The Next Social Renaissance is on the Blockchain — Here’s Why
Combining “Social Media” and “Decentralized Finance,” SocialFi is the latest crypto trend reforming how social media works in the modern age.
Think back to all the hours you’ve spent on Twitter, Facebook, and Instagram this past week. Now think about what tangible benefits you received from all that time spent on those platforms. Now I’m willing to bet that the answer to that question is that you’ve received next to nothing.
As of late, new types of social media platforms have appeared in the Web3.0 space thanks to the power of Blockchain technology. Following along on the trend of decentralized finance (a.k.a DeFi), the birth of SocialFi is bringing a new wave of social networks that will provide a whole new look at how we view social media.
What is SocialFi?
Combining the terms “Social Media” and “Decentralized Finance,” SocialFi is the latest and greatest crypto trend revolutionizing how social media works in the modern age.
SocialFi platforms allow users to “tokenize” their influence, creating a cryptocurrency that ebbs and flows depending on the influencer, their engagement, community, and other utility aspects.
Types of SocialFi Tokens
SocialFi tokens can essentially fall into three categories.
Personal Tokens
Personal tokens are social tokens that are based on an individual. Famous influencers can easily mint their social token and allow users to buy-in. Token holders can gain access to exclusive benefits such as discounts on merchandise, early access to content, and even monetary benefits depending on the system.
Think of personal tokens as the new way of supporting your favourite people on social media, just with more benefits! It’s like buying shares in Ariana Grande herself or joining her VIP club for exclusive benefits.
Community Tokens
Community tokens are used by a group or association that usually represent a niche idea. Think of community tokens as your membership to an exclusive club. Community token holders have all the benefits featured in personal tokens, but with the bonus of governance rights!
Like how shareholders have voting rights depending on the number of shares they own, community token holders can vote on various matters that may affect their community operations. Some community token platforms also offer access to revenue streams exclusive to the community.
For example, X World Games is coming out with a massive new project called “Dream Girls.” The goal is to create a virtual idol group based on characters from their insanely popular Dream Card game series. XWG will have a native token that fans will use to support their favourite Dream Girls. Fans can use this token to purchase exclusive merchandise and attend online concerts hosted by X World Games in our metaverse.
Social Platform Tokens
Social platform tokens are similar to community tokens because they are like a digital commune for token holders. Social platform tokens grant the same benefits to their holders but on a much larger scale.
$RLY (Rally), a social platform and token, provides users with the foundation and resources to tokenize their reputation. Influencers on Rally can have fans of their work purchase their own tokens hosted on the platform, acting as a personal or community token, but on a social platform. Holders of the platform token benefit from the platform growing in users and notoriety. Like in traditional investing, the more successful the company, the more significant potential for its stock price to increase.
Here’s Why SocialFi is a Gamechanger
For years now, social media platforms have easily profited from their users’ data in exchange for access to their platforms.
Do you remember the details of that terms and agreement page you agreed to when you signed up for Facebook?
Probably not.
Somewhere in those terms, a clause allows for the collection and sale of your personal data to eligible third-party buyers.
However, with social tokens hosted on the blockchain, user data collection is done transparently and in a way that can’t be tampered with by third-party sources. Traditionally, social media platforms like YouTube and TikTok have been profiting off user-generated content for years now, which was created free of charge for the platform. While those platforms do have partner programs to allow reputable users to profit off their content, it takes a lot of time and effort to meet the minimum requirements even to achieve that status.
With SocialFi platforms, users can mint their own cryptocurrencies and begin generating revenue almost immediately. Influencers will want to start their own crypto tokens to gain a larger following, while users will want to support their favourite influencers more so that the token price goes up, win-win! Last but not least, SocialFi creates an environment that easily facilitates positive interactions between creators and fans.
X World Games’ Dream Girls project redefines what it means to connect with a community. Through this virtual idol group, fans of the Dream Card series will be able to see their favourite characters come to life on the metaverse this year! Innovative ideas like XWG’s Dream Girls project keep the crypto community so dynamic and exciting, and with the rise in SocialFi platforms, there’s undoubtedly more to come.
So, what do you think about the new wave of cryptocurrency trends? Let us know in the comments below!
#SocialFiSummer ☀️
