
Meet Alex Chen, a portrait photographer with 120K Instagram followers. When Instagram announced its Reels pivot in 2021, Alex did what the platform told her: she learned video editing, bought new gear, and pivoted her entire content strategy. Six months later, her engagement was down 70%.
Why? The algorithm had already moved on to the next format experiment. Meanwhile, her original audience—people who followed her for stunning portrait photography—had stopped seeing her posts entirely because the feed now prioritized short-form video from accounts that specialized in it.
Fun Fact: When Instagram announced "we're no longer a photo-sharing app" in 2021, photographer reach dropped so dramatically that The New York Times ran a feature titled "A New Refrain From Artists: We 'Almost Gave Up on Instagram.'" Multiple professional photographers reported losing 80-90% of their organic reach within weeks of the pivot.
This is digital sharecropping: the more you adapt to platform demands, the less control you have over your own output, audience, and income. You work harder, they profit more, and your share shrinks over time.
Here's the counterintuitive reality: increasing content output often decreases income per piece because platforms absorb the learning and control discovery while creators absorb production risk and format churn.
TIL: Studies of creator economics show that the top 1% of creators capture approximately 75% of platform revenue, while the bottom 90% earn less than minimum wage when you calculate hours worked versus income received. Yet platforms market "democratization" while the actual economics look more like a lottery where the house always wins.
The math is brutal:
More content = more data for the platform's recommendation engine
Better recommendations = more time on site = more ad revenue
Creators who "teach the algorithm" by posting frequently get... the privilege of teaching it more
Meanwhile, the platform can:
Cut your reach anytime with an update
Change monetization thresholds without notice
Pivot formats, making your expertise obsolete
Use your content to train AI that competes with you
Platforms run the same playbook every time:
Phase 1: The Honeymoon (Get you hooked)
Early users get algorithmic boosts. Reach feels organic and growing. Monetization seems accessible. The platform needs creators to compete with other platforms, so they shower you with attention.
What you see: "This is amazing! I grew 10K followers in a month!" What's happening: The platform is subsidizing your reach to build network effects.
Phase 2: The Hook (Lock you in)
Once you're dependent, things shift:
Organic reach gradually decreases (from 10-15% in 2020 to 2-3% by 2025)
Monetization thresholds increase
Pay-to-play becomes the norm (promoted posts, boosts, ads)
The YouTube Partner Program requirements keep rising
What you see: "Why isn't my content performing like it used to?" What's happening: Your audience is still there. The platform just won't show them your content unless you pay or produce what serves their current strategic priority.
Phase 3: The Extraction (Squeeze maximum value)
Now the platform has leverage:
Algorithm changes favor their latest strategic bet (Reels, Shorts, whatever's next)
Creators who don't pivot lose eligibility or reach
Your audience is held hostage to platform distribution
AI training repurposes your work without compensation
What you see: "I have to completely change my content to survive here."
What's happening: You're optimizing for the platform's business model, not your audience's needs.
Beyond the obvious revenue cuts, platforms extract value through:
Your creative process itself
Upload frequency patterns
A/B testing you do for free
Audience response data
Content iteration cycles
All of this teaches the algorithm what works—knowledge the platform keeps while you rent access to it.
Your audience relationships
Who engages, when, and how
Purchase behavior signals
Demographic and psychographic data
The complete social graph around your work
Platforms understand your audience better than you do, then use that knowledge to compete with you.
Your content as AI training data
Style replication without attribution
Technique extraction at scale
Genre and format learning
Voice and aesthetic modeling
Your work trains systems that will generate content "in your style" and compete for the same audiences and budgets.
Fun Fact: When OpenAI trained DALL-E, they used hundreds of millions of images scraped from the internet—many from creator portfolios posted on Instagram, Behance, and DeviantArt. Creators received zero compensation, zero attribution, and zero say in whether their work was included. The resulting AI now competes with them for stock photo budgets, editorial illustration gigs, and commercial design work.
Portability flips switching costs
On platforms: Your audience is trapped. Moving means starting from zero. On protocols: Your audience moves with you. Experimentation has bounded downside.
Farcaster's protocol design means your followers are yours. Switch from Farcaster to Base or to any other client, and your audience comes with you automatically.
Programmable rights flip risk allocation
On platforms: Grant broad licenses; hope for fair treatment later.
On protocols: Set explicit permissions; enforce them with code.
