Earlier this month, free speech video-sharing platform Odysee announced that it would no longer use Stripe as its payments processor, and now more details about the new monetization model have emerged.
Going forward, the primary currency on the platform will be USDC, a stablecoin (this is a type of cryptocurrency pegged to another asset – this particular one, to the US dollar).
The reason for the switch, a blog post explained earlier, is that Stripe was not only denying service to some Odysee creators citing the company’s policies, but went on to demand that Odysee “restricts” i.e., demonetizes its own users – “because they don’t align with Stripe’s policies.”
And Odysee was supposed to do this by incorporating third party “moderation” tools – and target even those users who were not using Stripe.
Drastic to the point of being absurd, is how all this reads, and Odysee saw no choice but to drop Stripe. Now, users have learned that a blockchain-based system is taking its place, and what they can expect as that transition is taking place.
Odysee users are warned that while gaining more autonomy in terms of the payment system, the onboarding experience may not be as “seamless” as it is with traditional processors, but those behind the platform also suggest this will be the case during the initial changes of the deployment of the new model.
Regarding USDC, it is noted that this is a 1:1 value US dollar equivalent token and that Odysee will use a service that allows buying USDC with credit or debit cards, or bank accounts.
A blog provides information about the mechanics behind this, and the way USDC can be withdrawn. On the platform, the token can be used the same way transactions were done until now – to tip, buy content, or membership.
The post also lists and explains the main differences between Stripe and USDC-based payment systems – and why the latter is a better option.
“Removing Stripe or any other similar payment processor from the equation provides greater freedom and significantly reduces transaction costs for both users and creators. Additionally, Odysee will no longer take a cut of any transactions,” the post reads.
This is because users and creators will manage their money using a cryptocurrency wallet.
