Last week marked the exciting arrival of Consensus Toronto 2025. For those unable to attend, CoinDesk has meticulously compiled a wealth of resources, including insights from influential global thought leaders discussing key issues within the digital asset landscape. You can catch up on the enlightening discussions from day 1, day 2, and day 3. The extensive editorial coverage is also available for deeper insights.
In this installment of Crypto for Advisors, we feature thoughts from Shivani Phull of Pixelynx, who elaborates on how the acclaimed series Black Mirror is utilizing blockchain technology to redefine fan engagement and content creation.
Additionally, financial expert Eric Tomaszewski from Verde Capital Management shares his insights on the appeal of these emerging products to the next generation of investors in our Ask an Expert segment.
We wish to thank this week’s newsletter sponsor, Grayscale. For financial advisors near Boston, Grayscale will host an exclusive event, Crypto Connect, on Thursday, June 5. Learn more.
Storytelling 3.0: When AI, Blockchain and IP Collide
The on-chain experiment of Black Mirror is shaping the future of monetizing entertainment.
Traditional storytelling is facing limitations. The conventional model of passive consumption in entertainment is increasingly misaligned with the demands of today’s digital-native audiences, spurring the need to reimagine entertainment intellectual property (IP).
From Bandersnatch to Blockchain
Black Mirror has consistently pushed boundaries, notably with the interactive episode Bandersnatch in 2018, illustrating a significant transition from passive observation to participatory engagement.
This evolution is accelerating. Younger generations, particularly Gen Z and Gen Alpha, engage with platforms such as Minecraft and Fortnite, wherein user-generated content is central to their experience. They are not content with mere consumption; they desire participation and ownership of their narratives.
Traditional IP Revenue Is Evolving
Historically, IP holders have monetized their creations through licensing, syndication, and box office revenues. However, generative AI poses new challenges and opportunities in this space. With accessible tools like OpenAI’s Sora or Runway, anyone can now generate derivative content, compelling IP owners to either adapt to new paradigms or risk losing narrative control.
This is where blockchain technology enters the scene.
Blockchain as the Framework for Interactive IP
Blockchain introduces essential structure by enabling:
- On-chain IP verification — ensuring secure and transparent ownership of creative works.
- Composable rights — allowing content to be fragmented and remixed, each segment accessible for microlicensing.
- Community ownership and incentivization — enabling fans to hold tokens that provide access to exclusive experiences as a project evolves.
- Tokenized incentives — rewarding creators and contributors with digital tokens for their engagement.
This creates new storytelling avenues where audiences become stakeholders rather than mere spectators.
Case Study: Black Mirror Enters Web3
Banijay Rights, the distribution powerhouse behind Black Mirror, has allied with Pixelynx Inc. and KOR Protocol—an innovative entertainment company co-founded by renowned DJs Deadmau5 and Richie Hawtin. Under the leadership of CEO Inder Phull, Pixelynx facilitates an interactive, compliant, and community-centric on-chain presence for the Black Mirror universe.
Their latest initiative involves a token inspired by the Nosedive episode, allowing fans to connect their social profiles to earn a reputation score. With over 300,000 sign-ups, participants can unlock exclusive rewards and experiences, providing IP holders with innovative methods to engage their fervent audiences.
The IP Industry’s Fork in the Road
The entertainment industry must embrace this transformative shift through frameworks that enhance IP protection while enabling value creation for both creators and fans transparently. This heralds a new chapter for IP, characterized by engagement, community involvement, and sustainable monetization strategies.
By evolving IP into an interactive, token-based model, rights holders are charting the course for the future of storytelling.
– Shivani Phull, CFO, Pixelynx Inc.
Ask an Expert
Q. What does “ownership” mean in the age of Web3, and how is it different from traditional investing?
A. In the realm of Web3, ownership transcends mere asset possession. With tokens like those from Black Mirror, owning a token influences governance, grants access to exclusive ecosystems, and fosters a digital identity that can appreciate over time. This model emphasizes participatory engagement, differentiating it from traditional passive stock ownership.
Q. Can reputation-based tokens create economic value from behavior and is it sustainable?
A. Yes, though with nuances. Black Mirror tokens gamify trust by translating on-chain actions and social engagements into tangible rewards. As an advisor, I caution that while promising, this introduces performance-related risk. Nonetheless, it aligns well with the inclinations of digitally savvy investors.
Q. Could these tokens serve as a new form of “digital yield” for younger investors?
A. Indeed. Rather than fixed income yields, this represents an engagement yield. Active participation and credibility can lead to various rewards like whitelisting opportunities or platform discounts, marking it as a progressive incentive framework.
In client discussions, I frame this as a potential for behavioral finance, highlighting that with appropriate risk management, these assets can foster influence, access, and satisfaction—values that go beyond merely financial returns.
– Eric Tomaszewski, financial advisor, Verde Capital Management
Keep Reading
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- Robinhood to acquire Canadian crypto firm Wonderfi.
- The U.S. Senate voted 66-32 to advance its landmark stablecoin legislation, the GENIUS Act.
- Digital Assets: Month in Review, with insights from Joshua de Vos of CoinDesk regarding crypto markets and ETF/ETP flows.
