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147 sats \ 0 replies \ @didiplaywell 17 Nov \ on: A Theory of Everything for Zaps? meta
Anything that mimics a real market (p2p, v4v) will work. Maybe the question is "where do SN differs from a real market, so that it provides undesirable incentives?". How will SN differ? In a real market every interaction is equilibrated, for you can only interact via v4v. So wherever there's no v4v, quality will degrade.
For example: low quality content in Nostr is being caused due to zero initial investment that can potentially lead to apparent effortless gains. But the risk to try is zero so even if it doesn't work it's a no-brainer to try just in case.
In social networks where there's no immediate economic revenue, there's nothing like "try just in case", and at most you have to spend great effort to attract a large enough audience to even start being able to make money. So at first zero risk is found with zero gains. This is a special case of v4v where costs are equally 0, so v4v transitions to content/reaction: you write to get a reaction you consider worthy. You give content to get content back.
In the case of SN, zap gains are equilibrated with the fact you have to spend to post. Having a high enough initial risk, the v4v in terms of money is equilibrated enough, so that v4v in terms of content/reaction is more independent of an imbalance in v4v in terms of money (Nostr is still imbalanced), prompting good quality content back again.
Follow the market. Exchange equilibrium is the maximum law. Anything else follows suit.