🥲 bad incentives ruined the internet

However, today’s platforms abuse human psychology by manufacturing experiences that use variable reward schedules, where rewards are delivered intermittently and randomly, with the intention of maximizing users’ response rate.

The internet phenomenon that is Wikipedia does not use “straightforward rewards” as the basis of its incentive system. Millions of people contribute to the online encyclopedia, but aren’t incentivized to do so through explicit reinforcement.

Should you implement a model that enables users to pay the creator or to pay for their content? In most cases we’ve seen, paying for the creator is more effective.

Although this incentive system is effective for those willing to put in the work, Wikipedia remains prominently written by only 1% of its contributors and similar to most content platforms, a majority of users spend their time as “lurkers” or “free riders.” This crucial conversion from “passive” to “active” comes down to the fulfillment of our need... See more

YouTube, Facebook, Twitter, TikTok — and other ads-backed platforms — define north star metrics around maximizing the time we spend within the bounds of their walled gardens. The platforms’ incentives hinge on the need for as many eyeballs as possible on ads. Hence, their algorithms sift through to assign a higher weighting on content that captures... See more

We’re in a constant battle to find our own sense of identity within the overarching internal values of the scene we want to belong to, and on that journey we’re incentivized to continuously prove our allegiance (“fanship”) and how we’re ‘in the know’.

The most interesting part of Cent’s iterations was the move from seeding posts to seeding creators. We’d highly recommend reading through their decision to do this, but in short, seeding posts “didn’t make enough people enough money enough of the time”.

The main reason for the harm today’s internet platforms cause is the misalignment in incentives between users, creators & the platforms — or demand, supply and platform incentives. And a lot of it comes down to advertising-based business models.

It is vital that we build platforms that enable degrees of self-expression and self-protection, but we must place guardrails to ensure we’re encouraging positive behaviors.