Sarah, a travel photographer with 80K followers, discovers her Santorini sunset in a Mercedes ad and gets paid exactly zero because the โI Acceptโ click granted Instagram a sweeping license to host, use, modify, display, create derivatives, transfer, and subโlicense her content globally, which is spelled out in the Instagram Terms of Use.
Platforms justify this as progress: hand over rights and data now and prosperity will โtrickle downโ later if creators clear monetization gates and policy hurdles, as the YouTube Partner Program overview and earnings rules make clear.
The creator economy grew into the hundreds of billions, but value concentrates at the platform/infra layer via data moats, distribution control, and rights centralization while creators absorb production and discovery risk, a pattern captured in reporting like the New York Timesโ look at Instagramโs pivot and creator fallout (feature).
Major platforms reserve broad licenses so uploads can be repurposed downstream without fresh negotiations, which is visible in the Instagram Terms.
AI training is the new extraction layer: user content feeds models under โservice improvement,โ enabling style replication without direct compensation, as explained in Scientific Americanโs analysis of data used to train generative models (overview).
Access is gated: 1,000 subscribers + 4,000 watch hours + policy compliance + AdSense linkage before ad share, per the Partner Program.
โ55/45โ split applies only to eligible ad revenue on qualifying content: Platforms still keep 100% of the audience graph, data profiling, algorithmic control, and nonโad value, as the earnings overview clarifies.
Doc Searls describes these oneโsided clickwraps as โcontracts of adhesionโ: accept everything or donโt participate, which normalizes nonโnegotiable terms at internet scale (essay; background interview).
Arbitration and jurisdiction friction: Make disputing payouts or rights expensive for individuals (AAA rules).
The โcreator tax stackโ is simple: platform cuts on eligible revenue + policy gates + data/AI capture + discovery volatility as formats pivot to suit platform priorities, which photoโled and SMB creators experienced during Instagramโs video pivot (NYT feature).
Programmable rights at mint: encode display vs. commercial use, remix revโshare, timeโbound licenses, and โno AI training,โ as demonstrated in the 0x ร Zora case study.
Sovereign social at the protocol layer: own account and graph, switch clients without losing followers, and transact value peerโtoโpeer, per the Farcaster docs.
True: Farcasterโs DAU is in the five figures, not massโmarketโbut thatโs ideal for highโintent conversion/community (see a representative Dune usage panel: Farcaster activity).
Use a practical qDAU proxy: Clean accounts that clear spam heuristics, appear on OpenRank/Rewards leaderboards, or hold Farcaster Pro; prospect directly by FID (see OpenRank leaderboards, Rewards winners board, and Farcaster Pro discussion).
Audit risk/rights and note where AI training/sublicensing is permitted (Instagram Terms).
Ship one programmable asset with โdisplay OK, commercial by request, AI training prohibitedโ (0x ร Zora).
Announce the โhome baseโ and pin email + Paragraph + Farcaster (Farcaster docs).
Launch one membership ($9) and a single sponsor slot; expand to $3/$18 after 30โday retention read.
Gate for quality by default (OpenRank > 0.5/0.7, Pro perks, Rewards prospecting) (OpenRank; Rewards board).
Track onchain capture rate, MRR by tier, D30/D60 retention, Farcaster follower quality (OpenRank/Pro share), and list growth; deprioritize any channel with <10% discovery or <5% revenue for two months.
Defaults beat lectures: make ownership feel like normal internet UX.
Donโt pretend Farcaster is mass media yet: Itโs the right middleโ/bottomโfunnel for 1,000 True Fans.
Programmable rights work: When culture and tooling honor themโencode, then package simply.
Why it matters: rented distribution is unstable and expensive; portability makes experiments cheap, reversals painless, and compounding possible again for creators.
Payments: fast/cheap rails make microโsupport and global members viable.
Distribution: the social graph is portable by default. (Farcaster docs)
Rights: assets carry own licenses and revenue splits onchain (0x ร Zora case study).
First moves: claim Farcaster as the โhome base,โ keep email/newsletter active, and publish at least one onchain, permissioned asset with explicit โdisplay OK, commercial by request, AI training prohibitedโ defaults (Farcaster docs, Zora overview).
Contract reality: broad, transferable, subโlicensable licenses are standard; revenue sharing is gated and narrow compared to the overall value captured (see Instagram Terms of Use, YouTube Partner Program, and YouTube earnings overview).
New extraction layer: creator content trains models without direct compensation under โservice improvementโ policies (Scientific American).
Ownership playbook: mint with programmable permissions and onchain royalties; route premium content, community, and payments to protocol social and email; start with a single $9 membership tier before adding $3 and $18 and one sponsor slot (0x ร Zora, Farcaster docs).
Important caveat (steelman): Farcaster is a highโintent conversion/community layer today, not mass topโofโfunnelโprospect quality via
Rentโfree era is practical now: creators can own identity, audience, and economics by splitting discovery on rented surfaces and value capture on owned rails anchored by portable identity and programmable rights (Farcaster docs, 0x ร Zora case study).
Biggest unlock is โpermissions at the assetโ and โportability at the accountโ: set the rules once at mint and move the audience once at the protocol layer, then let formats, clients, and marketplaces compose around those foundations (Instagram Terms of Use, Scientific American on AI training).
#AudienceOwnership #TrueFans #CreatorEconomy #PortableAudience #Farcaster #Base #USDC #ENS #DirectMonetization #TokenGatedCommunities #NFTMemberships #SmartContractSubscriptions #DecentralizedSocial #PortableSocialGraph #IPFS #Arweave #1000TrueFans #NetworkState #PlatformDependency
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Zach Harris
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TIL what Common Crawl and LAION are. Read here from @zachharris.ethโs new publication https://paragraph.com/@zachharris/stop-renting-start-owning-the-secret-contracts-that-rigged-the-creator-economy?referrer=0x3402AcA642DdB9C322872Dd84a3d4e2F1C17eFF2
๐ดโโ ๏ธ Most creators donโt sign ToS. ToS sign THEM. If platforms want your soul, charge rent. If they want your style, charge royalties. If they want your fans, change the rails. Spoiler Alert: Royaltyโfree. Transferable. Subโlicensable. Worldwide. Translation: You get exposure for a lot of value creation asymmetry. My second deep dive, revisiting 1000 true fans in 2025, explores this and more. Is about how to flip the contract. The profound implications of programmable IP when you own it and your relationships. Excited to hear people's thoughts publicly or privately. ๐ซก https://paragraph.com/@zachharris/stop-renting-start-owning-the-secret-contracts-that-rigged-the-creator-economy?referrer=0x3402AcA642DdB9C322872Dd84a3d4e2F1C17eFF2
@bbroad @eriks @zaal @pichi @geoffgolberg @niftytime.eth @monteluna @yth @kompreni @thatalexpalmer.eth โ next deep dive icymi
Didnโt know about this Zora and 0x before ๐ I like these deep dives
Thatโs why Newsletter is called TIL!
@w @web3pm @grunt @horsefacts.eth @aviationdoctor.eth @zoo @rev @sidshekhar @pauline-unik @jierlich second deep dive dropped today
@jachian @adam- @zef @igoryuzo.eth @coininsider @kmacb.eth @jonathancolton @artlu @christin @joanwestenberg.eth @adeyinka.eth second deep dive in case you have time! ๐๐ผ
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