Crypto Aligns Platform Incentives

Andrew discusses how cryptocurrency enables a new model for social networks and platforms where early users can capture value, using Braintrust as an example. The key innovation is using tokens to align platform and user incentives.

Key Points:

• Traditional Platform Problem:

  • Early users who help build platform value (e.g., Reddit users) get no financial benefit
  • Platforms capture all the value while contributors get nothing

• Crypto-Enabled Solution:

  • Issue platform-specific coins/tokens to early users
  • Value distribution based on metrics like:
    • Number of followers
    • User rankings
    • Contribution level

• Real Example - Braintrust:

  • Well-designed version of Upwork
  • Uses crypto model to align incentives
  • Allows users to capture value as the platform grows

• Key Innovation:

  • Makes social networks and network effects vulnerable to disruption
  • Creates financial alignment between platform success and user rewards
  • Enables value capture by early adopters and contributors