Early Users Capture Value

Shaan Puri shares his perspective on how early platform users and content creators should be rewarded for their contributions to a platform's success, particularly in the context of social networks and crypto.

Key Points:

• Traditional Social Platform Problems:

  • Users do all the work (create content, engage, view ads)
  • Platforms capture all the financial value
  • Users only receive social value, not financial rewards

• Historical Attempts at Solution:

  • Multiple attempts to convert social networks into crypto networks
  • Previous platforms like Steemit (Reddit with real money) failed to gain traction
  • The fundamental concept remained valid despite failed execution

• Key Examples of Missed Value Capture:

  • First Uber drivers
  • Early Airbnb hosts
  • Initial Instagram power users
  • Current Clubhouse content creators

• Current Platform Value Distribution:

  • Value primarily captured by traditional investors (VCs, celebrities)
  • Active users creating value but receiving no ownership
  • Content creators working "24/7" without financial upside

• Investment Perspective:

  • The fundamental concept of user value capture makes sense
  • Early platform participants should be rewarded for platform growth
  • Current system unfairly rewards only traditional investors

• Proposed Solution:

  • Need for mechanisms to reward early adopters
  • Platform success should translate to user financial success
  • Bridge between social value and financial value needed