Introducing Brand Factories 🏭

3 min readApr 12, 2020


Javier Arrés — The Happy Wonderful Sneaker Factory

MetaFactory creates new brand economies where creators and their communities share aligned incentives through vested interest in success. MetaFactory has built a crowdfunding platform with the goal of creating community-owned brands, where the initial focus is on fashion/apparel. The platform provides a unique opportunity for creators and communities to share both responsibility and success through “Brand Factories.”

What is a Brand Factory?

A Brand Factory is a decentralized organization that promotes the collective management of a brand. The traditional distinction between supporters and artists is blurred, as everyone has a part in guiding the brand in a positive community with aligned incentives.

Factory members share the responsibility of managing the brand via Factory Memberships. The members of a Factory include: MetaFactory, brand artists/designers, and community supporters (that’s you!).

How does a Brand Factory work?

Each Brand Factory is responsible for designing, producing, and marketing its own products. The original artist/designer provides a style guide, specific to the brand, that sets a standard for the use of typography, iconography and illustration when creating new products. The artist is typically responsible for designing products, but Factory members themselves can also suggest brand-relevant product designs that are voted on by other members.

Proposal creation, voting and general Factory management occurs directly on the MetaFactory platform. Brand Factories may use any of MetaFactory’s auction and/or sales strategies for their products. New products are listed on the MetaFactory marketplace. Production and fulfillment of all products is handled by MetaFactory, under the direction of each Brand Factory.

Product auctions raise funds in the form of DAI (a third-party stablecoin* operating on Ethereum). The Brand Factory manages the DAI, including any surplus remaining after paying the cost of production, fulfillment, and other service providers, as applicable. The founding brand artist(s)/designer(s) and MetaFactory have the opportunity to redeem any or all portions of their individual Factory Memberships, at any time. In doing so, their Factory Membership percentages are reduced, while increasing those of the remaining Factory members. Thus, if the founding brand artist(s)/designer(s) and/or MetaFactory choose to redeem their Factory Memberships, the governance vote and brand value will proportionately skew to favor other Factory members.

Why use a Brand Factory?

A brand is not a single concept, but rather a set of ideas. It is the sum of every concept, impression, representation, interaction that consumers have with a product or company. It lives (and dies) by public opinion. It can be informed by official company marketing, but it is defined by its users through public reviews, blogging, social media and more.

Today, companies have more control over how they build, market, sell, and ship their products. However, consumers have more control over how they discover and decide which brands to trust. The result is a closer, more direct relationship between brands and users, with a stronger focus on participation from both sides.

Companies have addressed this change, driven by digitalization and networked communications, by increasing transparency and introducing proactive consumer engagement via advocacy programs. MetaFactory aims to take this a step further by empowering consumers to become official brand members.

No longer passive participants, brand members actively engage in defining brand meaning and its relationship to the market. They are able to direct and influence a brand based on their personal values and needs. Brand Factories promote cooperative management for the collective good of the brand and its members.

In order to benefit from a positive network effect, brands must become increasingly decentralized, sharing the burden of responsibility and the potential for success directly with its community. Public consensus increases and more value is created when all participants are aligned and community members have a say in a brand’s future.

A brand is only as valuable as its community!

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*Stablecoins are cryptocurrencies which are designed to be pegged to the US Dollar, with the value of 1 DAI equal to 1 US Dollar (subject to subtle market-driven fluctuations).

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A marketplace for digi-physical apparel created by community-owned brands.