"To illustrate the point, I let's use the example of Facebook. Facebook as a company is a hybrid entity.
It uses a 21st-century technological stack that allows a decentralised creation of value — people create value for each other on Facebook by uploading millions of posts, photos and videos. If you want to access this content — you have to join Facebook.
But economically Facebook operates on the 17th century 'legal stack' of a joint stock company. It has to generate returns for its shareholders and legally that's the primary purpose of its existence.
So value created by millions of users is extracted and converted into capital returns for a small group of FB shareholders. The mechanism used to achieve that is simple — sell users' attention to advertisers.
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