The Interledger Community 🌱: MicroDonor

MicroDonor - Final Grant Report

Hannah — Wed, 21 Jul 2021 10:19:38 +0000

Waag stands for open, fair and inclusive technology. In order to design and develop this technology, we developed the Public Stack: a layered model that aims to reveal the underlying assumptions and design process of technological innovations, to eventually develop technology that truly empowers citizens and is built on public value(s). Such a model for citizen-centric content and services accordingly requires citizen-centric business models. The MicroDonor project, spanning from January to June 2021, investigated whether and in what form a system of micropayments aligns with Public Stack-thinking. Does web monetization have the potential to fill the current gap in fair business models for open-source developers, content creators and online service providers?

Project Update

The MicroDonor project was an intense yet highly enjoyable period of six months. It entailed simultaneously a social and a technical research trajectory. We organized various kinds of activities (see in detail the Activities section below), ranging from public events to small-scale co-design sessions. It was great to encounter so much willingness to collaborate on behalf of experts we contacted, whether it be in the form of enthusiasm or skepticism on web monetization. The project additionally proved a valuable learning experience, with even the non-technical side of the team proud to have completely grasped micropayments by now.

Last week, we wrapped up the final stretch of the project, summarizing our findings in a report that showcases both the MicroDonor web extension prototype and discusses propositions for the future development of web monetization. The complete report can be found as publication on our website.

Progress on objectives

As we explained during the midterm progress report and in previous blog posts, we deviated slightly from the original plan. We were initially researching the setting up of an entire new web monetization provider, but moved away from this because of financial and infrastructural feasibility, as well as the lack of added value to our research question (is web monetization - as proposed by the API and facilitated by ILP - in line with the shared values advocated by the Public Stack model?). Instead, we developed an extension additional to the Coil extension that provides the user with more agency and transparency, turning micropayments into microdonations.

Furthermore, we enlarged the scope. Where we started out small with merely the development of the web extension prototype, we gradually came up with so many interesting findings and propositions that we eventually delivered a complete report with recommendations for the future design and development of web monetization.

Last but not least, where we originally aimed to present project results at a larger city-wide event in June, this event was postponed due to the COVID-19 situation. Instead, we made the most of the Grant for the Web workshop on 28 July by inviting experts that participated in the sessions and other partners of relevance to our demo presentation.

Key activities

On the one hand, we pursued technical research and development, documented in our GitLab repository. This eventually resulted in the MicroDonor web extension prototype. As a second track we tested web monetization for its ‘social’ value through a public event and number of co-design workshops. Throughout the entire project, we wrote a blog series as update, including visual materials. These posts start out as general background information on the project, and gradually dig deeper into micropayments and microdonations. They also provide a detailed description on the co-design sessions, public event, and technical developments. The final report covers this briefly as well, and provides the concrete conceptual propositions based off our analysis of web monetization through a Public Stack lens. All posts and the publication can be found under the Waag project page and on this community platform.

What’s next?

This project was a great first step towards truly citizen-centric web monetization, but there are so many new questions that came up and so much energy in the team that we are eager to keep our research going in some way. We are now looking into opportunities to continue investigating web monetization within the scope of the Public Stack model and projects on digital public spaces: could web monetization be a suitable business model for digital services and content, that aligns with public values?

What community support would benefit your project?

Feel free to contact us anytime if you would like to combine ideas or brainstorm on further steps! Mail Hannah, Tom or Taco [@] waag.org.

MicroDonor: co-designing web monetization

Hannah — Mon, 21 Jun 2021 09:30:58 +0000

Waag is working on MicroDonor. We investigate whether a system of microdonations would be a suitable business model for open-source developers, content makers and cultural organizations that prefer not to make money with the personal data of their users. Through this blogpost series, we keep you posted on our (re)search.

This post originally appeared on our website. This is the last post in a series; previously, we explained the background of web monetization, outlined our first technical findings, went into findings from our public event, and gave a general project update.

Waag stands for open, fair, and inclusive technology. Last year we presented the Public Stack model in the Digital Future Roadmap, which shows how to develop this type of technology step by step. This technology, which is based on shared societal values, should include fair revenue models that put citizens first. We have been researching web monetization for a few months now. You may even have been following from the start through this blog series. Web monetization means Internet users can transfer tiny amounts (micropayments) for online content or services – powered by the Web Monetization standard and facilitated by blockchain technology with the Interledger Protocol.

