Degen

MICRO TRANSACTION META

1) We're seeing an increasing number of products take advantage of micro-transactions. See: Warpcast Tipping, @ampsfun, @warpslot, etc.

2) This shift is caused by several converging trends: low gas fees, social identity tied to wallets, and an influx of liquidity (e.g. Warpcast Rewards) that lets users play with "house money". 

3) As txn fees have dropped, new products are emerging that target markets that were previously unavailable due to high fees. See chart below.

4) Warpcast's social graph and product architecture means that users now receive notifications when they are paid, further increasing the virality of products that help users pay each other.

aren’t microtransactions just spam? projects have been dusting wallets forever to get attention. sending someone tokens on Farcaster doesn’t mean they’ll care—people sent me Warps, I ignored them. unless there's utility or context, microtransactions = noise.

No?

Obviously projects that send you incredibly small amounts of random tokens are spam. That’s not what I’m describing.

The shift here is that lower fees allow builders to unlock markets where the average transaction size is small. It didn’t make sense to send someone $1 on ETH mainnet when gas costs were multiples of that. With L2s, it’s now possible to create products where you can charge small amounts for your good or service and not get nailed by high costs. 

Of course, you still need to make up for it in volume to have a viable business, but that’s just economics.

Elevating onchain creators @brightmoments @ampsfun @nodefoundation