Kickstarter jumps to the blockchain

The Future. Kickstarter is doing its own bit of crowdfunding — the company is financing an independent organization to build a blockchain that it will move onto next year. That’s right, Kickstarter is upgrading its business model to crypto, NFTs, and social tokens. What does this mean for how Kickstarter functions? Probably not much, but it may ensure that the platform stays relevant while giving the blockchain some name-brand recognition.

No more crowd control

Kickstarter wants in on the crypto business.

• The company announced that it will build “an open-source protocol that will essentially create a decentralized version of Kickstarter’s core functionality.”
• The protocol will be on a public blockchain, Celo, so even competitors can use it if they want to.
• Kickstarter is funding an independent organization to develop the protocol and appoint a board to set “an independent governance lab.”

Kickstarter says that it will simply be one of the organization’s first clients.

Don’t be a Blockbuster

Although the company that will be building this proposed protocol doesn’t even have a name yet, Kickstarter said it would move its platform over to the protocol at some point next year.

Why the rush? Kickstarter knows that its business, crowdsourcing for perks once a project is completed, is becoming obsolete. That’s what NFTs and digital tokens are now for. Trying to avoid a Blockbuster situation, Kickstarter sees the writing on the wall. Meanwhile, companies like Rally and Roll are Netflix’s of this new fan-led financing economy. And now, Kickstarter has no choice but to adapt.