Here is my thesis.
Proposal for Monetization and Spam Reduction on Nostr
After reflecting on the challenges Nostr faces with spam, I believe a solution lies in introducing small, transaction-based fees for certain actions on the network. By charging a tiny amount of Satoshis for activities like commenting, following, and sending direct messages (DMs), we can significantly reduce spam, as spammers will be less incentivized to flood the network with low-effort interactions.
Key Ideas:
Charge for Comments, Following, and DMs:
Commenting on someone’s note: A small fee of 1 Satoshi or even 1 microSatoshi could be charged for leaving a comment on someone’s note. This would discourage spam bots or malicious actors from posting unwanted comments.
Following a user: Similarly, a tiny fee for following someone would reduce the likelihood of spammy follow-unfollow tactics.
Sending Direct Messages (DMs): Charge a minimal amount to send DMs, reducing the incentive for spammers to mass-send messages.
By implementing such charges, the financial barrier for spam activities becomes significant enough to deter spammers who typically rely on bulk, low-cost actions.
How Much to Charge?:
I propose charging 1 Satoshi or 1 microSatoshi for each of the actions above. MicroSatoshis would be particularly effective because they allow for very small but measurable interactions that don’t pose a significant burden on legitimate users while still deterring spam.
Revenue Distribution:
Relays:
The revenue generated from these transactions could be split among the relays on a user’s list. For example, if a user has 15 relays, each relay would receive a share of the fee collected from actions like commenting or following.
Clients:
The client software (e.g., the app you’re using to access Nostr) should also receive a portion of the revenue. This incentivizes developers to improve the user experience and the overall quality of the Nostr network.
How Would This Benefit Users and Operators?:
Incentivizing relays:
This system provides financial incentives for relays to improve and maintain their services. The more relays a user adds to their list, the more revenue each relay receives.
Encouraging fewer relays on a list:
By limiting the number of relays, users can potentially increase the amount of Satoshis each relay earns, encouraging both efficiency and performance.
Incentivizing clients: With revenue sharing, clients (apps or interfaces that users interact with) are also incentivized to optimize the user experience and encourage responsible usage.
Media Servers:
As for media servers, they could also receive a share of the revenue. Sites like 'nostr.build' are already taking steps to make money by improving their media hosting capabilities. By showing how much of the microSatoshi goes to media servers for uploads, we can help users understand the cost structure and support the growth of these services.
Over time, uploading media for free could become unsustainable, and this model would naturally evolve to reflect the true costs of providing such services.
Progressive Implementation:
I recommend starting with a free or very minimal fee structure during the early stages of Nostr's growth. As more users join and the Lightning Network becomes more widely adopted, we can gradually increase the fees.
Phasing in monetization:
Initially, the platform should focus on education around the Lightning Network and its benefits, as many users are still unfamiliar with it. Gradually introducing these small fees will help users transition from the "everything is free" mindset toward one that acknowledges the value of the services provided.
Fairness and Transparency:
The fee model should be standardized across Nostr to ensure fairness. Users should have clear visibility into how much they are being charged and how the revenue is being distributed.
Each relay and client should clearly communicate how much of the microSatoshi they receive, helping users make informed decisions about where they want to participate.
In production:
I have already tested implementing charging users 0.10 cents USD to register on my forum and it has completely stopped spam. Bitcoin microtransactions is powerful stuff to stop spam.
#spam
#nostr
#monetization