Social Networks Add Currencies

Shaan Puri believes that in the long-term future (20 years), social networks will fundamentally change to incorporate user ownership and native currencies, allowing users who contribute value to actually own and control the networks they help build.

Key Points:

• Current Social Network Problems:

  • Users create all the value but capture none of it
  • Platform owners (Facebook, Instagram, Twitter) capture all the economic value
  • Content creators get diminishing revenue shares as platforms mature

• Revenue Share Examples:

  • Amazon merchants keep 70% of value
  • YouTube creators get 60-40 split of ad revenue
  • Twitch approximately 50% split
  • Facebook/Instagram/Twitter users get 0%

• Future Prediction:

  • Networks will have built-in currencies for users
  • Users who contribute to network will own and control it
  • Value distribution will shift from platforms to users

• Supporting Evidence:

  • Early experiments like BitClout and FriendTech showing demand
  • Current platforms starting to share revenue (Twitter payments to creators)
  • Multiple attempts will be made before someone "nails it"

• Timeline Perspective:

  • Not immediate but inevitable over 20-year horizon
  • Will take multiple iterations and attempts
  • Final successful version likely to be a "last mover" who perfects the model

• Key Insight:

  • The fundamental shift will be from platform ownership to user ownership
  • Users who create value will capture value through ownership
  • Built-in currencies will be the mechanism for value distribution