"Display OK, commercial use requires 50% revenue share"
"AI training prohibited unless licensed separately"
"Remix allowed with attribution and 10% royalty"
"Rights expire in 12 months unless renewed"
The asset carries its own terms. No PDF negotiations. No platform policy updates that change the deal retroactively.
Direct monetization removes the middleman tax
On platforms: 30-45% platform cut + payment processing + eligibility gates
On protocols: Near-zero transaction fees + no qualification thresholds
A $10 membership on Patreon costs the fan $10, but the creator receives ~$8.50 after fees. A $10 membership via USDC on Base costs $10, creator receives $9.99+ after minimal gas.
Over 1,000 True Fans, that's $1,500-$2,000 annually back in your pocket instead of platform infrastructure. Those chump change fees compound into real money in the bank.
TIL: When people cite "millions of connected wallets" on Farcaster, they're confusing potential with reality. Actual daily active users are measured in five figures, not millions—and that's actually a feature, not a bug, for creator economics.
Here's why small, quality-gated DAU beats large, spam-filled DAU:
Quality signals on Farcaster:
OpenRank reputation scores that filter spam
Farcaster Pro subscriptions (~$120/year) signal commitment
Rewards leaderboard placement shows credible participation
Neynar spam scores >0.7 indicate real, engaged humans
How to use it strategically:
LinkedIn/X/YouTube = top of funnel (awareness at scale)
Farcaster = middle/bottom of funnel (conversion of high-intent participants)
Email = retention and owned communication layer
Don't expect Farcaster to replace Instagram's reach. Expect it to convert your most valuable participants at 10-100x the ARPU of casual followers.
Fun Fact: The average Farcaster user holds $12,000+ in onchain assets per connected wallet—a dramatically higher "wallet density" than typical social media users. For creators building 1,000 True Fans, this means you need fewer people to hit revenue goals because each participant has both a higher willingness and ability to pay.
Discovery stays on rented rails
Post native teasers on Instagram, LinkedIn, X, YouTube
Use these as awareness and top-of-funnel
Optimize for reach, not revenue
Depth moves to owned rails
Full versions, behind-the-scenes, AMAs on Farcaster
Premium content, early access on email/newsletter
Gated community and member perks on owned channels
This lets you use platform distribution without depending on platform monetization.
$3/month - Starter tier
Access to community discussion
Early notification of drops
Monthly Q&A participation
Goal: Validate willingness to pay; build baseline MRR
$9/month - Core tier
Everything in Starter
Full drops and behind-the-scenes
Monthly member-only content
Direct access for questions/feedback
Goal: Where most revenue lives; optimize for retention here
$18-25/month - Backstage tier
Everything in Core
Vote on upcoming content/direction
1:1 or small-group sessions quarterly
Revenue share experiments and co-creation
Goal: Deepen relationship with superfans; test aligned incentives
Use reputation signals to reduce spam and increase conversion:
OpenRank thresholds
Require >0.5 or >0.7 scores on Frames or gated drops
Automatically filters bot accounts and spam
Pro-first access
Offer Farcaster Pro subscribers early access or exclusive perks
These users who already paid for this are more likely to pay you
Rewards cohort prospecting
Use the Farcaster Rewards leaderboard to identify credible participants
Invite them directly by FID for beta tests, collabs, or founding memberships
Not every creator should go sovereign right now
If your genre depends on broadcast virality (comedy, news commentary, viral moments), platforms still offer superior top-of-funnel.
Run hybrid: use platforms for discovery, own channels for monetization.
Ownership without packaging still fails
Fans don't care about "rails" or "protocols." They care about:
Clear value propositions
Reliable cadence and quality
Perks they'll actually use
Feeling like insiders, not customers
The infrastructure only matters if it delivers better experiences and economics. Obsess about the offer, not just the ownership.
Don't overfit to current tools
The point of portability is making pivots cheap. If a client, Frame format, or pricing model isn't working, change it quickly. Treat sunk costs as tuition, not anchors.
Platform hybrid can be optimal
Some creators genuinely earn more by playing the platform game well—high-performing ad accounts, lucrative brand deals, and exceptional algorithmic understanding. For them, sovereignty might be insurance, not a primary strategy.
That's fine. Build the owned channel as a hedge, not a religion.
Fun Fact: The phrase "sharecropping" originally described a system where freed slaves farmed land owned by former plantation owners. Workers kept 50% of the crop (on paper) but landowners controlled all inputs, credit, and market access—ensuring perpetual debt.
Sound familiar?
