【vol.3】The Ideal Structure of Fan Communities"we should frequently change the laws as long as the community constitution doesn’t change."
Last June, Bandai Namco Entertainment 021 Fund invested in Gaudiy Inc., a company that provides and operates economies for fans of entertainment media using blockchain technology.
Also in June, we invited Bandai Namco Entertainment’s CEO Miyakawa-san and Gaudiy’s CEO Ishikawa-san to discuss topics such as “Web 3.0” and “fan communities” in order to introduce Gaudiy’s business to the entire Bandai Namco Group.
Part One looked at reasons behind this investment, and in Part Two, Miyakawa-san and Ishikawa-san discussed how we can apply Web3.0 concepts to entertainment business. In our final part, we will explore what makes up an ideal fan community structure.
*Access past articles below!
Kazama
Thank you so much.
Now I better understand the potential of Web3.0 concepts in entertainment. Now, I’d like to move on to the discussion of something we’ve been touching upon throughout our conversation: the ideal structure of fan communities.
Please tell us your thoughts on the ideal relationship with the fans of entertainment and IPs. Let’s start with Miyakawa-san.
Miyakawa
Well, first of all, I love live entertainment.
The increasing popularity of online services and social media has individualized our hobbies and interests, but when you go to live events, you can meet people that love the same things as you.
For example, you wouldn’t come to a live Gundam event if you didn’t know anything about Gundam.
There might be some non-Gundam fans that come just to troll the people there (laughs), but most of the people there love Gundam. I would love to create a space like that. That’s why I keep saying I want to create fan communities and IP-based metaverses.
A place for people to get together with others who share the same interests is precious and comforting.
I go to concerts of British rock bands from the 1960s, and I only see men in their 60s. But that feels comforting because everyone there loves the same thing. And because I know how that feels, I want the world to be full of spaces like that.
Ishikawa
Like you said, it feels good to join a community where everyone is looking in the same direction, and such communities are in high demand right now.
People are tired because conversations on modern-day social media platforms are focused on making everything look “cute,” “cool,” or “appealing.” They’re not tired because of abusive comments. They’re sick of everyone posting only “the good things” online.
We all know we can’t always “look good.” We’re humans, so we slack off and eat junk food. But all the posts look good and positive, so people who see them feel inferior to everyone else. That forces those people to look better, intensifying the fight to showcase better versions of themselves and negatively affecting their well-being.
But in a community of people that love the same thing, everyone would be aligned, and no one has to fight for recognition. I feel that such a community is much healthier than the existing large-scale communities on social media platforms.
By using blockchain, we can implement a system to reward those communities and even support people’s lives, just like in the Philippines, where even older adults are playing blockchain games.
At its core, Web3.0 has the potential to become a social infrastructure to support all human activities, not just the psychological aspect of fan activities, and that can offer a lot of value to our society.
Kazama
I see.
You brought up the idea of giving back to the fans, which we touched upon in previous sections. I’m actually concerned about some people coming into those communities to exploit that structure for financial gain. We could have communities of Idolmaster fans or Gundam fans and start seeing participants who aren’t fans of those IPs.
That would remove the sense of belonging and unity from the communities, but can we prevent that from happening? I think it’s crucial for creating a truly comfortable space.
Miyakawa
Listening to Ishikawa-san’s idea made me think of something. Maybe we can quiz the people entering the community with questions like “Which one is a GELGOOG?” We shower them with 100 questions, and if they can’t answer correctly, they can’t come in. That would prevent potentially toxic people from joining the community.
Ishikawa
We are calling that “Proof of Learn.” You have to prove your validity through knowledge. On a blockchain, you can design various forms of governance by programming codes. Miyakawa-san’s idea sounds great, and I think it’s essential to find the appropriate balance for each service by trying out different ideas.
I say that because financial benefit is integral to the balance. Miyakawa-san noted that money is like our blood, and that is true. Money is a crucial part of our society and a tool we can use to produce things.
