Understanding #SocialFi

With the hype and buzz of the Twitter ads revenue for creators, so many people have been going around Twitter creating contents, including irrelevant ones to earn a part of the revenue pool.

Why not allow me show you how you can also make money off social media, but this time on the Blockchain Space?

As you already know by now, I’m crazy about the DeFi space, because of the endless ways it can empower me, and even you without doing so much. You just need to have the right knowledge and the opportunities come to you on their own.

I discovered there are platforms that offer a Web3 approach to creating, managing, and owning social media platforms and user-generated content, there by empowering you as a creator. They are a convergence of Social media principles and everything decentralized finance stands for, hence why they’re called ‘SocialFi’.

At the core of SocialFi are content creators, influencers, and participants who seek greater control over their data, freedom of expression, and the ability to monetize their social media presence. This monetization often happens in cryptocurrencies as of course, #SocialFi uses the Blockchain for it’s operations. NFTs are also used to drive identity management and digital ownership. (I know you’re loving it already 😉)

Challenges of traditional Social Media

Most Web2 social media platforms monetize user-generated data, leaving users with little control.

Centralised censorship and a lack of digital ownership are also issues. Influencers often struggle to directly monetize their brand equity. 🤔

Can SocialFi Be the Solution?

Let’s explore how SocialFi aims to address these challenges and revolutionise the social media landscape.

✅ Building Blocks of SocialFi

SocialFi adheres to Web3 principles, focusing on key issues in Web2 social media. Fair incentive distribution is vital, facilitated by DAOs and social tokens.

✅ Decentralized Autonomous Organizations (DAOs) Rule

SocialFi platforms are structured as DAOs, designed to thwart centralized censorship decisions. With the advancement of blockchain tech, they handle the necessary throughputs for social media interactions.

✅ Introducing Social Tokens

Social tokens represent a new economic tier within SocialFi. Creators can have their own tokens and economies based on their social clout. Value is directly tied to the user’s influence. Social projects empower communities by distributing tokens based on user activity and contributions. This benefits creators, cultural producers, and community members. Many tools support these efforts.

✅ Engagement via Social Tokens

Engagement with posts often requires holding the creator’s social token. High token holders can have their messages prioritized, fostering meaningful interactions. Creators can set thresholds for direct messaging.

✅ Artists and NFTs

NFTs play a crucial role in #SocialFi. Creators can use NFTs as profile pictures, offering proof of ownership. PFP NFTs also grant access to exclusive communities and incentivise content promotion.

✅ NFTs Boost Distribution

NFTs enable artists to share proceeds with social token holders, driving engagement and sales. They also allow users to easily convert memorable moments into NFTs.

✅ High Expectations & Community Hype

With the rise of DeFi, NFTFi, and GameFi, the community has high hopes for SocialFi. In the first half of 2021, a wave of new SocialFi projects emerged, showing its potential in the crypto world.

✅ Early Stage Development

SocialFi is still in its early development phase. Most participants rely on social tokens for concept exploration and technical enhancements. Many projects blur the lines between SocialFi, NFT, and GameFi.

✅ Technical Foundations

Most social tokens use ERC-20 as their base and innovate in distribution, asset management, tokenomics, and community governance. Flexibility is key!

✅ Diverse Functional Categories

Social tokens encompass personal tokens, community tokens, and social platform tokens. They can focus on platform value circulation or individual services and value. DAOs and liquidity mining are also in the mix.

✅ Wide Distribution Spectrum

Existing social tokens span various areas like personal financing, private communities, fan economies, platform subscriptions, sports entertainment, personal funds, community brands, and more.

Watch Out for these Leading SocialFi Projects, as they explore the endless possibilities of #SocialFi! 🌐
@torum_official @steemit @CyberConnectHQ @desoprotocol @friendtech @PINsNetwork @Virtualversions @usediamond @sylo @cassavanetwork
@Maringoapp @rese_social

SocialFi marks a potential transformation in the realm of social media, tackling the shortcomings of conventional platforms while leveraging the capabilities of blockchain technology and cryptocurrency.