TIL: Instagram's algorithm change in 2016 (from chronological to algorithmic feed) caused such immediate reach decline that a Change.org petition asking for chronological feed back got 300,000+ signatures. Instagram ignored it and doubled down on algo control.
Fun Fact: When TikTok launched its Creator Fund, early participants celebrated getting "paid for views." Then they noticed their view counts dropped significantly after joining. The fund created an inverse incentive: TikTok showed enrolled creators' content to fewer people to control payout costs while still claiming to "support creators."
TIL: The average creator needs to hit approximately the 95th percentile of their platform to qualify for any direct monetization. Meanwhile, that creator's content generates value for the platform from view #1—just not for the creator.
You can keep optimizing for algorithms that change monthly, or you can build on rails that you control.
The productivity paradox breaks when you own the relationship: more creation = more direct value to your audience = more sustainable income. No middleman adjusting the split. No algorithmic gatekeeper deciding your reach. No format pivot making your expertise obsolete overnight.
Start with one tier. Gate one drop. Prospect ten people. Measure actual revenue per participant, not likes per post.
The sharecroppers who became landowners didn't wait for permission. They built alternatives that made extraction obsolete.
Talk is cheap, and actions speak louder than words. Time to revisit Grapes of Wrath with a fresh set of eyes. Your audience is counting on you.
#CreatorEconomy #AlgorithmicBias #DigitalSharecropping #OwnYourAudience #ProtocolNotPlatform #Farcaster #OnchainCreators #Web3Social #OpenRank #Zora #AITrainingConsent #AIAndCreativity #EthicalAI #AICompetes #Monetization #1000TrueFans #DirectToFan #MemberDriven #PlatformEconomics #AttentionEconomy #ReachVsRevenue #Portability #ProgrammableRights #SovereignCreatorship #TopOfFunnel #ARPU #QualityOverQuantity #SpamResistance
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All comments (17)
Sharecroppers of the Algorithm: The More You Create, the Less They Pay - In-depth critique of Web2. excellent work @zachharris.eth
Thank you, sir. Appreciate it.
Good information
“There ain't no sin and there ain't no virtue… just stuff people do.” - John Steinbeck, The Grapes of Wrath -- From sharecropping feeds to digital sovereignty in your cup. Traditional social taxes your work and rents your audience back; decentralized social pays the creator first. Think Grapes of Wrath for 2025: name the extraction, walk off the farm, keep the crop. Here's the third deep dive in Revisiting 1000 True Fans in 2025. I'm excited to hear what you think in public and private. 🫡
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This is a good write up on the problems with existing platforms. I would add that even the top 1% are at risk as they try to negotiate higher prices and are subsequently down ranked by the algos (which prioritize highest ROI content for the themselves vs the viewer). DeSo isn’t quite as open as you make it though. A creator can’t simply rage quit clients if their followers are still on the “bad” client and getting that client’s algo. It makes the social graph open, which is a start, but not necessarily reachable, and thus the client can still function as an intermediary. It would be neat if DeSo could solve the messaging problem so that email isn’t the only way to ultimately guarantee reach for creators.
That's very valid. The caveat should be on the protocol level, not to client level. You're absolutely right. And I agree with you RE email. That's why I like that Base is using XMTP for DMs vs Farcaster. But it would be cool if there was an RSS like feature for XMTP to subscribe in a permissionless way…
@jachian @adam- @zef @igoryuzo.eth @coininsider @jonathancolton @kmacb.eth @mrbriandesign @thebestpizza.eth @zoz.eth @zoo icymi
One small hair splitting issue: “Farcaster's protocol design means your followers are yours.“ You don’t own me. I follow you. Not the other way around.
Oh, common… you know that I live rent free all the time in your /shower-thoughts
Think about you & @lambchop one time in there & forever it’s remembered 🤭
I'm gonna start calling you Donna, ser https://open.spotify.com/track/3FlOciKDqFlTMPeC7t92Qy
“small, quality-gated DAU beats large, spam-filled DAU” That’s a banger Also TIL that the average wallet is $12K (I assume heavy negative skew, but still)
gm
Good morning my friend
Discover insights from @zachharris.eth on the shifts facing digital creators as platform dynamics change. In the latest blog post, learn about the struggles faced by portrait photographer Alex Chen during Instagram’s transition to video content and the ensuing decline in organic reach. There's a looming concern of digital sharecropping where creators produce more but see diminishing returns. Pivot strategies are explored, emphasizing direct monetization on protocols like Farcaster, while ensuring creators can maintain true ownership over their audience and earnings.