Levie: Token-incentivized social networks fail because later users receive less utility
Aaron Levie · #76: In a World with 99.99% Accurate AI… (feat. Aaron Levie) · More or Less Podcast · Dec 6, 2024 · at 10:09
Aaron Levie explains why financialized Web3 social media models break fundamental network effect dynamics.
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“I just don't think you can build a social network where financial You know, where monetization or incentives is at the core of the network. I think people have to join these things because they want the utility of whatever the network is. And that is how you self propagate these networks. And so adding a financial incentive sort of creates this very perverse dynamic where, where sort of, you know, you want to invite 10 friends and they invite 10 friends and then the early people get all the money and then the later people don't get any of the money. And if the money is the utility, That by definition, your later users are getting less utility. And the way that these networks work is you want Metcalfe's Law. You want more utility the more people are on the network and not, not sort of less utility the later you join.”
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