02 Problem Statement

The creator economy faces fundamental structural problems that extract value from creators while limiting fan participation and creator growth. These systemic issues create market inefficiencies that Miau is uniquely positioned to address.

Real-World Impact

• Creator earning $5,000 monthly loses $1,000–$1,500 to platform fees ($12,000–$18,000 annually)

• Mid-tier creator earning $20,000 monthly loses $4,000–$6,000 ($48,000–$72,000 annually)

• Top creator earning $100,000 monthly loses $20,000–$30,000 ($240,000–$360,000 annually)

These fees compound over time, representing hundreds of thousands to millions in lost income over a creator's career. The extraction model prioritizes platform revenue over creator success, creating misaligned incentives.

Zero Fan Participation

Current platforms limit fans to transactional consumption: pay for content, consume content, repeat. Fans cannot invest in creators they believe will succeed, cannot benefit from creator growth and have no financial participation beyond content purchases.

This creates missed opportunities for both parties. Fans who identify talented creators early have no mechanism to benefit from their support beyond content access. Creators lose potential capital from fans willing to invest in their success.

Growth Capital Access Failure

67 million creators worldwide lack access to growth capital without taking on debt. Traditional financing options are inappropriate for creator businesses:

• Bank loans require business history and collateral creators often lack

• Personal loans carry high interest rates and repayment obligations

• Revenue-based financing exists but at predatory rates (40–60% APR equivalent)

• Equity financing is inappropriate for individual creator businesses

• Friends/family funding creates personal relationship risks

Without capital access, creators cannot invest in equipment, marketing, or team expansion. Growth becomes organic and slow rather than accelerated through strategic investment.

Platform Dependency & Control

Creators face complete dependency on platforms that maintain all control over policies, fees and account access. Platform decisions can devastate creator businesses overnight:

• OnlyFans' August 2021 attempted content ban (reversed after creator outcry)

• Arbitrary account suspensions with no appeal process

• Unilateral fee increases without creator input

• Banking restrictions forcing policy changes

• Algorithm changes reducing creator visibility

This dependency creates constant anxiety and prevents long-term business planning. Creators need platforms that provide stability and align interests through transparent economics.

Discovery Mechanism Failure

Existing platforms offer minimal discovery mechanisms, forcing creators to rely on external social media for audience growth. This creates several problems:

• New creators struggle to gain visibility on platforms

• Platform search relies on existing follower count, creating circular dependency

• No mechanisms for fans to help creators gain exposure

• External social media platforms control creator marketing access

• Algorithm changes on external platforms can destroy creator marketing overnight

Without effective discovery, talented creators remain invisible while established creators dominate platform attention. This reduces platform value for both new creators and fans seeking fresh content.

Banking & Payment Vulnerability

Traditional payment infrastructure exposes adult content platforms to banking restrictions and moral positioning by financial institutions. OnlyFans' 2021 crisis demonstrated this vulnerability when banking partners threatened to terminate services, forcing the platform to announce a content ban that was only reversed after massive creator backlash.

Payment processing costs further reduce creator earnings, with traditional processors charging 7–10% compared to cryptocurrency's 0.2%. These structural costs are passed to creators through platform fees, creating a hidden tax on creator income.

Content Security & Protection

Content piracy and unauthorized redistribution harm creator revenue significantly. Manual DMCA takedown processes are time-consuming and ineffective at scale. Creators need automated protection but most platforms provide minimal support, forcing creators to handle piracy management themselves.

Verification & Trust Issues

Platforms struggle with identity verification, fake accounts, and trust mechanisms. Inadequate KYC systems allow fraud and impersonation. Age verification failures create legal liability. Poor verification reduces platform credibility and creator/fan trust.