• Gigi’s article, “The Freedom of Value,” breaks down the issue of monetizing online content into two distinct reasons, the “MTX problem” and the “DRM paradox.”
• The “MTX problem” refers to the irreducible mental transaction costs inherent to every transaction, while the “DRM paradox” states that content will only stay behind paywalls if it sucks.
• This article respectfully challenges the idea that paywalls versus #value4value is an all or nothing situation and proposes the possibility of other solutions to the MTX problem.
Paywalls versus #value4value has become a hot topic of debate in the crypto and content creation communities. Many members of the crypto community have argued that paywalls are the only way to properly monetize content, while others have proposed the concept of #value4value, or exchanging value directly for content. In Gigi’s article, “The Freedom of Value,” he breaks down the issue of monetizing online content into two distinct reasons, the “MTX problem” and the “DRM paradox.”
The “MTX problem,” with MTX being short for “mental transaction,” refers to the problem of irreducible mental transaction costs inherent to every transaction. Every time you hit a paywall, you have to make a conscious decision: “Do I want to pay for that?” This problem is not only faced by consumers, but also by content creators, as it is a lot of work to write good content, and they don’t want to work for free.
The “DRM paradox” states that content will only stay locked behind paywalls if it sucks. If it’s good, it will be set free. This paradox is a tricky one, as content creators don’t want their work to be stolen and redistributed, but they also don’t want to put a paywall up and risk no one paying for it.
Gigi acknowledges that the “DRM paradox” has no solution and that the “MTX problem” is a bigger deal than the “DRM paradox.” This article respectfully challenges the idea that paywalls versus #value4value is an all or nothing situation and proposes the possibility of other solutions to the MTX problem.
One potential solution is to use a subscription model for content creators. This would allow for content to be released for free, but access to the entirety of the content would require a subscription. This model would allow people to sample content, but if they want to access the whole thing, they would need to pay. This way, content creators are still able to get paid for their work, but they aren’t putting up a paywall and risking not making any money.
Another potential solution is to use a “freemium” model. This model would allow content creators to release some of their work for free, while other content would require a payment to unlock. This would give people a chance to sample the content before deciding to pay for it, and it would also reward people who pay for the content with exclusive access.
Finally, another potential solution is to use cryptocurrency-based micropayments for content. This would allow content creators to charge small amounts for their content, which would be less off-putting for potential customers than a large paywall. This would also allow for content creators to charge for content without having to put up a paywall, as the payment would be processed instantly.
Paywalls versus #value4value is an important debate, and both sides have valid points. However, it is important to remember that this is not an all or nothing situation. There are other solutions to the “MTX problem” that can provide content creators with a way to monetize their work while still allowing customers to access their content. With the right models in place, content creators and customers can both benefit from the exchange of value.