Original Author: Kunal Doshi, Blockworks Research

Original Translation: DeepTech TechFlow

Lately, there has been a lot of discussion about the CCM (DeepTech Note: Creator Capital Market, related to the creator economy), so I crunched some numbers on creator income comparing @pumpdotfun to @Twitch. Pump is not just competing with Twitch; it is also capturing Twitch's market share.

Creator Income

Creators on Twitch earn money through subscriptions and ads. Subscription fees are $4.99, $9.99, or $24.99 per month, with creators and Twitch each taking 50%. Ads pay an average of $3.50 per thousand views, with creators receiving 50% to 70% of ad revenue. In reality, this means small streamers can earn only a few hundred dollars per month, mid-tier streamers can earn between $5,000 and $30,000, and top streamers can earn over $100,000 per month.

Pump has completely disrupted this model. Creators no longer earn commissions through subscriptions and ads; instead, they earn transaction fees through their tokens. In the early stages (market cap $88,000 to $300,000), the fee per transaction is around 0.95%, and as the market cap exceeds $20 million, the fee gradually decreases to 0.05%.

Just yesterday, 9,000 wallets claimed $2.8 million in creator fees. This means an average of around $300 in earnings per creator per day, leading to approximately $9,000 in monthly earnings if sustained.

Looking at the top 10 creator coins on Pump's homepage, most have already generated significant daily returns. On Twitch, achieving a six-figure income requires 10,000+ concurrent viewers. In contrast, on Pump, creators can achieve similar income levels through a smaller community scale.

Market Valuation

From a valuation standpoint, @Twitch was valued at $45 billion in October 2024, with annual revenue of $18 billion, resulting in a valuation multiple of 25x. According to @pumpdotfun's August data, its valuation multiple is close to 14x.

More importantly, the incentive mechanism is key. Early creators on Pump can receive up to 80% of the fees, and as they grow, the platform gradually increases the revenue share. This is precisely the shortcoming of Twitch and is why Pump appears so disruptive.

Core Competitiveness

Pump provides small creators with an income opportunity that only the top 1% of Twitch creators could previously enjoy. If even a portion of Twitch's creator base were to migrate to Pump, the entire streaming economy could be fundamentally reshaped. And it's not just Twitch; creators from TikTok and YouTube could also be part of this migration, making the future growth potential immense.

Sustainable Flywheel

The biggest issue lies in sustainability. Pump's development depends on how creators use the fees they earn. If they reinvest the income into their own tokens or better content, they can drive a flywheel effect.

We also need to see more live viewers to attract top-tier streamers. Currently, it feels more like a speculative endeavor rather than genuine content consumption, but this is a hopeful beginning. Kudos to Pump!

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