6min chapter

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The Metaverse, Crypto, Virtual Society

web3 with a16z crypto

CHAPTER

The Value Inversion in Cryptocurrency Platforms

In crypto, you don't have any middlemen or if you do have middlemen, they're taking a much smaller take grade. Last year, Minecraft announced that they paid out $350 million to developers. So creators generated $350 million from mods on Minecraft. But after a 50% take rate, that's $170 million in creator payouts. And Minecraft has 140 million monthly active users. Given that only a fraction of people actually buy anything in a free to play game, 90% of the revenue is coming from a tiny fraction of people and everyone else is actually a job they do for free,. which is being shot by people who have paid money for item.

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