This process of micropayments between users and content and service providers currently runs through Coil. As a content or service provider you join this by creating a wallet (via e.g. Uphold) and installing a payment pointer on your site; as a user you create an account with Coil for a small monthly contribution that is then divided amongst the affiliated organizations. You install the Coil web extension, which turns 'on' as soon as you visit a 'monetized' website. At Waag we are building a prototype for a second extension, alongside Coil's. With this MicroDonor web extension, the user gets more control over their payments, and so micro*payments* become micro*donations*. In addition, we think beyond this specific prototype, about the ideal application and design of web monetization in a more general context.

Co-design sessions

Because it is a relatively new theme that we initially knew little about, we decided to organize a number of co-design sessions to brainstorm with others about micropayments (read: the wider use of web monetization) and microdonations (read: the prototype for our web extension). Completely online, of course, through a combination of video calling and Miro (below an impression of the atmosphere). In groups of between six and ten participants, some recurring and others participating one time only, we critically considered disperse aspects of web monetization.

Participants included independent internet pioneers and experts in alternative financing systems, as well as news channels, cultural institutions and community currency initiatives (a.o. BBC, MoneyLab and Commons Stack). Colleagues from Waag also joined in to think along from the perspective of their own organization. During the knowledge round at the start of the sessions, which we did 'in real life' using colored objects that participants held in front of their camera, it immediately became apparent that we jointly held a mix of valuable expertise. Experiences also diverged regarding web monetization specifically: while some participants came explicitly from the cryptocurrency field or had experimented with micropayments themselves, others were relatively new to the subject. This resulted in lively discussions on a variety of topics, from tokenization and quadratic value systems to universal basic income and physical micropayments. An added benefit of current digital times was the geographical diversity: participants called in from all over the world, from Canada to Thailand and from Kenya to Germany and England.

The set-up

During the first session on April 22nd, we focused on the perspective of the creative sector: why and under what conditions would content creators and cultural institutions use a micropayments system? There was general consensus on the potential of a web monetization model as complementary to existing revenue models (and not necessarily instead of), because of the small amount of money it entails and to prevent payment leading to the exclusion of certain users. The technical complexity was also underlined. In addition, a participant suggested the term 'micromemberships', because through microdonations you can be a 'member' of several broadcasters or platforms at the same time instead of being tied to one organization or broadcaster for a higher contribution.

The session on May 6th had a more technical approach and focused on the (open-source) developer perspective. In break-out groups, we discussed two concrete components of a micropayment system, building on challenges that came up earlier on in the research process: the risk of perverse incentives (How to guarantee the quality of content and prevent so-called “dark patterns”? ) and the granularity of the 'beneficiaries' (How to guarantee that the money actually ends up in the right place?). ‘Beneficiaries’ here refers to are makers, developers and digital platforms, i.e. the receiving parties. During the last session of May 20, as can be seen on the 'digital whiteboard' below, we again worked in break-out groups, once more on two concrete design challenges: how to get users to actually adopt such a system, and the concept of (content) collectives – on which more later.

The playing field

Where the public program (watch recording here, in Dutch) and the first co-design session were mainly about distinguishing possible challenges and problematic aspects of web monetization, the sessions gradually became more solution-oriented and increasingly we were able to zoom in on more focused themes. Ultimately, the discussion surrounding the implementation of micropayments largely boils down to the playing field. Web monetization could become a completely new (payment) infrastructure, built on the web standard (the ‘Web Monetization’ IPA) and the Interledger Protocol. How do we set these up? Who designs, manages or owns this new infrastructure?

Many conversations focused on the user, as a consumer of digital content and services. The wider adoption of a micropayment system firstly requires that such a system is understandable and accessible to most people. The MicroDonor web extension tries to make the model more user-friendly by, for example, allowing the user to adjust certain settings themselves. In addition, the 'success' of a web monetization system requires a completely new mentality, a paradigm shift to the explicit monetization of digital services and content. Many users do not realize that they are in fact paying already, albeit in a less tangible way: with their personal data and the associated marketing value. Web monetization offers potential, but the question is whether it is the ideal route. Digital content and services are so further capitalized and thus become a matter of supply and demand. And what is a fair price, especially for content and services that (should) have a public value that often remains unmonetized?

