Power laws run the world. In almost every industry, a small percentage of players capture nearly all of the opportunity. Think about it—1% of people hold 99% of the wealth. The same dynamic plays out in music: 1% of artists get 99% of the streams. And in venture capital, the top 1% of funds rake in 99% of the returns.

This isn’t just a stat; it’s reality. And the power law is getting worse, more extreme, and it’s everywhere. Protests outside Spotify’s offices. Strikes in Hollywood. We’re watching frustration boil over in industries that have begun to feel rigged and impossible to break through. It’s one thing if you don’t become a rockstar, but it’s a much larger issue if these power laws continue to drive further wealth divides in society—anyway, back to tech.

I’ve been thinking a lot about these ideas and have raised the question: Is this just human nature? Are power laws inevitable, or could something—like Web3—change the game? Personally, I believe Web3 may be a solution here. It’s part of why I joined JPG back in 2021—to contribute to a startup innovating and advancing Web3 technology.

Let’s jump back a step though. Why do power laws exist? There are many factors at play, but in my opinion, it comes down to something pretty simple. Humans imitate. French Historian / Philosopher René Girard called this mimetic desire—we want what others want. We see it everywhere. Why do people flock to the same TV shows, shoes, or celebrities? We imitate each other’s desires, and suddenly, the few are winning big while the rest scramble for scraps.

Technology has made the world ever more global—we have access to the same products, media, and ideas in every country. Kyle Chayka discusses this topic beautifully in his book Filterworld: How Algorithms Flattened Culture, describing how the algorithmic recommendations provided by major tech platforms have created a global and homogenized culture.

These algorithms push the most popular content to the top, making sure the winners keep winning. What goes viral only goes more viral. Platforms like Spotify, Instagram, and TikTok all work the same way—if you're not already big, good luck breaking through.

And the more globalized the world gets, the more this mimetic cycle tightens. One viral trend? The entire world chases it. One top artist? Everyone listens. It’s no surprise the power law feels unstoppable.

Nowhere is this more obvious than in the music industry. Everyone wants to be the next big artist, but very few make it. Platforms like Spotify make this worse. Sure, they provide distribution, but only a few artists get featured in playlists or algorithmic recommendations. The system feeds into the power law. If you're not in that 1%, you’re stuck.

So, enter Web3—if you participated in the Web3 boom of 2022, you saw that the long tail of creators in almost every industry—be it music, writing, or video—flocked to open decentralized platforms, promising a way to break out of the centralized control of platforms like Spotify, YouTube, or TikTok.

Here’s the pitch: Web3 lets creators own their content—instead of their content being owned by the platforms they freely publish it on. NFTs, blockchain, smart contracts—these are the tools that put power back in the hands of creators. Forever. And fans don’t just consume; they become part of the creative ecosystem, fueling new revenue streams like royalties and ownership stakes.

Jared Hecht, an investor at USV, and previously founder of GroupMe & Fundera, lays it out web3s improvement economic potential in his essay Curiosity Networks: In a Web3 world, creators aren’t fighting for a spot on a centralized platform. They’re building their own networks and getting rewarded for every contribution. With decentralized ownership models, niche communities could thrive, allowing artists to make a living without needing to go viral. Web3 could open new doors for creators, letting them capture value in ways that centralized platforms never allowed.

But here’s the real question: Can Web3 truly escape the power law, or will it just create a new version of it?

There’s a very real chance Web3 could still concentrate power—just with different players. Early adopters of NFTs, crypto-savvy creators, and those with massive social followings could still dominate. Check out OpenSea—we simply have a new gatekeeper who can only promote so many NFT collections. And the result? The big featured drops, marketed by a centralized company, sell out fastest. Power law—hello, old friend. So, the question remains: Will Web3 level the playing field for all, or simply shuffle the deck of who controls it?

And what happens as these decentralized networks grow? Will they face the same pressures of scale and attention that centralized platforms do? Or can they somehow preserve the balance between creator empowerment and audience growth?

The tension between centralization and decentralization is at the heart of all of this. We’re seeing this tug-of-war play out everywhere—from tech platforms to creator networks. Web3 offers a compelling vision of decentralization, but there’s no guarantee it will be enough to win.

So, can Web3 break the power law? Maybe. But we’ll need to see if it’s enough to overcome human nature—and the algorithms that drive our desires. I, for one, am optimistic and passionate about many companies innovating in these industries—both in the context of creators and broader industries like energy, commerce, and finance.

If any of these ideas resonate with you, or you are building a startup with aligned values—I’d love to chat or grab coffee in NYC.

