The Ownership Economy
I’ve been trying to find my niche with this Revue publication.
It started off with me trying to figure out what to do next after exiting from the investing.io community. I thought I’d go into the poker niche
but that never happened ha.
It then moved into talking about the creator economy
, how independent creators (e.g. writers on Substack or builders on Indiehackers
) are making a living independent of traditional media and software companies. This term really picked up pace over the last 12 months, a trend accelerated by Covid
, and is used by Forbes
and the Economist
etc. This is also known as the Passion Economy
, a phrase coined by Li Jin from A16Z.
But I recently discovered a new term (thanks to Antonio Gary Jr. in his awesome Creator Crew
publication) that really resonated with me, especially with my attention moving back to crypto (not happened since 2017) with the rise of creator coins
and token badges
Jesse Walden from Variant Fund has an incredible article on the ownership economy
where he states that
Ownership is a powerful motivator for users to contribute to products in deeper ways, be it with ideas, computing resources, code, or community building. This more cooperative economic model helps ensure better alignment with users over time, resulting in platforms that can be larger, more resilient, and more innovative.
Rather than a platform’s inner circle of founders and investors taking home the value, users are able to earn the majority of value generated from their collective contributions.
Jesse lists some great examples, such as the DeFi
who distributes the crypto swap fee to its users who provide liquidity.
…by way of decentralized autonomous organizations aka DAOs + non-fungible tokens aka NFTs– builds a business on top of the creator economy that encourages creators, operators and the community to collaborate together under a new, interdependent ownership mechanism that combines the best of both (legacy + creator economy) worlds and then some.
He goes on to say:
This new media structure will be wholly owned by the creators, operators and consumers themselves. It will be a product of both the public and its producers and will not limit participants to a single company. These media companies can be looked at as collectives, with their own identities, where creators and consumers are encouraged to flow interdependently throughout various collectives.
Going forward, this newsletter will be at the intersection of the creator economy and ownership economy.