I live two lives, and transitioning from one to the other is not always easy. If tomorrow I seem to be losing my shit (more than usual), please remind me of who I was today.
Nostr Has the Wrong Half of Bitcoin
(A manifesto for the missing incentive layer)
They call Nostr the Bitcoin of communication. I used to nod along. Then I realized we copied the wrong half.
Nostr is a brilliant, simple communication network that leverages cryptography. Keys, signatures, relays — elegant, minimal, unstoppable. But cryptography was never Bitcoin’s breakthrough. The signatures, the hashes — all of it existed for decades before Satoshi. What Bitcoin invented was a game: a set of incentives so well-constructed that the most profitable move for every participant is the honest one. Miners don’t secure Bitcoin out of ideology. They secure it because they are paid in the very thing they secure. Enriching themselves and strengthening the network are the same act.
Now ask: what is that game on Nostr?
There isn’t one.
Anyone can run a relay — and pay for the privilege. Anyone can build a client — and live on grants and donations. That is not game theory. That is patronage, and patronage scales with ideology. Ideology got us this far: a network of believers talking to believers, largely about the network itself. It will not take us further. A protocol that runs on conviction recruits the convinced. A protocol that runs on incentives recruits everyone.
Here is what I want every single player to be able to say when they look at this network:
“If I play fair, I earn shares of the content. If I push the content to more people, I earn more.”
The developer building a media client. The operator hosting the files. The publishing tool helping a creator ship. The fan who reposts a film to her followers. Every one of them a shareholder in the works they help create, distribute, and sell. Not metaphorically — literally: a public split table on every work, signed by its creator, settled in sats that each shareholder withdraws whenever they please. Every piece of content becomes a tiny firm with a transparent cap table, and the network becomes its workforce.
Why content? Because content is the honeypot. Be honest about why people are online: escapism. News, friends and family, special interests, shopping, entertainment. That’s the whole list. Nobody outside our bubble joins a network to admire its protocol design. If we want people on Nostr, we must feed them what they came online for — and right now we offer them conversations about relays. The incentive layer fixes the supply side without a marketing department: when every client, every host, every fan profits from importing and pushing great content, the network grows its own sales force. Creators follow audiences. Audiences follow content. Content follows money. Close the loop.
One law governs the whole design, and it is non-negotiable: reward conversion, never attention. Bitcoin’s incentives work because proof-of-work cannot be faked. “I promoted this content” can be faked all day long — the only unforgeable event in a media economy is the payment itself. So nothing in this system pays for impressions, views, or engagement. It pays when value actually changes hands, and whoever verifiably caused that exchange takes their share. This is the difference between building an economy and rebuilding the engagement-farming dystopia we all escaped. The algorithms of the old world optimized for your attention because attention was what they could sell. We optimize for nothing. We only settle what was genuinely paid.
To my friends in the Value-for-Value camp: nothing here threatens you. V4V is the first mode, the default mode, the soul of this network — and it stays that way. But it is one mode, not a religion. A creator should declare the terms of support she accepts — tips, pay-per-view, purchase, subscription — and the network should honor her choice. Keeping serious creators away because we permit only one business model doesn’t protect Nostr’s purity. It protects its irrelevance.
And because incentives are a genie, I’ll say the uncomfortable parts before my critics do: open systems can’t stop a buyer from claiming their own referral — so a promotion pool is also, honestly, a bounded self-discount. Referral spam will exist at the margins; mutes and webs of trust will price it. Splits are enforced by software defaults, auditability, and paying servers — not by mathematics. None of this is perfect. Bitcoin’s game produced mining pools and fee wars too. Imperfect incentives that mostly align still beat pure ideology that mostly exhausts.
The full proposal exists — event kinds, split tables, deal handshakes between creators and their infrastructure, pull-based settlement where every shareholder draws from the pot at will. I need to go through a few more versions first.
I can’t code. For years that meant all I could do was argue. Now I can show up with an artifact and a simple claim:
Nostr already has Bitcoin’s cryptography. It’s time it got Bitcoin’s game theory.
I have met my twin flame… I had never experienced that many synchronicities and such a powerful pull, and flow.
She was the perfect test. Her defenses perfectly aligned with my wounds, and her defense was to attack.
Walking away from her was the greatest test of sovereignty I have ever faced.
Everything is beautiful, even having to break your own heart in order to save you soul.