X (formerly Twitter) is making a significant shift in how it compensates creators, with a new model focused on driving engagement among Premium users. Starting November 8, 2024, X will no longer share ad revenue with creators based on how many verified users see ads in their replies. Instead, creators will earn money based on how much interaction they receive from X Premium subscribers. In other words, the more engagement you get from people who are paying for X Premium, the more you can potentially earn.

This move seems to be part of X’s broader effort to boost subscription revenue after facing a substantial dip in ad sales—reportedly dropping by 50% since Elon Musk took over. Previously, creators earned based on ad impressions in replies, but now X is hoping to motivate more interaction between its Premium users, who already get priority placement in replies.

The new payment model could create opportunities for some creators to earn more, especially if they’re good at fostering engagement. However, there are concerns that it could encourage more superficial or even manipulative content designed to generate quick interactions, potentially pushing more genuine discussions aside.

X has stated that it will monitor for artificial inflation of engagement, but only time will tell how effective these measures will be. The company has outlined that up to 25% of Premium subscription fees will go “directly to creators,” although it’s still unclear if this will result in higher overall payouts compared to the previous ad-based model.

This change is generating buzz among creators, but skepticism remains. Many users have previously voiced frustration with low payouts, and it’s uncertain whether the new structure will be an improvement or simply shift the pressure toward garnering engagement from a smaller, paying audience.

It’ll be interesting to watch how this plays out as X continues to navigate its post-rebranding phase.