This brings us to the beneficiary issue. How to prevent that especially larger, high-profile platforms benefit from a micropayment system, whereby the quantity of content comes before quality and smaller providers remain untraceable? In other words, how do we ensure that monetization linked to streaming (and thus 'clicks') does not lead to perverse incentives such as clickbait and thus only strengthens the current 'attention economy'? The provider of a service or content is almost never a single beneficiary; how does the money truly reach the right place (at what level of granularity does the donation end up)? How do you reward the user when they are increasingly co-content creators, with the line between consumers and producers blurring? How do you register as an organization or individual to be monetized in the first place? In summary: how do we ensure an open and fair playing field?

Here's a representation of what the MicroDonor web extension looks like now:

Towards a collective model?

We try to overcome some of these challenges with the MicroDonor extension. By exposing the entire 'stack' of organizations and individuals behind a platform, the granularity of beneficiaries is made clear, and by giving users the option to set a donation cap per beneficiary, there is less reason for clickbait. Other challenges converge in a design solution that came up during the sessions: the idea of 'collectives' of content and platforms, as a kind of 'package branding' around certain shared values or comparable services. These 'content pools' are partly meritocratic in the sense that revenues are distributed on the basis of contribution (but not on the basis of total clicks on the content), and are also built on solidarity (from larger parties towards smaller parties), similar to the current model within, for example, journalistic platforms.

Such a model has potential, certainly in the sense of the discoverability of smaller content creators and platforms. However, the exact governance remains an open question. 'Endorsement', or the process of admission to the collective, could be a P2P process in which the 'members' check whether the quality requirements are met. Trust plays a major role in this. On the other hand, you can think of (a combination with) a curator model, in which a central gatekeeper manages access to the so-called 'ethical registry' (list of approved beneficiaries).

Within the playing field, such a third party, an intermediary, is perhaps unavoidable. Ideally, micropayments are completely peer-2-peer without the involvement of a party like Coil, yet the advantage of a web monetization provider is that it does not trace exactly who is on which platform and therefore works more privacy-friendly. In one of the sessions, a role for banks was suggested: as an established part of the current financial infrastructure, banks could act as 'provider' (and thus manager of the money flows), with a second, social party acting as curator and setting the conditions for monetization and oversight. This is also an idea that needs further development: is this profitable for a bank, and should they use ledger technology?

And now?

In short, many new insights and ideas, of which we have tried to name the most important recurring topics above. The sessions demonstrate once again the value of bringing people from all walks of life together. This summer we will present the prototype for the MicroDonor web extension at a public event, and we will substantiate our findings and recommendations on micropayments in a public report – keep an eye out on this platform and our website. We continue to look for the balance between what is already possible and where we would ideally like to go (also in the field of cryptocurrencies, for example). This project is coming to an end, but the joint knowledge we have created will undoubtedly lead to further initiatives.

MicroDonor: in public and behind the scenes

Hannah — Thu, 29 Apr 2021 12:49:00 +0000

The coming months, Waag is working on MicroDonor. We investigate whether a system of microdonations would be a suitable business model for open-source developers, content makers and cultural organizations that prefer not to make money with the personal data of their users. Through this blogpost series, we keep you posted on our (re)search.

This post originally appeared on our website. Previously, we explained the background of web monetization, outlined our first technical findings and gave a general project update.

Public program

On Thursday May 18, Waag organized an evening program (to be rewatched - in Dutch - here) for experts and interested parties in the field of fair, open revenue models. MicroDonor: a revenue model according to public values was the first kick-off of the project towards a wider audience, and thus the first opportunity to measure the value of a microdonation system outside our own Waag team. With more than 40 visitors and a lively discussion between experts from different backgrounds, we look back at an inspiring evening.

The event kicked off with an introduction to the Public Stack model, within which the MicroDonor project positions itself. Micro-payments for digital content and services offer perspective as part of the "foundation" of a public technology stack. Colleague Taco presented our research trajectory so far (also see the previous blog post). We then entered into a discussion with the invited experts on the basis of a number of statements, whereby the public was also encouraged to actively participate via the chat. The evening ended with a reflection by a researcher who has experience with revenue models for the creative and cultural sector on a European level.

