Web3 is dead, long live Web3
All the juicy details behind my creator economy experiments
Hi there,
How’s your summer going? I’m writing this from a cabin out in the hill country. I’m in the company of two Texas longhorns, Vitalik Mooterin and CAO. I’m here with members of the Des Femmes community, during our Gitcoin crowdfunding campaign (accepting ETH through June 23, please contribute if you want to support that project! 🙏), planning the second magazine.
The only article I’ve published in June was for Bitcoin Magazine, about mental health, because I’m surprised by how emotional it is for me to earn and spend cryptocurrency.
In addition to sharing pictures from Texas, this newsletter may be my most revealing essay yet. Please do share your reflections in the comments and via email. I love hearing from you! A lot has happened since I left CoinDesk in October 2020, so let’s start there.
Bitcoin-curious Beginnings
In 2020, I experimented with several poetry NFTs (earning enough to buy a nice dinner) and accepted bitcoin payments for self-published poetry. I ran a bitcoin node, with the help of a paid computer science tutor, but had not yet used a hardware wallet by myself. I had only used Coinbase for one writing assignment in 2017. I was not, by any stretch of the imagination, a “crypto native,” which I’m still not!
When I went freelance in 2020, I told prospective clients I accepted bitcoin or dollars, letting them choose. Dozens of clients paid me in bitcoin for poems, tarot readings, and consulting on topics related to wellness, editing, and media. Many customers were anonymous. I know very little about them other than they found me through Twitter or personal references. I offered bitcoin wallet addresses, plus the option to use my public Strike. Then I explored BTCPay server, with the help of several tutors over the course of one year.
Meanwhile, Camila Russo and I learned during an ACJR event that we both daydreamed about women’s media focused on technology and business. We hopped on a call with a reader named Rose (herself an engineer), who said she loved the idea. I told them both I was living month-to-month on freelance income, so I couldn’t dedicate unpaid labor to a purely nonprofit/open source model.
Camila was quite optimistic, so we agreed to explore a co-op model rather than making a typical startup. In early 2021, Camila created a Gitcoin crowdfunding page, the Des Femmes Twitter account, and a pitch deck (which Rose and myself contributed edits to).
Several crowdfunding contributors, plus some of my long-time readers, offered to volunteer (explicitly declining pay) and created a Slack for Des Femmes (a name that Rose, a French Canadian, chose for the project). Camila asked me to manage liquidating the crowdfunded ETH for magazine production and community-building, if the project eventually paid the core team. Many notable DAOs (collectives that use cryptocurrency) pay their teams and raise money from investors. I said yes, because I was fascinated by NFTs and collectives like CabinDAO.
So, I created an LLC to deal with retailers like Barnes & Noble, got a business crypto exchange account (liquidating ETH to pay for things like printer paper was a tax nightmare), and retained a lawyer to draft unusual contracts, stating LLC advisors would contribute routine volunteer labor for two years to the Des Femmes project.
When volunteers signed on to take advisory roles, they all suggested I talk to angel investors interested in DAO experiments. The LLC accepted a modest amount from angel investors, using those dollars to pay more than 25 freelancers and a half dozen vendors as we made IRL products, a career mentorship program, and taught 10 women how to use multi-signature cryptocurrency wallets for community-managed funds beyond myself and Camila.
Meanwhile, I studied bitcoin multisig tools, so I could help form a DAO without launching a token. Instead, Des Femmes contributors launched holiday NFTs, then set up a Shopify to accept bitcoin (via OpenNode & the LLC, now exploring a transition to BTCPay). The NFT contributors used this paid freelance opportunity like an educational scholarship, since most hadn’t launched NFTs before. An arts scholarship felt less problematic than a token without a clear roadmap. It was just JPEGs of snow globes and pink presents. Who doesn’t love festive vibes?!
By January 2022, we’d run several educational programs, garnered thousands of readers, and attracted companies interested in paid services (in dollars). The advisors had already agreed (documented in 2021 leadership meeting notes, available to prospective core contributors) that it would be fair to start paying me. However, to date, I still haven’t regularly paid myself the approved amounts, because it was important to create a clear structure first. Getting everyone on the same page, with aligned goals and expectations, takes time.
