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Risk Appetite

In this post, we discuss the setting-sun of subscription-based monetization — suggesting that fans now want to have more ‘skin in the game’ when it comes to supporting content — and how NFT’s are the perfect solution for people’s desire to speculate in the unlikeliest of places.

“I’ve been telling a handful of tradfi teams who are building for Defi why “risk appetite” profiling is important for them to target the crypto demographic better.”

“If you don’t know what yolo feels like, better get back to your IRA investing.”

Dovey Wan 12/21 Twitter Link

The crypto demographic wants skin in the game.

They want — at least — the potential for a 5X ROI.

Will they get it every time?

No. But the potential is key.

Because frankly, I’d love to read your Substack.

If I’ve arrived at your homepage, a promising link led me there.

So, you want $10 per month to access your essays and podcasts.

Ok, well I am very interested in the topic.

What else do I get out of it?

Oh, that’s it — nah, no thanks.

Now let’s re-frame the exchange

I show up at your Substack. I’m interested.

So you want me to purchase a limited-edition NFT that provides a lifetime subscription to your essays and podcasts — that I can potentially sell later a secondary market — possibly for a nice profit…

OK. Now I’m piqued.

I already wanted to read your content. Now, let me dig deeper.

How interested do I think other people would be to gain this exclusive access?

When I think about the future, how relevant is this content? How funny or engaging is this content?

How many of these NFT’s exist, will there be dilution?

Are there other perks to holding your NFT? You say there’s quarterly airdrops of tokens that can be used to acquire NFT clones that can be used to gift subscriptions to my friends?

You see where this is going…

Because, it’s a difference with an important distinction.

Subscribing is a passive endeavor — yes, I will pay to consume this media.

Whereas investing — yes, I will pay to consume your content AND take a leveraged position in your personality, content, community, etc.

“Yolo” “Risk appetite”

Subscribing is money-spent.

Investing is money spent with a chance of ROI and more.

And the content-creator gets a cut every time an NFT is sold on the secondary market, so the model can be sustainable without the need to increase inventory.

Like we are seeing with Netflix, traditional subscription plans are dying.

The idea that content can continue to be monetized in a 1:1 ratio — Ok, I give you the money, you give me the content — is fading.

People want more.

A new generation of people want more.

They want a seat at the table.

They want to participate among a community.

People are happy to put their energy into something that is growing and rewarding — both expanding horizons and growing real value.

There are many ways to design the architecture of a roadmap — many ways to incentivize continued support, growth and play-into different types of subscribers investors.

And importantly, the marketplaces are free — in the sense that you can come and go as you please.

You don’t like the direction the content has taken recently — no problem, sell out.

You love the direction the roadmap is headed — great, double down — buy three or thirteen more NFT’s.

NFT’s as an investment, mean that people take responsibility for their actions and investments. It’s a welcome change. It’s a process of learning about the types of communities you should and shouldn’t be getting involved in.

Is this a beautiful revelation for humanity — the increased Las Vegasification of everything?

Not really. Some tears will be shed.

But it’s fun. Risk is fun.

The crypto generation likes risk.

It doesn’t take long to understand the value proposition of limited edition NFT’s. You watch a marketplace for a week or two and it all clicks.

NFT’s are the future of monetizing content. Full stop.

Monetizing — while at the same time providing your community the opportunity to speculate and gain yield is the sweet spot for the future of Web3 media.

It’s also why Theta’s MetaChain Whitepaper is answering all the right questions at exactly the right time.