"The creator economy allows you to be your own nation state" - @Cooopahtroopa
Web3 enables people - not platforms - to own and use the value they create.
@variantfund is playing a huge role in making the passion economy a reality for the middle class.
Let me explain how 👇
Web3 enables people - not platforms - to own and use the value they create.
@variantfund is playing a huge role in making the passion economy a reality for the middle class.
Let me explain how 👇
1/ Typically, I write about specific web3 products & protocols such as Rabbit Hole and Olympus DAO.
But last week, I came across this post by Li Jin announcing that Variant Fund & Atelier were joining forces.
But last week, I came across this post by Li Jin announcing that Variant Fund & Atelier were joining forces.
https://twitter.com/ljin18/status/1450473369200205836
2/ I'm sure many people on crypto Twitter have seen posts around the topics of passion economy and ownership.
I've always had a vague idea of what these topics were, but wasn't able to explain the logic comprehensively.
So I decided to go down the Variant Fund Rabbit Hole.
I've always had a vague idea of what these topics were, but wasn't able to explain the logic comprehensively.
So I decided to go down the Variant Fund Rabbit Hole.
3/ The partners (@ljin18, @spencernoon, @jessewldn, and @Cooopahtroopa) have all published fantastic content explaining their mental models on the future of ownership and networks.
In this thread, I'll give my take on Variant Fund's thesis.
Let's start from the beginning.
In this thread, I'll give my take on Variant Fund's thesis.
Let's start from the beginning.
4/ The pre-Web Internet was only really used by people in academia, government, and tech.
The internet then was read only and complex to use.
Then in 1989, Sir Tim Berners-Lee launched the World Wide Web.
The internet then was read only and complex to use.
Then in 1989, Sir Tim Berners-Lee launched the World Wide Web.
5/ The Web was a system based on URLs transferred via the hypertext transfer protocol (HTTP).
Lee intended to use hyperlinks and web pages as a way to make the internet connected and user friendly.
The problem with the Web was that it was never truly decentralized.
Lee intended to use hyperlinks and web pages as a way to make the internet connected and user friendly.
The problem with the Web was that it was never truly decentralized.
6/ Inefficiencies in discovery, privacy, and coordination of the web led to the rise of centralized corporations.
For example, in the early days of the web (web1), it was difficult for users to find web pages.
Entrepreneurs solved this problem by creating browsers.
For example, in the early days of the web (web1), it was difficult for users to find web pages.
Entrepreneurs solved this problem by creating browsers.
7/ Browsers made it easier for people to access the web.
Mosaic, Netscape, IE, etc. were all competing to see who could hit the highest number of users.
This was the start of the "browser wars".
Mosaic, Netscape, IE, etc. were all competing to see who could hit the highest number of users.
This was the start of the "browser wars".
https://twitter.com/yb_effect/status/1408236179632398340
8/ Similarly, GeoCities enabled web page publishing for users and placed ads on users pages to make money...sound familiar?
These companies became dominant and essential for the web around the mid 90s.
Centralized powers were only starting to get popular in web1.
These companies became dominant and essential for the web around the mid 90s.
Centralized powers were only starting to get popular in web1.
9/ As technologies started to improve, developers were finally able to create web apps through Java, JavaScript, XML, etc.
Web apps started to go mainstream in the early 2000s.
This marked the beginning of web2.
Web apps started to go mainstream in the early 2000s.
This marked the beginning of web2.
10/ In web1, users only were able to read web pages.
Web2 enabled users to interact with the pages as well.
This created opportunities for devs to create platforms that helped users publish content for specific purposes (i.e. text, video, audio).
Web2 enabled users to interact with the pages as well.
This created opportunities for devs to create platforms that helped users publish content for specific purposes (i.e. text, video, audio).
https://twitter.com/yb_effect/status/1408236178340519938
11/ Initially, the companies work side by side with their users in order to grow the platform.
The company execs & shareholders are happy since the number of users on their platforms are growing.
However, the platform growth rates eventually start to flatten out.
@cdixon
The company execs & shareholders are happy since the number of users on their platforms are growing.
However, the platform growth rates eventually start to flatten out.
@cdixon
12/ At this point, stakeholder priorities start to diverge.
Creators and users on these platforms are looking for utility and stability.
On the other hand, companies are looking to increase their share price. So their focus turns to ad monetization.
Creators and users on these platforms are looking for utility and stability.
On the other hand, companies are looking to increase their share price. So their focus turns to ad monetization.
13/ The incentives are misaligned for platform operators and platform users.
This misalignment is the reason why creators have not thrived on the web so far.
But wait, how did the concept of creators & the creator economy even start?
Li Jin describes it perfectly in 3 stages.
This misalignment is the reason why creators have not thrived on the web so far.
But wait, how did the concept of creators & the creator economy even start?
Li Jin describes it perfectly in 3 stages.
14/ The first was the era of people starting to post online and gain a following - the rise of influencers (MySpace).
The second stage was platforms allowing top creators to earn income through ads (Youtube).