Power laws run the world. In almost every industry, a small percentage of players capture nearly all of the opportunity. Think about it—1% of people hold 99% of the wealth. The same dynamic plays out in music: 1% of artists get 99% of the streams. And in venture capital, the top 1% of funds rake in 99% of the returns.

This isn’t just a stat; it’s reality. And the power law is getting worse, more extreme, and it’s everywhere. Protests outside Spotify’s offices. Strikes in Hollywood. We’re watching frustration boil over in industries that have begun to feel rigged and impossible to break through. It’s one thing if you don’t become a rockstar, but it’s a much larger issue if these power laws continue to drive further wealth divides in society—anyway, back to tech.

I’ve been thinking a lot about these ideas and have raised the question: Is this just human nature? Are power laws inevitable, or could something—like Web3—change the game? Personally, I believe Web3 may be a solution here. It’s part of why I joined JPG back in 2021—to contribute to a startup innovating and advancing Web3 technology.

Let’s jump back a step though. Why do power laws exist? There are many factors at play, but in my opinion, it comes down to something pretty simple. Humans imitate. French Historian / Philosopher René Girard called this mimetic desire—we want what others want. We see it everywhere. Why do people flock to the same TV shows, shoes, or celebrities? We imitate each other’s desires, and suddenly, the few are winning big while the rest scramble for scraps.

Technology has made the world ever more global—we have access to the same products, media, and ideas in every country. Kyle Chayka discusses this topic beautifully in his book Filterworld: How Algorithms Flattened Culture, describing how the algorithmic recommendations provided by major tech platforms have created a global and homogenized culture.

These algorithms push the most popular content to the top, making sure the winners keep winning. What goes viral only goes more viral. Platforms like Spotify, Instagram, and TikTok all work the same way—if you're not already big, good luck breaking through.

And the more globalized the world gets, the more this mimetic cycle tightens. One viral trend? The entire world chases it. One top artist? Everyone listens. It’s no surprise the power law feels unstoppable.

Nowhere is this more obvious than in the music industry. Everyone wants to be the next big artist, but very few make it. Platforms like Spotify make this worse. Sure, they provide distribution, but only a few artists get featured in playlists or algorithmic recommendations. The system feeds into the power law. If you're not in that 1%, you’re stuck.

So, enter Web3—if you participated in the Web3 boom of 2022, you saw that the long tail of creators in almost every industry—be it music, writing, or video—flocked to open decentralized platforms, promising a way to break out of the centralized control of platforms like Spotify, YouTube, or TikTok.

Here’s the pitch: Web3 lets creators own their content—instead of their content being owned by the platforms they freely publish it on. NFTs, blockchain, smart contracts—these are the tools that put power back in the hands of creators. Forever. And fans don’t just consume; they become part of the creative ecosystem, fueling new revenue streams like royalties and ownership stakes.

Jared Hecht, an investor at USV, and previously founder of GroupMe & Fundera, lays it out web3s improvement economic potential in his essay Curiosity Networks: In a Web3 world, creators aren’t fighting for a spot on a centralized platform. They’re building their own networks and getting rewarded for every contribution. With decentralized ownership models, niche communities could thrive, allowing artists to make a living without needing to go viral. Web3 could open new doors for creators, letting them capture value in ways that centralized platforms never allowed.

But here’s the real question: Can Web3 truly escape the power law, or will it just create a new version of it?

There’s a very real chance Web3 could still concentrate power—just with different players. Early adopters of NFTs, crypto-savvy creators, and those with massive social followings could still dominate. Check out OpenSea—we simply have a new gatekeeper who can only promote so many NFT collections. And the result? The big featured drops, marketed by a centralized company, sell out fastest. Power law—hello, old friend. So, the question remains: Will Web3 level the playing field for all, or simply shuffle the deck of who controls it?

And what happens as these decentralized networks grow? Will they face the same pressures of scale and attention that centralized platforms do? Or can they somehow preserve the balance between creator empowerment and audience growth?

The tension between centralization and decentralization is at the heart of all of this. We’re seeing this tug-of-war play out everywhere—from tech platforms to creator networks. Web3 offers a compelling vision of decentralization, but there’s no guarantee it will be enough to win.

So, can Web3 break the power law? Maybe. But we’ll need to see if it’s enough to overcome human nature—and the algorithms that drive our desires. I, for one, am optimistic and passionate about many companies innovating in these industries—both in the context of creators and broader industries like energy, commerce, and finance.

If any of these ideas resonate with you, or you are building a startup with aligned values—I’d love to chat or grab coffee in NYC.