Original title: "After GameFi, how does SocialFi complete value discovery and capture? ", by Morty
After DeFi Summer, many market hotspots such as NFT, GameFi, and Metaverse have emerged in the encryption industry, and people who have not successfully grasped the hotspots look forward to planning the next market hotspot in advance. And SocialFi is a future direction that many people are optimistic about - social networking is a strong demand of Web3.0.
Learn about SocialFi
SocialFi is actually a combination of Social and Finance. We can gain more benefits through the financialization and tokenization of our social influence.
For a better understanding, let’s take a look at GameFi first. GameFi is a brand-new gameplay that introduces DeFi gameplay into blockchain games, in which players can earn income by playing games. And this is the most important part of GameFi "Play to Earn (earn while playing)". Among them, the most famous blockchain game is Axie Infinity, whose daily income even exceeds that of the well-known mobile game King of Glory.
DeFi has built a complete and self-consistent economic system for chain games, and players can share the profits brought about by ecological development with developers. The same is true for SocialFi, which is essentially a manifestation of personal value.
SocialFi has built a complete and self-consistent economic system for users, and everyone can gain benefits by demonstrating their own value.
In fact, the SocialFi project has appeared in 2017, but due to the direction of market attention and the imperfect technology at that time, many projects could not achieve considerable development. People at that time did not have a deep understanding of the concept of DeFi, so they could not pay attention to the value potential of SocialFi.
With the development of DeFi, more market hotspots have been discovered, and users in the encryption industry have a clearer and deeper understanding of Web3.0 and the concept of decentralization. Now we can look at the development direction of SocialFi from a richer perspective and build Come up with more imaginative agreements.
How to capture the ecological value of SocialFi?
GameFi's value discovery is completed by the "Play to Earn" model, players from all over the world can create and capture value by playing games.
The value contained in SocialFi is hidden in each interaction, and we need to demonstrate the personal value of content creators to capture the value from SocialFi.
Elon Musk once influenced the prices of Dogecoin (DOGE) and Shiba Inucoin (SHIB) on traditional social platforms through his personal social influence. But his influence is from the outside to the inside. These are just a few superficial demonstrations of personal value-of course, these few calls have successfully brought Elon Musk very considerable benefits.
We can think that this is a manifestation of SocialFi, or we can think that this is actually a monopoly of value capture by people with huge social influence.
And SocialFi hopes to form a self-consistent economic system by tokenizing its own social influence, so as to help more people with different levels of social influence obtain the benefits corresponding to their social influence.
What SocialFi wants to solve is two kinds of monopoly, one is the monopoly of traditional social platform giants on content creators - content creators can only get a small part of the economic benefits, and the other is the huge social influence mentioned above Powerful people have a monopoly on ordinary content creators.
Therefore, the ability of SocialFi to capture value depends on the size of its granularity - what SocialFi demonstrates is the display of personal value. Only by empowering the creative content and social influence produced by a single individual can more individuals be able to participate in the creator economy. Only by gaining benefits in the system can SocialFi's value ecology be able to develop and expand.
To be sure, SocialFi still has huge value potential waiting for us to discover.
Next, we might as well start from multiple ecological perspectives (platform, tools, NFT market, developer community) to understand the protocols of the SocialFi track:
Decentralized Social Networking Platform BitClout
BitClout aims to provide users with a new type of decentralized social network. Its architecture is similar to Bitcoin, except that it can support complex social network data, such as posts, personal data, attention, speculation and functions. Many people compare it to Twitter, but unlike Twitter, BitClout has launched two cryptocurrencies, platform currency CLOUT and Creator Coin (creator token). BitClout doubles its price for every million CLOUT tokens sold, with the ultimate goal of keeping the tokens always scarce. Users can use CLOUT tokens to buy and sell creator tokens Creator Coin, and the value of Creator Coin depends on how much users like creators.
Web3.0 portal tool Mask Network
Mask Network is a portal that helps users seamlessly transition from Web2.0 to Web3.0. It allows users to seamlessly send encrypted messages, cryptocurrencies, and even decentralized applications (such as DeFi, NFT, and DAO) on the platform of traditional social giants (Twitter). The new token issuance method ITO (Initial Twitter Offering) was pioneered by Mask Network.
NFT ecological treasury Whale Community
Whale Community was founded by WhaleShark, one of the largest individual NFT buyers in the encrypted asset market. WHALE tokens are indirectly backed by WhaleShark's NFT assets. WhaleShark has given its tokens a lot of empowerment, such as:
Specially purchase NFT works of WHALE partners (such as artists, games, collections, etc.);
WHALE can be paid at the price of 1 WHALE per minute in exchange for WhaleShark business consulting and other services;
Used to issue proposals or vote in WHALE DAO.
Web3.0 Developer Fund Gitcoin
The vision of Gitcoin, an open source software development incentive platform, is to support various open source projects through the blockchain and promote the development of the open source movement. Gitcoin can tokenize the open source collaboration mechanism on Github, encouraging developers to gain more income by helping others solve code problems in addition to their own interests and volunteers.
In addition, the Solana Foundation, together with Audius and Metaplex, jointly launched a $5 million Creator Fund to attract artists and musicians into the encryption field and help the development of SocialFi and Web3.0.
It can be seen that most of the SocialFi protocols we have access to at present provide more economic benefits for different groups of users with different professional abilities.
BitClout is aimed at the already influential Twitter V, Mask Network is aimed at Web2.0 users who want to explore the Web3.0 world, Whale Community is aimed at NFT investors, and Gitcoin is aimed at developers.
The content produced by content creators, such as text, music, video, pictures, etc., is often confirmed by NFT, and the development of the NFT market has also provided a stable foundation for the development of SocialFi.
And the tokens they launched are called social tokens. The value of social tokens often has strong community attributes and is issued by individuals or communities. At the beginning of the development of the protocol, social tokens are often supported by the reputation or brand of the token issuer. With more interactions between creators and social members and the flow of value, social tokens will have stronger value capture ability to gain more value. And community governance often takes the form of DAO.
The road to Web3.0
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Source: Coingecko: Social Money
Rally, the protocol with the highest market capitalization, only ranks 318th
Therefore, many people will ignore the importance of SocialFi to the development of the entire encryption ecosystem.
What Web3.0 demonstrates is the value of personal data sovereignty, which coincides with SocialFi's philosophy - SocialFi hopes that individual creators have more income rights. Therefore, we can regard SocailFi as a road to Web3.0, at least creators can see the landscape of Web3.0 in advance.
The more important significance of SocialFi lies in the construction of the Web3.0 economic system.
The development of Web3.0 requires more Web2.0 users to enter the Web3.0 network, and the new decentralized social network will become the driving force for the development of Web3.0 and promote the large-scale application of Web3.0.
Or we can be more myopic. The industry needs hotspots to take over the market. After Metaverse, GameFi and NFT, SocialFi may become a brand new market hotspot, detonating this autumn again.
