Better Aligning Value Creation & Value Capture: The Rise of Crypto Networks and the Ownership Economy


Hatched by Glasp

Sep 05, 2023

4 min read


Better Aligning Value Creation & Value Capture: The Rise of Crypto Networks and the Ownership Economy

In today's digital age, the traditional business model of charging for content has been disrupted by the internet. As a result, industries that rely on content creation, such as the music industry, have struggled to monetize their offerings effectively. While artists have been hit hard by this shift, the problem extends beyond them to the entire industry, which is undermonetizing compared to other sectors.

Consider the music industry, which is valued at around $20 billion. Now, compare that to the video game industry, which is valued at a staggering $140 billion. The discrepancy is undeniable. The question then arises: how can musicians and other creators capture the value they generate in a way that aligns with the digital landscape?

This is where crypto comes into play. Cryptocurrencies and blockchain technology enable new ways for musicians and creators to directly capture the value they create. These technologies provide opportunities for artists to monetize their work more effectively and on their own terms.

One of the key advantages of crypto networks is that they allow creators to own a piece of the internet value they create. By selling their work directly to their audience and charging them in a granular way, creators can generate more revenue per fan. This not only financially incentivizes fans to support their favorite artists but also increases the likelihood of attracting more fans in the process.

Moreover, crypto networks offer a unique solution to the problem of undermonetization by providing financial incentives that work for all stakeholders. Unlike traditional models, where value is often captured by intermediaries, crypto networks enable creators and their supporters to become investors. This aligns the interests of all parties involved and ensures that the value created is proportionately captured.

Furthermore, the rise of crypto networks and the ownership economy presents a significant opportunity for startups. Platforms that are built, operated, and owned by their users can experience rapid growth compared to their institutionally owned counterparts. This shift towards community ownership and network alignment is a paradigm shift in capitalism, making it more accessible and inclusive.

The ownership economy also addresses the issue of data ownership and value capture. Platforms like Facebook and Twitter have amassed vast amounts of user data, yet users do not directly benefit from it. In contrast, crypto networks enable users to have ownership over their data and participate in the value they generate. This empowers individuals and gives them more control over their digital presence.

As we navigate this new terrain, it is essential to address the legal protections for AI-generated content. The recent case of the comic book "Zarya of the Dawn" highlights the complexities surrounding copyright and AI. The U.S. Copyright Office revoked copyright protection for the images in the comic, arguing that the AI tool, Midjourney, was the "mastermind" behind the creation of the images.

This ruling raises important questions about the level of human input required for copyright protection. How can we determine if a piece of content was AI-assisted or not? Should tools that require more human effort, such as ControlNet, be treated differently in terms of copyright?

These debates will shape the future of AI-generated content and its legal protections. As technology continues to advance, it is crucial to find a balance that recognizes the contributions of both humans and AI in the creative process.

In conclusion, the better alignment of value creation and value capture is crucial in the digital age. Crypto networks and the ownership economy provide opportunities for creators to directly capture the value they generate, empowering them and their supporters. Startups can leverage these models to achieve rapid growth and community ownership. Additionally, the legal landscape surrounding AI-generated content needs to adapt to ensure fair and appropriate copyright protections. By embracing these changes, we can create a more inclusive and equitable digital ecosystem for all.

Actionable Advice:

  • 1. Embrace crypto networks: Explore ways to leverage blockchain technology and cryptocurrencies to directly capture the value you create as a creator. Consider selling your work directly to your audience and utilizing granular pricing models to maximize revenue per fan.
  • 2. Foster community ownership: Build platforms that prioritize user ownership and participation. By involving your users in the ownership and decision-making process, you can create a more engaged and loyal community that drives growth.
  • 3. Stay informed on AI and copyright: As AI continues to advance, it is crucial to stay up-to-date with the legal landscape surrounding AI-generated content. Understand the nuances of copyright protection and how it applies to your work. Stay informed on emerging tools and technologies that can assist you in the creative process while ensuring you maintain control over your creations.

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