The value of traditional social networks depends on directing users' attention to content & ads. Farcaster is pushing moderation at the channel level, turning channels into valuable assets.
The ability to curate content is the source of social networks' economic value. Controlling the feed ensures that 1) users see engaging content and 2) paid messages (like ads) are effectively integrated into the content consumption, and targeting the right users.
Farcaster channels inherit the power to recommend and moderate content. The latest experiment by Farcaster allows channel owners to select, display, and order content in the channel feed. The update aims to provide flexibility, allowing different channels to implement unique moderation/recommendation mechanisms.
The main consequence of this design choice will be experimentation from channels on a) different moderation/recommendation styles and b) monetisation. Focusing on (b), channel owners can now create economic mechanisms to determine what content appears and in what order. A simple example would be an openrank-like mechanism for the top cast in a channel, where third-parties can bid to display an add or a message in a high-traffic area of Farcaster.
An important caveat is that this depends on the major client (currently Warpcast) displaying content as the channel owner intends, respecting channel sovereignty.
If that holds true, I expect channels to become a valuable asset, and one of the most valuable activities on Farcaster to grow engaging and large channels.