What is a gift economy?

A gift economy is an economic system in which goods and services are given without any explicit agreement for immediate or future rewards. This concept was explored by Margaret Atwood in a conversation with Tim Ferriss. Atwood highlighted how artists often receive their inspiration as a gift. However, they need to navigate through the commercial world to bring their work to the public. Once the work is appreciated by others, it transforms back into a gift in the hands of the recipient.

In a gift economy, there are unique obligations associated with gifts: you are expected to pass them on rather than keep them. This system contrasts with the transactional nature of commerce, where goods are purchased and expected to deliver specific value 1.