Nostr is for freedom and self-sovereignty, and those are and will always be more inconvenient relative to centralized solutions. That’s why Nostr will always be niche. Becoming mainstream means facing preassure from regulators and governments. With current relay centralization that would be bad news for Nostr, for freedom and self-sovereignty. As a niche protocol Nostr will never die, becoming a relevant source of freedom for the average Joe, still a long way to go, if desirable at all.
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This logic only holds if the protocol is financial sustainable. As of now Nostr is heavily subsidised, to the tune of more than $1m per month.
Interesting! What’s the source of such a number?
Just quick cobbling together of numbers openly shared by OpenSats, HRW, &otherstuff crew, others. And some conservative assumptions for ongoing investments from VCs like ten31, Hivemind.
The true amount is likely much higher.
Interesting. I would imagine that the hope is to revert this trend. Nostr is still not really appealing even for freedom projects, libraries and maintainers, so there’s a long way to go even for a niche protocol. And as you said economics will tend to make sense over time for all actors involved, for good or worse.

Yes. How do Nostr devs earn a living if not from investment and grants? You need millions of people excited to pay at regular intervals for what these devs are developing. That's a tall order.