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Add monetization

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Jay Graber 2020-06-30 17:00:11 -07:00
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@ -10,37 +10,39 @@ Protocols must be open source in order to be used and adopted. Applications buil
Advertising
- Charge advertisers for user impressions or clicks through the applications
- Users can pay to not be shown ads
In-app purchases
- Charge for promoted tweets
- Charging for custom curation or moderation services, or taking a cut of monetized services offered by third-parties.
Transaction fees on
- User monetization of premium content
- User tips and donations
Premium experience
- Users can pay to not be shown ads
# Provider Level
If applications access the provider, (as in Solid, where applications access user data through pods), the provider can charge a commission of the revenues of each application.
If applications access user data through a provider, (as in federated systems where a user signs up to a server, or in Solid, where applications access user data through pods), the provider can have a separate business model from the application.
If users access the provider (as in federated systems where a user signs up to a server), the provider could charge the user a fee, perhaps for premium features like extra storage. Up-front membership fees for users tend to discourage adoption of social applications, where users have come to expect free service.
- Charge a commission of the revenues of each application.
- Charge users a membership fee. (However, up-front membership fees for users tend to discourage adoption of social applications, where users have come to expect free applications.)
- Charge users for premium features like extra storage.
## Protocol Level
Protocol level business models have been explored in recent years through cryptocurrencies.
One method is the creation of a token used for transactions internal to the protocol. An example is Facebook's Libra.
One method of protocol-level monetization is the creation of a token used for transactions internal to the protocol. Facebook's Libra, which will allow users to send payments to each other, is an example of this approach. Brave browser created [BAT, Basic Attention Token](https://basicattentiontoken.org/), for transactions between publishers, advertisers and users. Advertisers pay in BAT to place ads. Publishers receive most of the BAT from ad revenue and Brave takes a percentage. Users of Brave browser earn BAT when they view ads. They can't withdraw it, and instead can only donate it to publishers of their choice. According to Brave's research, in 2020, Users could earn up to $200 by consuming ads. Publishers haven't been vocal about their earnings, but [freecodecamp have said that they earned $2000 between early 2018 to mid 2019.](https://www.freecodecamp.org/news/the-brave-browser-how-much-money-can-your-website-make-as-a-publisher/).
Existing cryptocurrencies can also be used for protocol-level business models.
Existing cryptocurrencies can also be used for protocol-level business models. Brave originally used Bitcoin instead of BAT for in-browser micropayments. In a server-based federated system, servers that provide services to the network could also function as Lightning hubs that route Bitcoin payments through the social graph using payment channels, and collect fees for doing so.
Servers could function as Lightning hubs that route Bitcoin payments through the social graph using payment channels, and collect fees for doing so.
Namespaces are a limited resource across a common protocol. For this reason, business models could be developed around username registrations, like how domain names are sold on the web. Currently, Twitter prohibits the trading of usernames, but a [black market has emerged](https://www.theguardian.com/technology/2018/apr/17/selling-twitter-handles-big-business-identity) anyways, illustrating the latent demand for good names. Legitimizing a username marketplace could be one method of monetization for a decentralized Twitter.
Sell username registrations
## Links
https://blog.ethereum.org/2014/04/30/decentralized-protocol-monetization-and-forks/
[Decentralized Protocol Monetization and Forks](https://blog.ethereum.org/2014/04/30/decentralized-protocol-monetization-and-forks/)
https://avc.com/2016/07/the-golden-age-of-open-protocols/
[The Golden Age of Open Protocols](https://avc.com/2016/07/the-golden-age-of-open-protocols/)