The panel was a valuable mix of expertise: a software developer who works with XRP; a publisher at Follow the Money (FTM); the person responsible for IRMA from SIDN; an advocate for creatives from the Kunstenbond; and a CRM manager at the VPRO. The panel members all in some way had experience with the search for fair business models; whereas, for example, FTM and VPRO have in the past experimented with paid apps, Tikkies and a Blendle button, software developer Wietse actually set up a system of microdonations for Reddit and Twitter users through his XRP TipBot. In addition, Caspar offered a broader view of the creative sector from within the Kunstenbond. He highlighted that the cultural sector is increasingly facing digitization - only further reinforced by the current pandemic.

A number of themes were clearly at the forefront of the discussion. First of all, the potential of a system of microdonations was emphasized. It could be a fairer, more transparent revenue model, in which the user, instead of (unknowingly) paying with his or her personal data, is in control of what platforms or content is supported. As such, content and platforms that are now often offered online for free could gain renewed appreciation. In theory, the micropayment runs directly from the user to the provider (in line with Peer2Peer thinking). In addition, many organizations and content creators themselves, on the provider side, increasingly want to get rid of a system of advertisements - both for ethical and convenience reasons. It also offers more flexibility: at a time when users want to commit themselves less and less to one broadcaster, newspaper or other platform, microdonations offer a solution for making use of different media in an accessible way (for instance to read a couple of articles instead of a whole digital magazine).

On the other hand, challenges were also discussed. For example, the speakers agreed that a microdonation system must remain fair for large and small parties. Small parties like Follow the Money, who spend a lot of time and effort on quality articles that may not be read by a large audience, should not be penalized by low web monetization revenues when this model is based on as many "views" as possible. How do we prevent microdonations from becoming a perverse incentive that leads to ‘clickbait’ and only reinforces the ‘attention economy’? In addition, it is important that the income really does end up with the maker or designer, instead of the distributing party that is often in between. Perhaps it is necessary to involve an intermediary party, who takes on an infrastructural role (of the distribution of money) and, for example, draws up leveling agreements, currently often done in the cultural sector. Ideally, donations run directly from the user to the maker, but an intermediary - such as Coil - is also necessary to protect the privacy of individual internet users.

Overall, the event highlighted the potential added value of microdonations on existing systems. There is an increasing demand at both user and provider level for fair, transparent and low-threshold revenue models for online content and services, and web monetization could partly meet this demand. Whether it is realistic that it will completely replace other existing systems remains to be seen, but it is clear that microdonations are promising as one of several types of income streams.

Technical developments

We have also been busy behind the scenes. After the first 'naive implementation', in which we transferred fake money via a test network to our own 'wallet' while using the video conference service Jitsi through meet.waag.org (see also the first technology update here), we are now working towards a 0.1 version of the microdonor web extension. In our GitLab repository (viewable here for enthusiasts) we developed two components. One for the extension itself, and one for the "beneficiaries" registry. This second component is about the beneficiary organizations; how are monetized websites recognized by the web extension and what interested organizations receive a microdonation? So far, only Jitsi and Waag are in the register, but even within meet.waag.org there are more involved organizations. Ultimately, this database will be automatically supplemented via the code we write; for now, during the co-design sessions (on which more later) we will consider how to set up this register. Do organizations apply, or do we prescribe a set of conditions on the basis of which organizations are automatically "approved" for monetization? What party manages such a register?

The first component that we are developing is about the web extension itself. As explained in previous posts, this will be a Waag microdonation web extension that operates alongside the Coil extension and with which you as user can set the conditions for monetization yourself. In the current v0.1 this works as follows: The extension recognizes the platform you are using or the content you are viewing, and sends it to the server with the register of monetized organizations. In a next version we want to see whether we can load this database locally in the web extension. The component with the register returns a list of the beneficiaries (currently two), from which the extension then randomly chooses 1 to monetize - with the fixed rate of 0.36 cents per hour that Coil uses. In the settings in the drop-down menu of the extension, you can also choose which beneficiary you support, and you can set a maximum amount per recipient.

