also “attach” royalties to their pieces, guaranteeing a lifetime revenue source, since every transaction will transfer a certain % to their wallet.

→ Global reach: No more geographical limitations! Web3 platforms allow you to connect with a global audience and find opportunities worldwide.

As I said in the previous segment, imagine a freelance writer in India connecting with a client in the US, or a graphic designer in Brazil collaborating with a marketing agency in Europe - all facilitated by the borderless nature of Web3.

And if you are thinking "but there are platforms that already do this, without Web3”: We are talking about the whole process - the payment can be done via cryptocurrencies (so no banks or payment platforms) and, depending on the project, a smart contract can be programmed to release the payment (or installments) according to the project deliverables/targets being reached.

So yes, depending on the agreement, you can say goodbye to hefty platform fees. Web3 enables faster and cheaper transactions through cryptocurrencies. According to a study by Deel, a payroll and compliance platform for remote teams, businesses can save up to 71% on transaction fees by using cryptocurrencies compared to traditional payment methods.

Foundation has summarized the issues with the traditional platforms in a very interesting way:

→ Building trust: As seen above, centralized platforms may not be the best option when it comes to having a transparent and secure way to verify your history and build trust with potential clients.

For instance, artists can use different platforms to create and sell unique digital artwork with an immutable record of ownership and authenticity stored on the blockchain.

Examples in Action:

💡 Decentralized marketplaces: Platforms like SuperRare allow artists to sell their work directly to collectors, cutting out middlemen. This has led to the emergence of new art movements and the democratization of the art market.

💡 Play-to-earn games: Titles like Axie Infinity let players own in-game assets and earn rewards through gameplay, blurring the lines between work and play.
This model is still attracting millions of users, particularly in developing countries, who can generate income through playing the game.

💡 Fan tokens: Those allow creators to build communities and monetize their fan base through exclusive content and experiences.
For example, sports fans can purchase tokens from their favorite teams or athletes, gaining access to exclusive content, voting rights, and other benefits.

💡 The rise of DAOs (Decentralized Autonomous Organizations): These community-owned and governed organizations could play a significant role in funding, supporting, and managing creative projects.

💡Explroring the metaverse: Imagine creating and monetizing virtual experiences, wearing your own custom-designed NFTs as clothing, or attending exclusive events, crafted for specific audiences.

Under the Beanie: My view on the gig economy

If someone asked me to summarize everything we have discussed so far, I’d use this triangle.

We can use it to highlight an easy-to-understand how the Creators’ economy interacts with Web3.

🧑‍🤝‍🧑 Micro-communities: I see micro-communities as the hidden gems of the Web3 ecosystem.

While their numbers might sound insufficient for a project to thrive (in comparison to what Web2 usually has), they offer a unique space where like-minded individuals converge around shared passions and projects.

These communities are fundamental to nurturing growth and facilitating genuine engagement, providing a supportive base from which projects can flourish.

As a creator, you’d certainly value an engaged, loyal group over a flat, boring, “distant” big number.

In Web3, the value of engaging with micro-communities cannot be overstated. It's a strategic approach that fosters a sense of belonging and partnership.

I talk a lot about “co-creation”, collaboration, loyalty, and so on, so believe me when I say that an engaged micro-community has a HUGE value for a project.

By prioritizing genuine interaction and mutual respect, you pave the way for a project that's embraced by its community. Remember, the strength of your Web3 initiative lies not just in its technology but in the people who support and advocate for it.

🎯 D2C: Direct-to-Community is a concept that’s been discussed (and used) for a while, but has gotten a fresh meaning with Web3.

In short, that’s the model in which brands push products directly to consumers, with no intermediaries.

When it comes to doing this in Web3, however - and specially if you are a creator - this idea is easier to capture. A designer, for instance, can sell their art collection in an NFT format directly to the buyers, without banks, payment platforms, brokers, etc. The “direct” part of D2C is indeed Direct.

