NFTs and A Thousand True Fans
Metadata
Highlights
- That said, there are three important reasons why NFTs offer fundamentally better economics for creators. The first, already alluded to above, is by removing rent-seeking intermediaries.
- The second way NFTs change creator economics is by enabling granular price tiering.
- The third and most important way NFTs change creator economics is by making users owners, thereby reducing customer acquisition costs to near zero.
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The thousand true fans thesis builds on the original ideals of the internet: users and creators globally connected, unconstrained by intermediaries, sharing ideas and economic upside. Incumbent social media platforms sidetracked this vision by locking creators into a bundle of distribution and monetization. There are, correspondingly, two ways to challenge them: take the users, or take the money. Crypto and NFTs give us a new way to take the money. Let’s make it happen.
NFTs and a Thousand True Fans
Metadata
Highlights
- The second way NFTs change creator economics is by enabling granular price tiering. In ad-based models, revenue is generated more or less uniformly regardless of the fan’s enthusiasm level. As with Substack, NFTs allow the creator to “cream skim” the most passionate users by offering them special items which cost more.
- The third and most important way NFTs change creator economics is by making users owners, thereby reducing customer acquisition costs to near zero.
- The thousand true fans thesis builds on the original ideals of the internet: users and creators globally connected, unconstrained by intermediaries, sharing ideas and economic upside. Incumbent social media platforms sidetracked this vision by locking creators into a bundle of distribution and monetization. There are, correspondingly, two ways to challenge them: take the users, or take the money. Crypto and NFTs give us a new way to take the money. Let’s make it happen.