The Waag web extension then picks up the "receipts" (transferred amounts) from Coil and adds them up, so that you as user can read how much you have donated in total. This is stored on the user's local server (computer), so that privacy is not compromised as with storing data centrally. The micropayments are done in XRP, a cryptocurrency set up by Ripple. Unlike cryptocoins like Bitcoin, XRP does not run through a ‘proof-of-work’ consensus mechanism (requiring enormous amounts of energy) but instead through ‘trust-based validation’. The payments are therefore faster and more energy-efficient. The receiving party receives the microdonation in its virtual wallet in the form of XRP, after which it can convert it to another currency as desired.

Next steps

So far the microdonor browser extension v0.1. In the coming weeks we will further develop the back-end, after which we will also look for the desired design at the front. Furthermore, we will look more generally, beyond the web extension (which is linked to Coil and therefore remains dependent on the conditions created by them): what else can be done with the Web Monetization API? What do we recommend for the ‘ideal’ monetization provider, besides Coil?

We will further elaborate on questions from both the public program and the technical research trajectory in the co-design sessions on April 22, May 6 and May 20. During these sessions, we will brainstorm on web monetization with a diverse group of open-source developers, creators from the cultural and creative industries, and advocates of open technology and fair business models. More information about the co-design sessions can be found on our website.

MicroDonor: First exploration of the technology

Hannah — Tue, 30 Mar 2021 12:29:42 +0000

The coming months, Waag is working on MicroDonor. In this project, we investigate whether a system of microdonations would be a suitable business model for open-source developers, content makers and cultural organizations that prefer not to make money with the personal data of their users. Through this blogpost series, we keep you posted on our (re)search.

This post originally appeared on our website. Also see the first post here.

Imagine running a literary magazine. You want to offer open, honest content to as many readers as possible. Preferably as accessible (and therefore cheap) as possible, and in a privacy-friendly way in which private data of users is not ‘secretly’ collected. At the same time, you still have to finance your platform in some way. How do you do that?

Microdonations have a lot of potential: through small, voluntary donations, you as a user support open-source platforms, content creators and cultural institutions of your choice. A win-win situation for both the user, who no longer (unknowingly) 'pays' with his private data, and the providers of these digital services, who operate according to the Public Stack model of ethical technology and public values (read more on the Public Stack here). But how does such a microdonation system work in practice?

Waag received a grant to investigate how microdonations can be used to support public and open-source services on the internet. We started with the question: is Web Monetization a suitable model for financing Public Stack services? We will keep you informed of our search through this blog series. In the first post, we outlined the urgency and background of the project. We are now a few steps further in the research process. In this post, we update you on our system-technical findings so far. What is Web Monetization? And what kind of parties are actually behind it?

How web monetization works

Web Monetization is a model that enables small payments (microdonations) from the visitor or user of a digital service to the organization behind this service. Examples of these organizations are open-source platforms or creators, and cultural institutions that want to share their (online) content openly and are looking for a different revenue model than through personalized advertisements.

The Web Monetization API (application programmer interface) has been around for several years now, enabling organizations to act as Web Monetization providers to facilitate transparent, secure payments between users and digital service providers. Providers act as intermediaries. Micropayments from users of digital Public Stack services reach the providers of these services via this route. Compare it to Spotify: as a user you pay a fixed contribution per month, which Spotify as intermediary then distributes in small amounts among the music providers (the artists). With Web Monetization, these micropayments run via the Interledger protocol ("ILP" for convenience), which supports online transactions between virtual wallets using blockchain.

Coil is the only Web Monetization provider that currently exists. Coil works as follows: through a monthly flat fee subscription of $5 you become a member, without having to create a wallet (a digital place in which your money is stored). You hereby install the Coil web extension, or a small program that ‘watches’ along with your browser activity and the platforms and content you visit online. Organizations or content creators register with Coil in a similar manner. They create a wallet through an organization like Uphold, and place the Web Monetization ‘tag’ on the API of their page. As a user, when you visit a platform or view content from an organization that is affiliated with Coil, a dollar sign becomes visible on the Coil web extension and the counter starts running – you are on a monetized website.

Based on how long you're using the website, Coil will transfer a fixed amount of 36 cents per hour to the organization in question. Coil thus balances incoming money flows from users with payments to receiving platforms, whereby they themselves as provider absorb the remaining risk. By working with fixed amounts, they avoid having to keep track of which monetized services are used by each individual user. This disconnection is important for privacy reasons, as it prevents individual payments between visitors and the receiving content creators or organizations from being recorded.

