A lifetime or two ago, Biz Stone was showing me and my co-founder around South Park in San Francisco. The Twitter office was sat there, a weird building with glass bricks across the road from what would later be the Instagram office. We grabbed a coffee at Caffe Centro and talked social media; two founders talking shop with a member of our advisory board.

He was particularly excited about the Twitter API. At the time, over 80% of Twitter’s traffic wasn’t driving through the website: it was through third-party apps that used the API to create entirely new experiences on top of the platform. Around the same time, unbeknownst to me, Blaine Cook was internally demonstrating interoperability between Twitter and Jaiku, another social network, establishing the first decentralized link between two unrelated social networking sites.

Of course, we know what happened next. Twitter realized that the proliferation of the API was actively blocking its ability to make money through advertising, and radically locked it down in favor of its own experiences. Blaine’s adventure in decentralized social networking was shut down for the same reason. Subsequently, a lot of people made a lot of money. And, you know, some other stuff involving the future of democracy happened, too.

What happens when you build, well, the opposite of that?

Bluesky’s origins lie in that moment when Twitter turned away from the open social web. It is both a user-friendly social media site and an open protocol that could underpin all social media sites. Like Twitter, it has built a lively community of engaged people who talk in real time about anything that hits the zeitgeist, from current events to pop culture. It has a growing ecosystem of third-party apps and services. And it has venture investors who, ultimately, will need to see it make money and raise its valuation so that they can make a return. Unlike Twitter, it has no way of turning off its openness in order to do so.

Recently, the company advertised for a new Head of Product. Whoever assumes this position will have quite a job ahead of them: growing the protocol and the social app together in symbiosis. Nobody has ever tried to build a highly-valuable tech company this way before; it’s new ground. I think it’s a very positive experiment — we need people to be able to make money doing the right thing — but it is an experiment.

I’m not applying for the job, but I think it’s interesting to consider how one might go about it.

The first paragraph of that job description is interesting for what it prioritizes:

Our mission is to build an open protocol for public conversation. We give users more choice, developers more freedom, and creators more control. The Bluesky app is a gateway to a more human-centered social web, and we’re looking for the right strategist to shape its future.

The mission isn’t to build a social network: it’s to build an open protocol for public conversation. (Emphasis on the protocol.) The vision is a world where everyone is in control of their social presence. From the About Bluesky FAQ:

We want modern social media and public conversation online to work more like the early days of the web, when anyone could put up a blog or use RSS to subscribe to several blogs.

The strategy is to build a central tool based on the protocol — the Bluesky app — and use it as a way to grow the reach and influence of the protocol, and further these open ideals. In some ways, the app is a means to an end: a way to understand what the community needs, ensure that the protocol provides it, and shorten the feedback loop between the company and its users. It’s also its best chance to make revenue in the short term.

Bluesky is not currently self-sustaining. In order to continue to do this work, it will need to continue to raise more money and prove that it can generate revenue.

Currently, its venture investors are largely drawn from the world of decentralization: either people who are friendly to the ideals of the open web or come from decentralized spaces like crypto. That mission alignment is going to be harder to maintain the larger the funding rounds get; mission-driven investments are more common in earlier, smaller rounds, and later-stage institutional investors don’t typically back companies for their ideals.

The norms of venture capital dictate that it will also likely need to raise more money in a subsequent round so as to maintain investor enthusiasm: raising a similar amount as the last round, or a lower amount, could be seen as a sign to VCs that the company is struggling. So Bluesky the company needs to quickly prove to investors that it and its protocol can make them a meaningful financial return.

Providing strong investor returns and maintaining the ideals of an open social web is a very ambitious needle to thread. Where to begin?

It’s no secret that Bluesky is going to introduce a subscription layer. It sounds like this will come in two parts:

1. A Twitter Blue style subscription called Bluesky+ that will give users profile customizations, higher-quality video uploads, and post analytics, among other features.
2. Creator monetization tools that will allow creators to “get paid right on Bluesky and any other platforms built on their open AT Protocol ecosystem”.

The first will obviously sit as part of Bluesky’s own service; while features like analytics will obviously draw on the protocol, these are really features that improve the experience of using the app itself. Speaking personally, I can’t say that I care that much about profile customizations or video uploads — although I know that these will be draws for some users — but I can certainly see a reason why an organization might want to pay for brand analytics. It makes sense as a place to start.

