Traditional social networks offer creators the possibility to monetize mainly one-to-many relationships.
The basic description of these transactions is: the creator shares a product and gets paid for the placement.
It’s a reasonable way to make money, but it narrows the scope of how creators can create and capture value. There are few well-connected nodes making substantial amounts.
Some interactions that users crave and can lead to sustainable businesses include:
Direct interactions from followers to creators
Inter-follower transactions
Sub-community formation/transactions
Proxy Studio is an interesting place for experimentation on how decentralized social can monetize through various interaction types:
Direct economic transactions - through a Hypersub subscription, people pay Alex directly for access to his group chat and newsletter.
Shared capital and pooled information - in a many-to-many relationship, through Mercenary Capital, Proxy members surface investment opportunities and pool capital for collective dealflow/access.
Ownership in community-generated initiatives - the chat is filled with idea people with a bias towards action. Initiatives launch independently but as a result of community interactions. They usually share economics with Proxy.
Intra-community transactions - There is an increasing number of transactions between Proxy community members. For instance, a member with whitelist access might share it. Another is the secondary market for shares of Mercenary Capital or the Hypersub NFT. These are prime candidates for monetization.
The beauty of Farcaster is that communities like Proxy, or Degen form and become experimentation grounds. These emerging behaviours give us a glimpse into the future of the protocol and social as a whole.
Study Proxy.
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Category: Vision Author: @luc Writing: https://luc.cx/monetizing-open-social-graphs Tags: social, /consumercrypto, /venturecapital Notes: Luc is an investor with Cherry VC, a first check fund for Web3, and a Proxy Studio subscriber. i've been reading through his writing lately and its been really clarifying for a bunch of stuff I've been thinking about. He even wrote a post about Proxy Studio itself (unprompted, not paid promo!) that probably does a better job than I ever have to describe what we are doing, and how we are monetizing on an open social graph. Here's a link to that article, and his blog, "perspectives" which I highly recommend as for any founder or investor on FC
smart guy
Great dude
Top bloke
Swell chap
oh man, always loved reading these 'rare finds' posts you do - feels good to be in one 🔥 thanks for being a great sparring partner!
study luc
In @luc's latest blog post, explore how traditional social networks limit creator monetization to one-to-many relationships. Discover how platforms like Proxy Studio enable diverse interactions such as direct transactions, shared capital, and community-driven initiatives, paving the way for sustainable businesses.