One way to view what's happening at Twitter today is not only as an organizational reshuffling and effort to reinvigorate product & revenues — but as a platform in the midst of a legitimacy crisis.
In a piece last year by me & @kplikethebird, we built upon historical & sociological analysis of political legitimacy to examine tech platforms’ legitimacy in the eyes of creators & users.
First, what is legitimacy? Vitalik called legitimacy "a pattern of higher-order acceptance." For Aristotle, legitimacy is rooted in justice.
German sociologist Max Weber theorized three basic sources of legitimacy, which are also useful for analyzing the platform economy:
1 - Traditional legitimacy — essentially, rule by status quo. "Follow me, because it’s always been done this way."
2 - Charismatic legitimacy — in other words, rule by cult of personality. "Follow me, because I’m charming and compelling."
3 - Rational-legal legitimacy — in other words, rule by rationality. "Follow me, because the system of rules and laws I’ve built are clear and objectively make society run better."
Most platform companies originally derived their legitimacy through charismatic origins: the founder CEOs built auras around themselves as tech geniuses and philosopher kings, and product decisions flowed from that.
There’s also a traditional source of legitimacy at play: because platforms are companies, they could operate themselves as they saw fit — as companies historically have always done.
More recently, as users became more vocal and issues of platform governance became more contentious, platforms have sought to build their legitimacy through rational-legal means — legitimacy through a system of rules and laws that everyone understands and agrees to.
In doing so, they’ve built up terms of service, "objective" algorithms, and "oversight boards" that are akin to private legal systems. In theory, these rules are intended to protect everyone and maintain community health for all. oversightboard.com
But over time, cracks in the social contract between platforms and their users started to show, as platforms' rules were exposed to be arbitrary, ever-changing, and determined autocratically.
Countless examples like the policy changes that led to YouTube’s Adpocalypse, OnlyFans’ ban of explicit content, or Apple’s restrictive App Store policies have all led to an erosion of legitimacy that strains users’ trust in the platforms.
While debates rage about the $8/mo verification subscription & the extent of Twitter's moderation — all these changes can be viewed as attempts to re-establish legitimacy and better align the platform with the will of its users & stakeholders.
Musk may have the most charismatic legitimacy of any tech CEO, given his cult of personality. But going forward, that alone isn’t sufficient.
There needs to be rational-legal legitimacy in order to cultivate higher-order acceptance by the entirety of its user base that represents a wide range of values and interests.
Rather than making product and policy decisions unilaterally, Twitter's legitimacy can be enhanced by inviting stakeholders into the decision-making process, which would also give creators, users, & advertisers the opportunity to participate in decisions that impact the business.
One small-scale example of this happening elsewhere is Airbnb’s Host Advisory Board, composed of 18 hosts who regularly convene with company leadership to influence host-related policies, programs, and products.
Another way to enhance legitimacy might be to give users more control over their own experiences on the platform: to choose the extent to which the content in their feed is moderated or fact-checked, or even to be able to export and transfer their data to other products.
True user consent, and legitimacy, occurs when they are able to participate in systems from a place of freedom and agency rather than data-driven lock-in.
Legitimacy crises usually get resolved in one of two ways: either the regime realigns their rule with the interests of their community, or the system is overthrown and a new one is put in place that better aligns the interests of the people with those in power.
The latter path could very much happen: in tech, new upstarts are always vying to inherit the users who feel dissatisfaction with existing products.
Twitter is a company that has played a pivotal role in effecting cultural and political change throughout the world.
Today it’s in the midst of a revolution itself, and legitimacy is a useful lens to characterize and analyze this period.
More thoughts on the legitimacy crisis brewing in the creator economy from last year, and how I see it unfolding (into more democratic and decentralized alternatives):
Web3 enables co-creation where fans exert significantly more influence on the creative process, powered by shared ownership & new monetization models.
But there are a variety of different approaches for fostering fan creation, each with different types of outcomes 🧵
Models for community-driven creation exist on a spectrum in terms of how much fan ownership, agency, and economic upside are afforded.
Let’s unpack the various models:
1) Constrained / directional fan influence 2) Fan licensing 3) CC0 fan creation
1) Constrained or directional fan influence
Fan input is scoped to constrained options, and projects are largely stewarded by core team members. There is potential for fans to financially benefit from holding tokens representing governance power +/or ownership of the finished IP
1 - Call the app Unhinged and vampire attack Hinge users
2 - Use token incentives to bootstrap the network
Dating apps are notoriously capital-intensive to scale, because they only becomes useful after many users join in any geography. Token incentives can build up the network to the point where underlying product utility kicks in.
3 - What you say becomes what you do
Information on dating apps is currently self-reported (job, interests, etc). The more powerful version is proving who you are with on-chain activity & ownership...
Restaurants are in the business of building connections with patrons. And yet the history of technology in restaurants has largely served to disconnect them, with middlemen – like food delivery services – extracting value from both sides of the marketplace.
Blackbird is the first web3 platform purpose-built for the hospitality industry. It presents a model wherein both restaurants and customers can both participate and benefit from the success of the network.
Just as web3 networks can leverage tokens to bootstrap growth and overcome the cold start problem, the new playbook for web3 creators is to leverage tokens to bootstrap audiences & capital to kickstart the creative flywheel.
In web2, the creator playbook consisted of investing lots of time and energy upfront into creating free content in the hopes of building an audience, then monetizing eventually through advertising, sponsorships, subscriptions, etc.
Creators in web2 face a cold start challenge: in order to make money, they need to have an audience, but in order to grow their audience, they need to have the resources to fund content creation.
"Both gig workers and content creators are reckoning with the fact that their livelihoods depend on the actions and algorithms of platforms that they have little to no ability to sway, and they have little recourse to suboptimal policies [...] and other negative experiences."
"A new form of collective labor activism tailored to the gig and creator economies is emerging — what we call decentralized collective action (DCA).
These efforts tend to be more bottom-up and diffuse than historical labor unions."