The second is interesting for the way it’s described. I’m generally not bullish about venture-funded creator economy services: Substack, which has kind of become the flag-bearer for creative economy services, is not profitable, and Patreon has had real trouble reaching sustainability. Medium is profitable, but only after Tony Stubblebine radically shifted the company away from high-growth VC dynamics (and cut a ton of unnecessary costs).

So if Bluesky was pinning its future on a creator subscription play, that wouldn’t grab me at all — but that’s not what’s going on here. The “… and any other platforms built on the AT Protocol ecosystem” demands my attention. This is the future of Bluesky as a platform and a company.

One analogy you could use (and Bluesky has used) to describe Bluesky’s app on its protocol is GitHub: git is an open protocol for collaborating on software development, but GitHub’s implementation is so good and so seamless that almost every software development team uses it. You absolutely could use GitLab, Codeberg, Gitea, or any number of others, but they’re considered to be the long tail to the market. Similarly, Bluesky’s app is going to be the best social experience on the protocol, even if there are many others.

But you could also use Android as an analogy. The open source mobile operating system is largely developed by Google, and Google’s implementation is the one most people use: most Android phones use its Play store, its payments system, and its discovery layer. You don’t have to — many others are available — but if you’re an app developer, you’re probably going to write your software for Google’s ecosystem.

There’s a credible exit from GitHub in that you could move your development to Codeberg. There’s a credible exit from the Google ecosystem in that you could move to the Amazon ecosystem, the Samsung Galaxy ecosystem, or open source ecosystems like Aptoide. You’re not locked in, even if Google’s ecosystem is the most convenient for most users.

There will be a credible exit from Bluesky’s social app on its protocol: other social apps will be available. But this principle also goes for tertiary services. Bluesky will clearly provide payments over the protocol, taking a cut of every transaction; others will be available, but theirs will be the easiest way to pay and accept payments on the network. You’ll be able to discover apps that run on the protocol any number of ways, but Bluesky’s discovery mechanisms will be the best and the most convenient. There will be any number of libraries that help you build on the protocol, but Bluesky’s will be the best and easiest for developers — and, of course, they will have strong links to Bluesky’s default services. Each of these is a potential revenue stream.

The goal here is to grow the AT Protocol network to be as big as possible. Anyone will be able to permissionlessly build on that platform, but Bluesky’s services will be there to provide the best-in-class experience and de facto defaults, ensuring that its revenues grow with the protocol, but not in a way that locks in users.

This principle also answers a few questions people have had about the community:

• Why did crypto investors put money into Bluesky when the company itself has stated it won’t become a crypto company?
  The company’s own payment systems are likely to run off credit cards, taking a standard transaction. But clearly, crypto is another option, particularly in nations that might not be well-served by credit card companies, and crypto networks can step in to provide alternative payment mechanisms. By establishing the notion of decentralized subscriptions, Bluesky creates a ready-made bedrock for those payments.
• How will VC investors see the financial return they need without Bluesky necessarily having to let go of its principles?
  The company actually becomes more valuable as more people use its open protocol: the bigger the network is, the greater the addressable market available to its services. It needs developers to build tools, services, and experiences that its own team wouldn’t produce. It also needs them to address markets that it itself cannot, allowing the possibility for local control of app experiences. (Imagine if developers in Myanmar could have easily created their own Facebook with their own local trust and safety.) It will then serve them with easy payments, great libraries, and perhaps other services like analytics and even dedicated hosting.

Clearly, there’s work to do on both the protocol and the app. For one thing, payments become more valuable if scarcity is introduced: people may be more likely to pay for content if it is not otherwise available. That means adding features like per-item access permissions — which also help vulnerable communities that might not feel comfortable posting on the completely open protocol today. Discovery and trust and safety on the app can still be improved. But these things are intrinsic to creating a valuable ecosystem and best-in-class tools that sit upon it.

Perhaps ironically, this vision comes closer to building an “everything app” than will ever be possible in a closed ecosystem. That’s been Elon Musk’s longtime goal for X, but Bluesky’s approach, in my opinion, is far more likely to succeed. It’s not an approach that aims to build it all themselves; it’s a truly open social web that we can all build collaboratively. What Musk is branding, Bluesky may build.

To be sure, this isn’t a Twitter clone play. If Bluesky succeeds, it won’t be because it tried to beat Twitter at its own game. It’ll be because it stayed open, built the right tools, and helped others do more than it could do alone. That’s not just a better app. It’s a better kind of company.

This is the first post in a three-part series. Next up: Mastodon. Subscribe to get them all via email.

Photo by __ drz __ on Unsplash.