The video transcript discusses the pitfalls of traditional advertising models on social networks, likening them to a 'resource curse' where the lucrative nature of ads prevents exploration of other business models. This model traps users by providing a single feed filled with advertisements, making it difficult for users to leave due to strong network effects. Blue Sky aims to avoid replicating this model by exploring advertising methods that are more aligned with user intent and choice. The goal is to ensure that user attention is not the product, but rather that users remain on the platform by choice, with the freedom to leave if desired. Any advertising on Blue Sky would need to fit into a model that respects what users and creators want, rather than exploiting user attention.