Blockchain is the powerhouse fueling this evolution, offering transparency like never seen before. It’s not about bypassing intermediaries for the sake of it, but rather crafting a transparent pathway where creators and consumers can connect on a level playing field.

Think about it – a scenario where the authenticity of every product is indisputable, and the value flows freely, based exclusively on (verifiable) offer and demand.

Take Youtube or Instagram for example: you may be the creator, but at the end of the day, you only take home a fraction of the value you created to the platform. Not to mention platforms like LinkedIn, that don’t even offer a path for (direct) monetization, regardless of how much effort you put into it.

Therefore, it is not a surprise when we see thriving Web3-native artists/creators/”influencers” that rely solely on their direct connection with the audience.

₿ Cryptocurrency: Yes, there’s the speculative-tokens-pump-N-dump narrative and the “degen” aspect of it, but here I want to take a different path.

Cryptocurrencies are truly revolutionizing the gig economy: lightning-fast payments + transfers that take seconds instead of days + no KYC required. Not bad, right?

Whether you're designing logos from your beach hammock in Bali, coding in a cafe in Lisbon, or writing a romance book in Sydney - OR even if you are the person hiring these professionals - cryptocurrencies offer a secure, easy way to pay or get paid for any given task.

I mean… look at the traditional way of getting things done:

→ From the freelancer point of view: Open a bank account/set up an account on a payment platform → Share bank (and sometimes personal) details with the company you are working for → wait for up to a few days to see the payment reach your account → pay a % for the bank/platform you get paid through → Create a receipt for that payment.

→ From the business point of view: Set up a business bank account/payment platform account → Ask for the freelancer’s bank (and sometimes personal) details → transfer the money (“Is the IVA included?”) → Wait for up to a few days to see the payment be confirmed → deal with bank/platform costs → Get the receipt from the freelancer you hired → Deal with all the paperwork/tax stuff around this transaction.

With crypto: Freelancer shares their wallet address → Company transfers → amount reaches the destination in seconds/minutes. All are verifiable and transparent, and there’s no need for intermediaries.

Yes, there must be some education around using cryptocurrencies/setting up wallets, but we can’t deny they open space for A LOT of gains when it comes to cost and time efficiency - and there’s still some “grey area” for taxes.

So there you have it: the Micro-communities + 2DC + Cryptocurrency combo has a huge potential to change most of the aspects in and around the gig economy, from payments to the creative process.

If you are a creator or a company that relies on freelancers, there are plenty of opportunities to make things better by using Web3.

Are you ready to get it done?

Time to put the crystal ball to work 🔮.

While it’s impossible to predict what will happen, I’ll share two aspects I see becoming a reality in the creators’ economy sooner than later:

Tokenized connections have the potential to fundamentally change what being an “influencer” means. The whole “content creator” economy may go under a big shift.

As we discussed earlier in this edition, instead of having a huge number of distant followers, a person can leverage an engaged community to boost a project/brand/business.

In other words: today’s KPIs may not be important in a few years - and others may become the new standard.

For example: By interacting with token-holders (“fans”/”followers”) you can distribute exclusive content, airdrop collectibles, and offer money-can’t-buy benefits. It’s a “targeted ads” idea but in a much more direct, reliable manner.

Storytelling & Creativity: these two skills - which are already highly valued - may become even more important in the (near) future.

With all these AI tools popping up every day, we’ll soon be in a scenario in which any persona can create a realistic video or a cool logo with only a few clicks. Therefore, being able to create something that REALLY connects with the public becomes vital.

I mean, if any person can create a 500-word “article” about anything just by telling a tool to do so, being able to create a piece that resonates with the public becomes a rarer - therefore more expensive - skill.

So instead of learning “how-to-create-a-logo-on-MidJourney-in-10-seconds”, I’d rather invest my time into learning how to make the product/project behind this logo work.

What do you think?

See you soon.

#LFGrow
Diego Borgo