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#1666: VRChat CEO Graham Gaylor on Exploring Various UGC Monetization Strategies

September 30, 2025by kentbye

I did an interview with VRChat co-founder and CEO Graham Gaylor at Meta Connect 2025 where we talk about the various different monetization strategies that VRChat has been exploring with their user-generated content platform. VRChat announced layoffs for 30% of their employees back on June 12, 2024, and so this is the first time I’ve had a chance to interview any of the VRChat executives since then.

I used to have a pretty consistent streak of interviewing either VRChat leaders or employees at various VR conferences running from 2014, 2015, 2016, 2017, 2018, and 2019, but after the pandemic they were not giving as many public interviews. I did however recently cover the VRChat Avatar Marketplace as well as a conversation with VRChat’s new Trust and Safety lead Jun Young Ro about his plans to overhaul and modernize VRChat’s Trust and Safety processes, especially as users like Harry X were pointing out some gaps in their moderation processes.

I had a chance to chat with Gaylor about some of the early decisions in VRChat for making custom avatars easily uploadable since version 0.3.5 on March 16, 2014 when co-founder Jesse Joudrey made his first public contributions to the project. Joudrey elaborated on his vision of what he considered to be “one of the corner stones of virtual reality and any cyberpunk offshoot… Customization. I don’t want any limit on who or what I can be in virtual reality.”

I had dug up these dates and posts in the write up for episode #1408 where I went down a deep rabbit hole of tracing down some of the origin story for VRChat. Gaylor had actually passed along some early emails and documentation of the early days of VRChat for that write-up.

The decision to make avatars completely customizable has been part of the magic and success of VRChat. But centralized and controlled identity has traditionally been one of the core pathways for monetization. In a conversation with VRChat community members after the June 2024 layoffs, qDot told me, “You cannot put the asset genie back in the bottle for VRChat. They can’t just come up with an asset system that works this sort of centrally-regulated way now. Everyone is used to throwing these assets around, selling them on Gumroad, selling them on Booth.” So I had a chance to talk with Gaylor about his paradox of customizable identity being both the secret sauce of VRChat, but also the clearest traditional path for monetization.

You can see more context in the rough transcript below.

This also happens to wrap up my coverage of Meta Connect 2025, and here’s a recap of the different stories and coverage if you’d like to dig into more details of other things that were announced this year.

This is a listener-supported podcast through the Voices of VR Patreon.

Music: Fatality

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#1666: VRChat CEO Graham Gaylor on Exploring Various UGC Monetization Strategies