One reason the creative sector, including video creators, is quite active is that people can earn money. I don’t think that’s a bad thing. But we lose balance if we push that aspect too much, which is why we need to use programming to try out various patterns and adjust the balance.
So maybe we could announce a policy that the laws will constantly change in the Gundam community and adjust its balance through programming codes. They’re just codes, so if we update the law, it gets reinforced immediately. I believe we can keep trying and adjusting and eventually form an ideal community structure.
Miyakawa
That is a valuable point. I also think we should frequently change the laws as long as the constitution doesn’t change.
That’s what we do with Gundam. When we produce a new Gundam installment, I often tell the directors that the series has a constitution. First, the work must feature a robot called Gundam. Second, the story must take place during a war. And finally, it must be an ensemble drama of the youths. As long as they follow these three points, the directors and producers are free to do whatever they want. So we can do the same thing with our communities and let everyone know that they must follow the constitution, but the laws will constantly change.
I also want to establish an economy within the IP-based communities. Say someone wanted to build Gunplas instead of getting a paid job. It would be wonderful if that person kept building Gunplas and eventually started earning enough money to make a living. I would love to see something like that happen with our IPs.
Ishikawa
Blockchain can help create the structure you just described by giving back to the Gunpla builders while protecting the rights around the IP.
There’s also interesting data that 95% of revenue generated in a community for derivative works circulate within the same community. So I expect the profit from building Gunplas to be used for Gundam-related things. I guess that’s what it means to be a fan.
In that case, users will use their earnings from the community not just for daily activities but also for the content we provide. That becomes the resource for creators to produce more content, and we can expect a continually growing community.
Miyakawa
I agree. I can imagine people buying food with the money they earned from Gunplas, but they probably wouldn’t spend that money to buy a car. They would most certainly buy Gunplas. That cycle keeps the economy going.
Ishikawa
If the fans recognize that they’re making a living from this cycle, that will incentivize them even more, and they’ll continue to be fans.
Kazama
I truly appreciate both of your insights.
Since we don’t have much time left, I’d like to start wrapping things up.
Ishikawa-san, what did you think of this discussion today?
Ishikawa
I know Web3.0 or blockchain sounds sketchy and foreign to many people, but in reality, it’s a remarkably inspiring technology. I believe if people in the entertainment industry adopt this powerful technology, we can create a fascinating world, so I would love it if everyone could at least try to understand the technology before rejecting it.
You can contact me directly for any inquiries. I just want everyone to know that this technology can help us and not harm us.
Kazama
Thank you. How about Miyakawa-san?
Miyakawa
I’ve been working in the Bandai Namco Group for over 40 years, and I’m experiencing something I’ve never experienced before. In the past, when I wanted to produce an action figure, I talked to a mold sculptor as a creative partner for formulating the content. The same went for character design. I met with professional creative partners for each field.
What’s interesting is that thanks to the investment, I now have a “technological” partner to discuss new ideas with. It’s the first time in 40 years to have someone like that. I’ve never expected something like this to happen during my career.
Ishikawa
I really appreciate your words.
Kazama
We hope that our relationship with Ishikawa-san and everyone at Gaudiy continues for a long time. We look forward to maintaining our partnership.
Thank you so much for taking the time to join us today.
Miyakawa
I had a lot of fun. Thank you so much.
Ishikawa
Thank you very much.
End
■Overview of Bandai Namco Entertainment 021 Fund
Main investment targets
Blockchain, VR/AR/xR, AI in Japan and overseas Entertainment utilizing technologies such as products and services related to, and In addition, Metaverse, startup companies engaged in Web 3.0-related businesses, etc.Target stage
Companies in a wide range of growth stages from pre-seed to later stageScale of investment
Approximately 1 billion yen per year (3 billion yen over 3 years)Ticket size
10million to 500 million yenOfficial website
https://021fund.bn-ent.net/en/ (English)
https://021fund.bn-ent. net/ (Japanese)