NFTs and a Thousand True Fans

The second way NFTs change creator economics is by enabling granular price tiering. In ad-based models, revenue is generated more or less uniformly regardless of the fan’s enthusiasm level. As with Substack, NFTs allow the creator to “cream skim” the most passionate users by offering them special items which cost more. But NFTs go farther than non-... See more

The third and most important way NFTs change creator economics is by making users owners, thereby reducing customer acquisition costs to near zero.

there are three important reasons why NFTs offer fundamentally better economics for creators. The first, already alluded to above, is by removing rent-seeking intermediaries. The logic of blockchains is once you purchase an NFT it is yours to fully control, just like when you buy books or sneakers in the real world. There are and will continue to b... See more

The same Internet that allows Netflix to help a small number of cinephiles discover an obscure documentary might also allow that filmmaker to be in touch with these same people directly, perhaps converting what Kelly termed “Lesser Fans” into “True Fans,” defined as those “who will purchase anything and everything you produce,” who “will drive 200 ... See more