Hypersub: A Network of Networks Revolutionizing the Creator Economy
Hypersub: A Network of Networks Revolutionizing the Creator Economy
A deep dive into how it works and an analysis of long-term user growth
I think that a group of individuals, each contributing a small amount of capital, can collectively achieve a significant impact. Crypto makes this possible by enabling seamless pooling of funds and programmable distribution of rewards.
In addition to pooling capital, crypto allows for the creation of systems where everyone involved shares in the upside generated. This can take the form of token appreciation, revenue sharing, or access to exclusive opportunities. Such an approach incentivizes collaboration and fosters a sense of ownership among community members.
In this week's article, I will share my thoughts about Hypersub.xyz, a project with a value proposition that I find quite interesting.
What is Hypersub?
Hypersub is a platform where creators can sell subscriptions to their content, community, or services.
Instead of traditional monthly payments, subscriptions are represented by NFTs.
Each NFT represents access for a specific duration, such as 1 month, 3 months, or a year.
This differs from platforms like Patreon, where users pay a recurring fee for indefinite access. With Hypersub, once the NFT expires, access is revoked unless renewed.
Hypersub as a Network of Networks
The platform's structure as a "network of networks" highlights the interconnected nature of Web3 communities. This ecosystem approach fosters collaboration and cross-pollination, potentially leading to exponential growth and value creation that benefits all participants.
More broadly, Hypersub exemplifies the evolving mindset of Web3 creators:
Ecosystem-Centric Thinking: Success is measured not just in individual revenue, but in the GDP of the entire ecosystem.
Collaborative Growth: Creators are incentivized to support and amplify each other, recognizing that a thriving ecosystem benefits everyone.
Radical Transparency: On-chain operations necessitate openness, fostering trust and deeper community engagement.
Abundance Mindset: The Web3 space is viewed as an expansive frontier of opportunities, rather than a zero-sum game.
The long-term implications of these shifts could be profound, potentially leading to more sustainable creator economies, more engaged and invested communities, and new forms of digital collaboration we have yet to imagine.
As Jonny Mack, co-founder of Hypersub, explained in a recent podcast, crypto allows us to not only pool resources but also to share the upside generated. This is the key to building sustainable and collaborative economies.
The Beauty of Time-Bound Access:
This time-bound model offers benefits for both creators and subscribers:
Flexibility for Subscribers: No more endless subscriptions you forget to cancel. You choose the duration that fits your needs and budget.
Experimentation Made Easy: Discover new creators and communities without a long-term commitment.
Secondary Market Value: If you no longer need your subscription, you can sell the remaining time to someone else.
For creators, Hypersub offers:
Full Ownership and Control: Your subscription contracts are yours, stored securely on the blockchain.
Programmable Experiences: Design tiered memberships with exclusive benefits based on NFT duration.
Sustainable Revenue: Generate predictable income through time-bound subscriptions.
A Network Built on Collaboration:
Hypersub is more than just a subscription platform; it's a network of networks. Each creator has their own community of subscribers, and these communities can interact and collaborate in exciting ways.
Imagine a podcast host offering a discount to subscribers of a related newsletter. Or an artist giving early access to new artwork to members of a specific online community. These are just a few examples of how Hypersub fosters collaboration and shared success.
Hypersub vs. Patreon: A Quick Look
Both platforms help creators earn, but their core philosophies differ:
Hypersub:
Web3-powered: Uses NFTs for time-bound subscriptions, giving both creators and fans more flexibility.
Creator-owned: Contracts live on-chain, putting creators in control.
Transparent: Earnings and metrics are public.
Collaborative: Built for integration with other Web3 tools.
Early stage: Still growing, but offers huge potential for innovation.
Patreon:
Traditional model: Recurring subscriptions, familiar but less flexible.
Platform-controlled: Patreon holds the data and power.
Limited ecosystem: Operates in a silo.
Established: Large user base and proven features.
Which is right for you?
Choose Hypersub if: You value ownership, flexibility, and being part of the Web3 future.
Choose Patreon if: You need a stable, proven platform with a large existing audience.
