Monetizing open social graphs

Traditional social networks offer creators the possibility to monetize mainly one-to-many relationships.

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One-to-many monetization

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.

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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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