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Nick Szabo famously wrote about how the mental transaction costs of micropayments might imply that micropayments are never going to catch on in any widespread manner.

Do you think micropayments will see an increase in adoption or not?

When people talk to an AI, and consume "tokens" -- that is a kind of micropayment.

So, it would seem, reality disagrees with Szabo in that case.

Talking about blockchains / payment networks specifically -- I certainly think it is likely that micropayments would take the form of "Buy $20 worth of tokens -- then slowly consume the tokens" -- where the tokens are "custodial" (only valid at the one merchant).

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I suspect that most token consumption in the AI context is already a "Buy x amount and then gradually use them up" or a subscription model. I think Szabo said such a thing would be a likely solution.

My read of his critique is that he didn't think people would want to do things like pay per query or small individual tips or pay to email.

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I'm still bullish on tips

There was a popular reddit "tip bot" back in the earlier days of Bitcoin. You could tip people a beer (about $5 at the time). I think it is good for first world, tech savvy people who can afford $5 tips.

I think "pay per email" is misconceived. Instead it should be "pay per introduction" -- after your first message goes through, the other person can accept, and then you can message back and forth (for free).

But pay per intro is absolutely crucial to the survival of the internet. We desperately need it ASAP.

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Ah! yes, the construction "pay per introduction" makes much more sense. I'd love to see something like that. @supertestnet has a pay per email thing on his website which I've always thought was handy.

Do you know anyone working on something like this pay per introduction idea?

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yes, we are doing it, with BitNames

But everyone should do it - everywhere

It is disappointing to see that Telegram (for example) drops the ball. They have the "pay stars per message" -- but not per intro.

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what is a "mental tx cost"? The difficulty to do one on lightning ?

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Szabo wrote about this back in 1999: https://nakamotoinstitute.org/library/micropayments-and-mental-transaction-costs/

Small payments (which might include what people now call "value for value" as well as "zaps" or other very low value payments) have too high a hassle factor (not because of the tech so much as the irritation of needing to spend mental effort on such low value things).

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good question

IMHOP these can be addressed with precisely the tech eCash will have such as thunder and bitnames, UX designed around these for example will beat banking UX, even today

let's see what Paul says

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