The second stage was platforms allowing top creators to earn income through ads (Youtube).
15/ And the third stage is platforms enabling the "enterprization of the user" (Substack).
Li's fund, Atelier, is focused on investing in these third stage companies that promote user authenticity.
Li's fund, Atelier, is focused on investing in these third stage companies that promote user authenticity.
https://twitter.com/ljin18/status/1169753427896782848
16/ The fund wants to help people earn a living by doing what they love most.
Aka, the passion economy.
Today, wage labor has become the norm.
The problem is that people have become bored and frustrated of working a 9-5.
Why can't we earn a living by doing what we love?
Aka, the passion economy.
Today, wage labor has become the norm.
The problem is that people have become bored and frustrated of working a 9-5.
Why can't we earn a living by doing what we love?
17/ Folks are most creative when they have the freedom to explore what they're truly curious about.
Creators can mean people like developers, musicians, entrepreneurs etc.
The Passion Economy is so important because it unlocks new ideas, forms of expression, and wealth.
Creators can mean people like developers, musicians, entrepreneurs etc.
The Passion Economy is so important because it unlocks new ideas, forms of expression, and wealth.
18/ However, even with products like Patreon and Substack, it is still difficult for the majority of people to earn enough revenue for a living.
So how do we make the passion economy more accessible?
This is where the Ownership Economy thesis comes in.
So how do we make the passion economy more accessible?
This is where the Ownership Economy thesis comes in.
https://twitter.com/spencernoon/status/1450473565325774859
19/ This thesis is based on the idea that web3 will unlock the power of ownership to users.
Why is ownership so important?
Think about why it's better to own a house than rent an apartment. Or buying a parking spot versus paying an hourly fee.
Why is ownership so important?
Think about why it's better to own a house than rent an apartment. Or buying a parking spot versus paying an hourly fee.
https://twitter.com/jackbutcher/status/1436692744215347202
20/ Just like a landlord owns the apartment you live in, these companies own the content you create.
Platforms like Youtube and FB then use this user content to optimize their revenue.
Only the execs earn a profit and set the terms, not the users.
Platforms like Youtube and FB then use this user content to optimize their revenue.
Only the execs earn a profit and set the terms, not the users.
21/ In web3, anyone that gives the network value in a meaningful way is rewarded.
Bitcoin miners earn bitcoin for keeping the network up and running.
Another example is Olympus DAO giving out bounties for the best marketing content.
Bitcoin miners earn bitcoin for keeping the network up and running.
Another example is Olympus DAO giving out bounties for the best marketing content.
https://twitter.com/OlympusDAO/status/1453126794241052678
22/ Web3 will allow people to monetize in an infinite number of ways.
The mentality is, "I own this NFT and can use it as I see fit".
Today creators are earning revenue through NFT royalties and tokens. This is just the beginning.
credit: @cdixon
The mentality is, "I own this NFT and can use it as I see fit".
Today creators are earning revenue through NFT royalties and tokens. This is just the beginning.
credit: @cdixon
23/ Cryptonetworks also ensure the networks are decentralized and all stakeholders have a say.
Through progressive decentralization, entrepreneurs can initially develop and grow protocols to product market fit.
From there, the DAO will take over.
Through progressive decentralization, entrepreneurs can initially develop and grow protocols to product market fit.
From there, the DAO will take over.
https://twitter.com/yb_effect/status/1415041414044475395
24/ Variant Fund II emphasizes the importance of crypto in the passion economy.
The fund is making early stage investments to help founders build protocols that replace the platforms we use today.
The fund is making early stage investments to help founders build protocols that replace the platforms we use today.
https://twitter.com/ljin18/status/1450473385125982228
25/ For example, Variant has invested in Mirror, a decentralized publishing platform.
Mirror users own their content and can monetize it in unique ways.
All contributors are also part owners of the platform through their $WRITE tokens.
Mirror users own their content and can monetize it in unique ways.
All contributors are also part owners of the platform through their $WRITE tokens.
https://twitter.com/patrickxrivera/status/1451604752035426306
26/ I believe Variant will play a huge role in bringing cryptonetworks mainstream.
Variant is focused on increasing user ownership by providing founders with help in protocol design, marketing strategies, etc.
Variant is focused on increasing user ownership by providing founders with help in protocol design, marketing strategies, etc.
https://twitter.com/toddg777/status/1451221609788809219
27/ If you want to dive deeper into the Passion & Ownership economy, check out my list of resources below!
powerful-havarti-61c.notion.site/Variant-Fund-I…
powerful-havarti-61c.notion.site/Variant-Fund-I…
28/ Summary of what was covered about @variantfund II
- The web has been been centralized from the start
- Incentives are misaligned for platforms and users
- Users don't own their content
- Cryptonetworks enable ownership
- Variant is making the passion economy a reality
- The web has been been centralized from the start
- Incentives are misaligned for platforms and users
- Users don't own their content
- Cryptonetworks enable ownership
- Variant is making the passion economy a reality
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