It's essentially "Twitch Drops", but instead of viewers earning in-game items, money is sent directly to their personal wallets from a collection of faucets – one for each streamer and game category. The money comes from fans or - in my case - the streamer, and hopefully later, we will see brands, talent agencies and even game developers funding the faucets. Streamer's don't even need to set it up themselves; most of the streamers that have been active on nanodrops weren't even aware.
Here's one of the first comments I received:
"Huh, it's one of those ideas that first you go "that's dumb as shit. They should be embarrassed for even thinking that was going to work" but then you think about it some more. And then suddenly it's not quite as dumb. And then you start thinking how it actually follows previous advancements and changes in the Internet economy landscape and now I'm at the stage of "damn, that might actually make sense and work".
Because what is this if not advertising? Either way you pay to get viewers, why not pay them directly? Of course not forever, but to be discovered? You can easily set it up so you pay for the first X hours. And if people make new accounts just let them, in the grand scheme of things it's no worse than how advertising spend works today.
It's literally cutting out the middleman, and I also think the timing makes sense. We've collectively come to accept that we're the product on all the free services we use, after having that hammered into us over the last few years. So the logical next step is profit sharing, the product getting something more back than just entertainment, especially when we do more than just passively consume, when we add to the experience for others via comments or an active chat for a livestream."