Waag's 'quest'

Coil is funded by the American Ripple, which works with XRP currency, the bitcoin counterpart on behalf of the financial sector. Coil currently has thousands of members, ranging from individual content creators to larger cultural and open-source organizations. In partnership with the Mozilla Foundation and Creative Commons, Coil set up Grant for the Web, a $100 million fund that explicitly focuses on new developments within Web Monetization. Waag received a subsidy for our research from this fund. We kicked off in January, with the aim of eventually developing a prototype for our own Web Monetization web extension.

We started an experiment with a small web extension, with one test user who acted both as user of the service and on behalf of the provider. As a test, we used meet.waag.org, our own implementation of Jitsi, an open-source video conferencing service. Via Uphold, the test user created his own wallet and one wallet for Waag. The first stumbling block immediately followed: in order to make full use of the wallet, all kinds of personal data were required, such as a copy of your passport - not exactly privacy-friendly...

We therefore used a sandbox (test network) with fake money. We linked the ILP to meet.waag.org via the Jitsi API, which is openly accessible and to which you can 'punch in' code. The goal was that the web extension would detect the end of the Jitsi session, transferring a (small) fixed amount the moment you hang up. And it worked! Fake money went out of the user wallet and flowed back into Waag's wallet. The 'naive implementation' was successful.

Change of plans

We want to use our research to find out whether micro-donations are a suitable model for financing digital Public Stack initiatives. Initially, Waag thought it would be necessary to act as a Web Monetization provider (just like Coil) in order to fully investigate this. This turned out to be unnecessary, due to the possibilities and freedom the Web Monetization interface offers via Coil. Acting as provider ourselves would therefore not have real added value towards the project aim. Besides, working as provider entails setting up a new company with customers and money flows. This is organizationally complex and does not fit within the organization of Waag.

Rather than reinventing the wheel, we would thus rather aim our attention at finetuning the system. We will not act as Web Monetization provider ourselves - as originally proposed - but instead use Coil and build our own web extension alongside it (this flexibility is offered by the Web Monetization API). The added value of an additional, Waag-owned web extension is that we can build in extra options so that you can as user select exactly what platforms and open-source projects you want to support, and that you can link clear conditions to monetization. For example, you can set a maximum amount or switch your preferences for certain platforms on and off. Ultimately, it is not the owner of the site, for example through a paywall for extra content, but the user that decides what is paid for. Below is a mock-up of what a prototype for the extension could eventually look like.

What next?

There are a number of follow-up steps in our research trajectory. Firstly, we need to determine what do you want to monetize? How do you determine which organizations and content belong to Public Stack initiatives, from which the user can ultimately make a selection via our web extension? In addition, the process surrounding both web extensions must be as transparent as possible to the user, with terms and conditions for payments and preferences clearly defined - including Coil's privacy terms. How do you communicate this as openly as possible?

We would also like to involve you. Is a Web Monetization system indeed a system we want to take up? What other options are there? A public evening event took place on Thursday 18 March, in which various organizations that are already experimenting with fairer business models were be featured. Re-watch the meetup here (in Dutch).

We will also organize three co-design sessions on April 6, April 22 and May 6. In these, we will work with open-source developers, content creators and cultural institutions to design the 'ideal' Web Monetization standard. What would Web Monetization look like if we do want to act as a provider ourselves, what conditions should such a standard meet and who should be involved in the design process? Does your work relate to this or do you have a personal interest in innovative revenue models? Keep an eye on our site and contact Hannah (hannah[@]waag.org) to participate in a co-design session or for further questions/remarks.

MicroDonor: Donations for privacy-preserving content and services — Progress Report

Hannah — Thu, 25 Mar 2021 10:39:21 +0000

Hey Community! We at Waag, Amsterdam are excited to share our progress on the MicroDonor project. MicroDonor focuses on the potential of microdonations (facilitated by the web monetization standard) as an open and fair business model for content makers, open-source platforms and other organizations that try to operate according to public (societal) values.

Project Update

In general, the project is going quite well. After an initial exploratory phase in which we searched a bit to completely grasp the concept of web monetization (especially for the less technically-knowledgeable in our team), we are now fully immersed. We see MicroDonor as a dual process: technical and social aspects go hand in hand. Whereas the former focuses on the development and prototyping of the actual technical infrastructure, the latter considers input from user groups and the general public to discern societal value and specific user interaction requirements.

