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a ponzi scheme is a scam in that with each layer or generation added, the expected future expectations and promises increase faster than the influx of "real" valuehttps://twitter.com/a_yawning_cat/status/1401524274200862721 …

each new layer is incentivized to add new layers in order to rise sufficiently towards the "top" in order to be profitablehttps://twitter.com/a_yawning_cat/status/1388219441263955968 …

however faith based hierarchical layers like communities and religious groups also grow in a pyramid fashion they are not scams when the growth feeds the utility of the group via networks effects++ they *are* "scams" when only the inner circle of the group has access to utility

if someone wants you to believe in sth b/c they think u would make a a great lieutenant dog to Spread the Word that's feels scammy vs "hey this line of thought is interesting feel free to believe in it as you please but only if it makes sense to you"

a mlm feels cultlike b/c as you rise towards the top your ability to broadcast to a larger audience increases the promised utility is marketing opportunity and it only becomes profitable pass a certain threshold

literal cults often have trouble monetizing this since instead of using that increased marketing to sell vitamins you can only sell... increased marketing opportunity... the promises never resolve into Real Stuffhttps://twitter.com/a_yawning_cat/status/1341269410686726144 …

it's like diligently climbing the social or corporate ladder and knowing people to know people to know people and eventually get a meeting with a Big Important and you realize you've fucked up b/c you have nothing to talk about to utilize the relationship

ponzi scams are difficult to distinguish the same way kickstarters who spend 80% of their budget on marketing and don't deliver are. there usually is at least some real intent to deliver. (and perhaps the marketing was even a necessity in some way)