Discovery Model and Growth
The content discovery is powered by community recommendations and collaborations, offering a path for users to explore more diverse content based on shared interests. This approach fosters organic discovery, driven by genuine community engagement rather than traditional platform-driven metrics like view counts or follower numbers.
However, the shift towards community-centric growth presents challenges. Scaling this model demands more active creator collaboration and management, which could slow expansion. Building tight-knit community engagement requires continuous nurturing and responsiveness, which can limit scalability in the short term but foster higher retention and satisfaction over time.
Growth Trends and Key Insights
Both transaction volumes and creator earnings spiked sharply in January 2024, signaling the impact of a significant event or launch. After this peak, growth resumed at a steady but slower pace, showing consistent platform use but reflecting the need for more momentum to sustain such surges.
Despite the steady growth through August 2024, current data points to suboptimal user acquisition and retention rates. Below, we analyze the core issues contributing to growth stagnation and propose targeted strategies for improvement.
Key Issues & Strategic Recommendations
1. Subscriber Growth Stagnation
Current Situation: A vast majority of users (81.5%) have only one subscription, and most spend less than $10. This lack of cross-selling or upselling diminishes revenue potential.
Recommendation:
Tiered Subscriptions: Offer different subscription levels (e.g., basic, premium) with added benefits to incentivize users to move into higher spending tiers.
2. Low Engagement from Top Creators
Current Situation: While a few creators generate notable earnings, many make minimal amounts, which risks demotivating them and reducing content creation on the platform.
Recommendation:
Creator Tiers and Incentives: Establish tiered incentives based on performance metrics such as subscriber growth, content consistency, and user interaction. Top-tier creators can unlock special monetization tools or promotional opportunities.
Content Collaboration Initiatives: Encourage creators to collaborate with others to cross-pollinate audiences, increasing their exposure and earnings potential.
3. Heavy Dependence on Small Spenders
Current Situation: The platform relies heavily on small transactions, leaving it vulnerable to economic fluctuations or user churn.
Recommendation:
Loyalty and Referral Programs: Implement a loyalty rewards system that encourages users to engage more deeply with the platform. Points earned from higher spending, referrals, or longer subscription durations could be redeemed for perks like exclusive content or discounts.
Thoughts on User Engagement and Personalization
I understand the challenges startups face when building on-chain solutions, as it requires significant resources and effort on both the protocol and client-side products. Here’s my perspective:
To further drive user engagement and platform growth, it’s crucial to enhance the recommendation engine by integrating personalization and exploration-based strategies. As the platform scales, simply relying on past interactions and subscription history may lead to repetitive content suggestions and a narrow user experience. Instead, the engine should actively promote content diversity and encourage users to explore new creators and communities.
Research from Google DeepMind underscores the value of exploration in recommender systems. Rather than reinforcing closed feedback loops—where users are repeatedly shown the same types of content—incorporating exploration-based algorithms can expose users to a broader range of creators and services. This diversity not only improves user engagement but also helps smaller creators gain visibility, thus contributing to a more vibrant ecosystem.
Targeted Recommendations and Notifications
Personalized recommendations should not only be based on users’ historical data but also factor in content novelty and community interests. By blending these approaches, the platform can present fresh content while still aligning with user preferences.
In addition, utilizing push notifications and email campaigns can significantly boost engagement. Notifications could remind users of expiring subscriptions, upcoming content releases, or highlight creators they might not have previously explored. For inactive users, offer special promotions or personalized content based on their previous interests, nudging them back into active participation.
Impact of Personalized Engagement
By refining the recommendation engine to balance personalization with exploration, the platform can create more meaningful connections between users and content. This approach not only increases the likelihood of users discovering new creators but also fosters deeper community ties, encouraging users to subscribe to multiple services. Ultimately, personalized, data-driven engagement will lead to higher retention rates, stronger creator ecosystems, and long-term platform growth.
Further readings and podcasts
Onchain Subscription Models & Rehash on Hypersub w/Jonny Mack (Hypersub/Fabric) | S8 E8
Finding the intersection between weird and delightful crypto apps | Crypto Consumer Chronicles
Jonny Mack: Hypersub, building for the crypto-native creator
Dune Analytics: fabric / Fabric - Subscription Token Protocol
Hi, I'm Kevin!
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