The past months, we have started investigating the technical workings of web monetization. We constantly try to test our technical research findings for their actual value through the social track of the project. We keep anyone interested updated on our trajectory through a blog series and try to actively engage the public through events and co-design sessions, a highlight of which was our evening program last week (more under ‘Key activities’).

Progress on objectives

Over the course of our research trajectory, some of our initial objectives have slightly evolved.

First of all, we decided to expand the scope of the project. Whereas we initially focused on the specific user groups that we had distinguished in advance, in particular open-source platforms (such as Jitsi) that we use ourselves as organization, we gradually broadened to the larger potential of a microdonation business model for digital services and in the creative sector. Is this a model that we would actually want to set up on a larger scale? We have now framed the project within our Public Stack model, that stands for open, fair and inclusive technology (and according business models).

The previous point links to our key user groups. We originally had in mind (1) open-source developers, (2) content makers and (3) cultural organizations as main user groups for our three co-design sessions. We gradually realized the latter groups slightly converge, and have reclustered. During the co-design sessions, we now want to first focus on the general socio-economic requirements of a micropayment system (session on April 6th), then look at the requirements specifically from a content maker / cultural organization point of view (session on April 22nd), and finish with the open-source developer perspective (session on May 6th). The main objective as stated in our proposal remains the same: to co-design and subsequently test the concept and its implementation in the functionality of microdonations.

Regarding the technical research trajectory, the type of extension we are developing is different than initially planned. As described under ‘Key activities’, we have decided to design an additional web extension instead of acting as web monetization provider ourselves, as this proved more in line with our research aim.

Key activities

For the technical part of the project we started with background research on the workings of ILP and the web monetization API. We used Uphold to make a personal wallet and one for Waag, which posed a few barriers in terms of privacy (it proved necessary to upload some personal data to set up a wallet). As a result, we decided to start with the ILP test network. We developed an initial proof of concept of a microdonation system by using our own implementation of Jitsi meet.waag.org, in which we connected to the ILP test network. Eventually, micropayments were successfully transferred from our personal wallet to the Waag wallet when the Jitsi session ended.

The main aim of our project is to conclude whether micropayments can be a suitable and desirable business model for online platforms and content. In our original plan, we thought it would be necessary to act as web monetization-provider ourselves (as a new Coil, so to speak). We gradually concluded that doing so would not have added value for our research question, as the web monetization API offers enough flexibility in its current use through Coil. We have thus decided to focus on developing a prototype for a second web extension, in addition to the web extension that you install as member of Coil. This additional extension focuses on the specific functionalities and requirements of monetization, providing the user with more flexibility in choosing how to monetize preferred platforms and content (eg. which of the involved organizations to support). A mock-up of the web extension as currently developed is shown below - with Dutch explanation.

As for the social part, the plan is still in line with our original proposal: a stakeholders symposium, followed by three co-design sessions, followed by a final presentation of the project findings at a conference. We successfully organized the first event last week, in the form of a public evening event with a panel discussion of a diverse group of speakers (including input from the audience). The program brought together perspectives from a diversity of backgrounds, from public broadcaster to independent journalism platform to XRP micropayment developer. It was a big success, sparking a wider discussion and making the topic understandable to a broad audience.

During the upcoming co-design sessions (in April and May, see dates above), we will delve deeper into the operationalization of web monetization. We hope to present the result of our research efforts in the form of a Waag microdonor web extension prototype at a larger conference in June.

Communications and marketing

We have set up a blog series (shared both on waag.org and on this community platform) to take the public along in our research trajectory. The first post was a broader introduction to the project and web monetization in general, the second an explanation of the technical findings so far.

Moreover, the event last week was recorded and can be viewed through this link (though in Dutch).

What’s next?

As mentioned previously, we will organize three co-design sessions in April and May and eventually end with a presentation of the project at a final event in June. Additionally, we will continue the blogpost series as update towards the public. Finally, next steps in the technical research trajectory encompass further research and development of the Waag web extension prototype, including determining the exact specifications that a user will be able to choose from (see the latest blogpost for further information).

What community support would benefit your project?

