$DEGEN has laid out the economics of Farcaster channels

Create a channel, build a community, launch a token, reward those who were early 

Use token as a karma system for being active

Use token as a channel currency for rewarding contributors and content

@warpcast became my home for social communication with great, talented and passionate people. $Degen channel became my Colony, filled with degens like myself.

This is more true than you know! The token subscription protocol exponentially rewards early subscribers with ETH rewards. A percentage of all of my subscription profits are withheld for subscriber rewards. First month subscribers 64x rewards. Second month, 32x and so on. Look up fabric STP docs. A UI is coming

yes. once token-gated channels are a thing (🤞) hosts will be able to enable this in mere minutes, without any code or galaxy brain tokenomic design

Principal at Cobalt Ventures. Write @ TheItinerant.io ; BenErsing.com Host: /venturecapital /finance /adventures

yes. once token-gated channels are a thing (🤞) hosts will be able to enable this in mere minutes, without any code or galaxy brain tokenomic design https://warpcast.com/mxjxn.eth/0x4388fbb8

I don’t think it’s particularly insightful because it’s not particularly repeatable.

$DEGEN worked because it captured a lot of the FC mindshare. People actually contributed and proliferated the community until it reached “escape velocity”.

I don’t think that’s possible for every channel.

building @hypeshot 
ycs22 
uchicago baseball ‘19

How would that sustain in the long run though?
You can be actively engaged in ~5 communities but the incentives are placed for people to spin up and jump to new channels to print/farm tokens. There will be few successful examples, everything else will be a spike and slow bleed to zero (both engagement and token price)

https://warpcast.com/capitulation/0x07604b93

Well if you throw a financially driven token you’ll attract mostly the degen crowd! Which can be good and not so good at the same time.

Not sure if token is needed to grow this app and should be optional for users.

However yes, rewarding systems are very welcome

The first thing I ask any founder or friend considering a token is “why?”

Are you a product or service, or are you a financial asset play? Both are tough. One has pirates.  

The beauty of FC is you can already drop incentives to wallets. Why do you need to be JPow? Better yet, why do you want to?