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1.3. Social-Fi

Web 3.0 Social Media Platform - Example and Successful Case

What is Social-Fi?

Social-Fi integrates a financial layer into social media platforms, allowing them to behave in a decentralized manner without relying on a centralized authority. Social-Fi adopts the blockchain to incentivize content creation and secure the network. No single entity has control over the revenue, user data, or moderation. These social media platforms have no intermediaries to target or profit from information normally stored on centralized servers.
Social-Fi allows users to demonstrate that their content supports the social platform; thus, they are rewarded with tokens from the protocol, which can be used to unlock advanced features or pay for services.
Incentivizing content creation with cryptocurrencies native to the platform eliminates unnecessary parties, encourages new content to be created more easily, and assists in attracting new users by making the community user-owned.

Why does Social-Fi exist?

Although people have long been accustomed to traditional social platforms, as they expand gradually, various problems arise, including:
  • Different review benchmarks: These platforms often delete certain content that is not a problem at will but retains speech that promotes discrimination and hate
  • Bad Algorithm: You can't see what you're looking for but forced to watch a bunch of ads and sponsored content
  • Uneven profit distribution: The high-quality content people create brings traffic to the platform, but they do not necessarily get corresponding profits from it (for example, even if you get numerous likes on Facebook and Twitter, the official will not give you rewards - you are likely required to rely on external earnings)
  • Information Security Issues: User data leakage often occurs.
Out of dissatisfaction with the above problems, some people thought the issues of traditional community platforms could be solved through the blockchain, which gave birth to Social-Fi.
Social-Fi returns the ownership and governance rights of the platform to users through a decentralized mechanism. The entire community can formulate a review mechanism while avoiding annoying algorithms. Users can only see the people they track without being harassed by advertisements.
Creators can also financialize their social influence on the platform and earn income through sponsorship, content mining, and other mechanisms, without the staggering fees charged by the platform in the middle.
In addition, due to the high intrusion cost of the blockchain and the anonymity of users, it also responds to the problem of personal information leakage. (Although it does not mean that it will never be invaded, the threshold is nevertheless much higher where users are less at risk)

Type of Social-Fi

However, Social-Fi is currently in the early stage of development, and its applications are mainly based on social tokens. Technology extensions and project innovation are carried out in four directions: distribution model, asset storage, token model, and community management. In terms of functionality, it can be divided into three types: personal tokens, community tokens, and social platform tokens.

Personal Token

Personal tokens are issued purely by individuals. Buying this token means supporting that person or what they want to do. It is suitable for Internet celebrities, live broadcasters, and KOLs who are thinking about how to monetize their traffic. Personal tokens also give influencers various modes of operation. For example, when they hold parties and events in the future, users with a certain amount of fan tokens can enjoy different services (similar to the VIP system for fans).

Social DAO Token

People who hold common community tokens can form a DAO organization. They are likely to share the same goals, such as raising funds to buy NFTs, exchanging ideas, or sharing experiences, creating a solid centripetal force in the organization.

Decentralized Platform Token

Community platform token are issued by the Social-Fi platform. Users who hold the token can make proposals for future development, including amendments to profit sharing, introductions of new functions, etc.

The successful case of Social-Fi

Mirror: The Creation Platform that Lasts Forever

Mirror is a decentralized content publishing platform built on Arweave (a decentralized data storage protocol that can store data permanently and extensively). Once a user publishes an article on the platform, it will be stored in Arweave for free, and it can be minted into NFT to transfer, sell, or even initiate NFT crowdfunding.

LikeCoin: Like to Earn

LikeCoin was established by renowned blockchain writer Gao Reconstruction. It attempts to provide Web2 creators with an entry into the Web3 ecosystem. Creators can register as CivicLiker at LikeCoin and add LikeCoin plugins on traditional Web2 pages or platforms.

ShowMe: Social like doing Game Tasks

ShowMe uses NFT technology to build its community and proves the eligibility of its subscribers, allowing creators to control subscription models flexibly. ShowMe proposed the concept of PONA (Proof of NFT Achievements). All users' social behaviors on the platform are recorded and saved as NFTs in an effort to help creators reach users more precisely through gamified social NFTs.
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