After interviewing dozens of people involved with DAOs, I’ve learned that heavily screening contributors is the most important step in securing active members. According to almost every DAO leader I’ve asked, engagement dwindles after the first year, regardless of token incentives. Someone must own the resources and have a clear direction for how to use them in order to reliably manage a project over time.
(Cadillac Ranch art installation in Amarillo, Texas)
Crypto Mistakes
While Des Femmes grew, I purchased my first NFTs and earned my first DAO tokens by completing a bounty.
Today, I regret many such transactions the way I regret buying pretty dresses that I’ve only worn once. When the dopamine boost of buying a new trinket fizzles, I’m left with a Discord or Telegram group full of strangers who are rarely responsive.
In some ways, joining a token-based community is like buying a ticket to someone else’s wedding. Unless you bring a companion, that might result in more spectatorship than meaningful participation. Generally speaking, token sellers don’t feel a sense of responsibility to all holders. After talking to dozens of DAO participants, I have learned that the reality is contributors likely have sources of capital that aren’t obvious to an onlooker. The DAO is not typically a reliable source of income, unless it is investor-subsidized.
Behind the scenes, other DAO operators I met with complain that people who say they’ll contribute labor either ghost or fall short, and that rewards aren’t enough to guarantee productive behavior. An agreement without the prospect of consequences is only a wish.
My biggest money mistakes over the past year were usually because I misunderstood that digital assets cannot (on their own) enable co-ownership. Ownership involves responsibility. Token-related communities sometimes revolve around how much value can be extracted in exchange for the least responsibility, compensation, or accountability.
Bitcoin fans love to imagine this is unique to “scammers,” but that hasn’t been my experience with the open source and nonprofit bitcoin projects I’ve explored since 2020. In my opinion, Bitcoin and the Lightning Network are the cornerstone of the “Web3” revolution. The same warnings apply.
(My little node)
Roughly three years after I accepted bitcoin for poems, I now use bitcoin roughly as often as Venmo. I’ve gained the ability to transact directly with greater ease than my bank accounts provide (even considering the extra tax paperwork and hardware!), which is the primary perk of using bitcoin.
It’s not fair to call all DAOs or NFTs scams by default. Many people enjoy the parties or collecting digital assets as if they were baseball cards. Plus, it’s easier to earn or crowdfund tokens, which can be converted, than to earn bitcoin directly. Along those lines, I’m working on a small NFT experiment, on the side, while thinking carefully about how to set realistic expectations. Going forward, I’m putting firm boundaries around how much time and money I spend on such hobbies.
Overall, recognizing the difference between a personal friendship and a utility acquaintance has been the hardest lesson for me in this kooky industry. On the bright side, I’ve made many real friendships through the space, some maintained for years. For that, I’m incredibly grateful.
Looking Ahead
The current Des Femmes Gitcoin campaign is accepting contributions, and I know for a fact we’ve had a significant impact on many women’s lives since 2021. There are a few different directions the project might take by 2023. In every case, I’ll support Des Femmes keyholders (managing wallets I don’t have access to) in whatever they want those funds to become by 2023.
This year we’ll be even more effective, regardless of the bear market. If you’ll be in New York next week, I highly recommend getting tickets to our first public party!
Meanwhile, the LLC will become more clearly defined as a small business that continues serving hundreds of women who have contributed to, and benefited from, the Des Femmes project over the past year.
All crowdfunded money goes toward community-led media production, and the next magazine will be even better than the first edition!
We’ve accomplished so much since 2021 and still have some amazing opportunities coming up in 2022! In the upcoming months, I’ll detail more insights gained from participants across many DAOs. In the meantime, I’m very curious to hear your perspectives on all this. Tell me your thoughts via comments or emails.
Until next time, take care everybody!
Your journey is an inspiration, the last 2y are impressive. I really appreciate how you describe the steps taken, with a reflection on them, what was positive or could be improved next time. No regrets, experience is part of what we are. You have convinced me to run a btc node as soon as Pi are back in store.
Let the journey continue!
Have a great summer time meanwhile