We're still looking for people to join our first co-design session on April 6th (1:30 - 3:00 PM CET), that focuses on the potential of web monetization from a broader socio-economic perspective. Interested? Contact Hannah through here or at hannah[@]waag.org and we'll send you more information.

Apart from that: there's so many great initiatives on here, it would be great to join forces and compare projects! Feel free to contact us to arrange something, we would be interested to see how our projects overlap and where we can learn from each other.

Relevant links/resources

First blogpost, sketching the background and aim of our project: https://community.webmonetization.org/microdonor/microdonor-re-search-for-a-public-stack-business-model-4795
Second blogpost, focusing on a technical update of our research trajectory: https://waag.org/en/article/microdonor-first-exploration-technology
The recording of the event last week (in Dutch): https://vimeo.com/506179307

INVITATION - MicroDonor: a 'public value' business model?

Hannah — Mon, 15 Mar 2021 15:13:27 +0000

Waag is organizing an event on microdonations and other business models for digital organizations that are founded on public value(s). Join us this Thursday March 15th from 7:30 - 9 PM (UTC +1) to engage in a discussion on the future of web monetization. Featuring open-source developers, public broadcasters, researchers and more. See the eventpage for more info. See you there! N.B. the event is in Dutch.

MicroDonor: (re)search for a Public Stack business model

Hannah — Fri, 26 Feb 2021 15:54:27 +0000

The coming months, Waag will be working on the MicroDonor project. We are going to investigate whether a system of microdonations would be a suitable business model for open-source developers, content makers and cultural organizations that prefer not to make money with the personal data of their users. Through this blogpost series, we keep you posted on our (re)search.

Hardly a day goes by that we do not in some way use services by the Big Five tech companies: Facebook, Amazon, Google, Microsoft and Apple. We have become strongly dependent on their online platforms and services. A large part of these 'free' platforms bases their profit model on collecting and selling our personal data. People are seen as a commercial means for exploitation, a system in which our personal data is worth money.

Waag places public value at the heart of technological development: with the Public Stack-model we fight for open, honest and inclusive technology. We believe that shared societal values instead of commercial goals should be at the basis of our technological and digital infrastructure.

Public values first

Fortunately, there has been a rise of companies that do operate according to the values of the Public Stack, such as videoconferencing tool Jitsi and digital identity service IRMA. They offer online platforms and services that prioritize public (societal) value and in which civilians are actively involved in the design of their digital environments. However, these organizations need an alternative business model in order to remain sustainable in the long term. One such innovative financial model that takes its users’ privacy as starting point is at the basis of MicroDonor, a project Waag will be working on during the upcoming months.

How does it work?

MicroDonor is based on voluntary donations of users to platforms and content. It is a transparent way of delivering open, safe content and services. Waag received a subsidy for the development of a 'microdonation' system from Grant for the Web, an American organization that focuses on these so-called Web Monetization models. A microdonation system entails that users automatically donate a small amount (think 0,5 eurocents) to the platform provider during their visit. A protocol called Interledger helps to send these microtransactions between different blockchains.

Is it a desirable profit model?

The coming months, Waag will explore whether Web Monetization would indeed contribute to the Public Stack-way of thinking. What would a microdonation system look like from a technical point of view? Should users be able to create a virtual wallet to support such a payment system, and if so, how would it ideally be designed? And would it be convenient and desirable to make a donation per (digital) visit, or should there be a streaming service involved that links the height of the donation to the amount of time you use a platform or view specific content? Eventually, we will develop a prototype for a web extension through which the user becomes a ‘microdonor’ when they visit certain websites.

Apart from the technical side, there is a crucial social aspect to the project. Is a microdonor business model desirable? How can it be designed in the most open and transparent way possible? To answer the societal question, we would like to create a conversation with different groups of experts through co-design sessions. We also want to reach out to a broader audience with a (digital) evening program. We aim in particular for three central user groups: open-source developers (like Jitsi en IRMA), content makers, and cultural organizations. We hope to so combine different perspectives in order to conclude whether a microdonation system would indeed be something that could be upscaled, and that we could potentially even adopt for our own platforms.

Do you think MicroDonors are an important topic or are you dealing with these kinds of questions within your own work? Join us at the public program on Thursday the 18th of March! If you recognize yourself in one of the user groups and eager to actively engage with us: please send a mail to hannah[@]waag.org to join the co-design sessions in March and April.