Basic Questions For Coil

Hi. Austin from Ampled here.

I’m concerned some basic information I can’t find on the Coil site. Maybe I’m missing something?

  1. How is the money actually distributed from the pool? What is Coil’s revenue model?
  2. Who owns Coil? Is there an exit strategy? We’d be uncomfortable trusting monetizing our site through an opaque privately owned company that has enough resources to offer large grants, but not to put some explainer videos on its site.

I’ve dug in for hours (on youtube, searching through Google/ crunchbase, and youtube videos) and can’t find this basic information.

Also, the I know that part of Coil’s value proposition is to address subscription fatigue, but isn’t monopolization and consolidation on the internet worse? What does success for Coil look like? All internet users paying Coil $5 a month and then distributing it with a comparable level of transparency? I’m not sure that sounds like a healthy internet ecosystem.

Hi Austin,

Hopefully I can answer your questions about Coil (and our relationship to web monetization). We don’t currently have explainer videos on but we are working on them (I just joined Coil about a month ago; this is a gap & priority).

You can see Stefan Thomas, the founder of Coil, talking about Coil & Web Monetization at Mozilla’s View Source conference: https://www.youtube.com/watch?v=ZckA-__R2sc

There is also an interview the W3C did with Stefan that, while written, goes into some depth: https://www.w3.org/blog/2019/09/w3c-interview-coil-on-interledger-protocol-and-web-monetization/

  1. How is the money actually distributed from the pool? What is Coil’s revenue model?
    The payout rate starts at $0.36 an hour and is streamed via micropayments while the user is active on the content. This amount tapers to a lower rate once the user has streamed $4.50. .50 cents from each subscription goes to Coil.

  2. Who owns Coil? Is there an exit strategy? We’d be uncomfortable trusting monetizing our site through an opaque privately owned company that has enough resources to offer large grants, but not to put some explainer videos on its site.

Coil is a startup founded by Stefan Thomas, and specifically provides the payment/subscription implementation on top of Web Monetization. We expect and encourage other providers, but since the Web Monetization API is so new we are currently the only one. Web Monetization as a technology is not proprietary - it’s open source & proposed as a web standard through the W3C

Success for Coil is web monetization providing, at scale, an open, private, and secure way for creators, developers, and publishers to monetize their content without relying on ads and tracking. Coil expects to
be one of many providers enabling web monetization but certainly not the only one. We agree that would not be healthy!

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Thanks for the thoughtful response. Yes, explainer videos or web pages would be great.

Is Coil a C-Corp? How much does Stefan own? How much of Coil do investors own?

I ask this because it seems like Coil wants to help content creators, but content creators keep getting screwed by investor owned corps extracting value or changing hands. I think there needs to be much more information if content creators are asked to cede control of something as important as monetizing their work.