Creation of social value. Will SocialFi be your next destination?

Relationships are an important part of our lives today, but what new aspects of social relationships will emerge in the meta-world if all of our work is transferred to the future online?

A recently posted internal Facebook email describes the future of the meta-universe. The virtual user "Priya" in the email can interact and collaborate with others in the meta-world, as well as interact with the green "The Ogre". Marriage The meta-world not only shows the interdependence of actual community relationships, but anyone can independently create and disassemble the virtual self, eliminating all relationships and classifications from work. In the age of industrialization, we have created diversity. , expand relationships and communities. In this world, more and more social tools are inevitably needed.

Compared to application scenarios such as sports and finance, social networking may be less desirable. It has a larger electrical surface, closer to the daily life of human beings. , and used frequently. crypto business. The crypto industry is currently conducting a variety of experiments and research in the conferencing field, using blockchain technology to integrate social and financial support needs to develop a new type of SocialFi that can recognize the impact of individuals and communities with real value.

So what kind of thinking would SocialFi inject into a chat metasite? What is the value of a design organization? Will SocialFi be the next destination?

What is the value of a design organization?

SocialFi = Social DeFi, or Socialized Finance, tokenization, financial interference and DeFi for everyone can unlock their value and benefits.

In the age of the traditional Internet, UGC platforms such as Twitter and Weibo have conveyed information and content creation value to users, and at the same time gained a large amount of free content, they bring significant traffic on the website itself. The users themselves become the “digital workers” of these sites, giving the platform more time and energy, but to no real benefit.

SocialFi solves this problem by changing users from “employee” to “owner,” which is also a phrase of “recovery credentials for users” in the really important device on the blockchain. SocialFi supports creative and engaging content from all users for interaction, helping users realize personal value and sharing platform traffic and revenue.

It can be seen that SocialFi continues to be aware of the exchange rate as well as the knowledge of data exchanges thanks to the innovative financial integration of the blockchain. As more and more people benefit from this joint venture, SocialFi's value ecosystem will also continue to improve and expand, gradually creating a sense of accomplishment and fulfillment of the company. ecosystem of rich communities linked to business development.

But can the person or the community create value? How to participate in financial discussions?

In some cases, the value of community involvement is recognized. For example, several Twitter updates from Tesla CEO Elon Musk directly made Dogecoin the world's top 10 digital assets by market value this year, and the “Musk effect” has affected Dogecoin and others. . The value of property is testament to the major role played by personal energy. .

As another example, many community culture-based internet coins have been favored by the peace and media community, and the events economy directly affected by the communities. It turns out that the power of individuals and communities can create positive results, and how energy is used is a goal of SocialFi.

Social investment theory believes that social networks create value and that people can benefit from their unique position in the network. As a result, market capitalization and market capitalization can move towards each other within certain limits. For example, some of the Key Management Strategies (KOLs) are at the intersection of different organizations, without any data management and data flow, making it easy to compile data.

Thanks to blockchain technology, the process of solving capital market relationship exchange issues has become more efficient, making the declaration and export of tokens more visible and offering many new ways to save money. silver.

What kind of thinking does SocialFi bring to the conversation?

Since the start of this year, more and more new ideas and projects have appeared on the SocialFi track, and according to coingecko data from December 2, the market value of social currency stands at $ 1.44 billion. . However, SocialFi is still in its infancy and most of its operations are based on social tokens for other branches of the concept and use of the technology. Here are two tips for SocialFi to change not only the entire list of SocialFi ecosystems, but some of the most relevant or innovations.

(1) social life

Social tokens are tokens sponsored by an individual, brand, or community, and are designed to be a place where the value of the community can increase. Among them, the casting and distribution of tokens and the capitalization of content are the main features of the project. Performances include Chilliz, Zora, CircleUBI and Loopss.

This objective is to manage the community through tokens which can be divided into stages according to user activity and community involvement and to benefit from tokenization rights, thus increasing the income obtained from providers of well-known networks, developers and partners. Some work has been done in the music industry and all new forms of creative production have been created in fields such as literature. Likewise, there are some investment platforms like Gitcoin. This project will encourage developers to help each other and share the benefits by symbolizing open source collaboration.

Communities created by social tokens also work on investments, where communities can fundraise, find and research investments through votes and smart engagements. Taking Flamingo as an example, community members have the right to decide which NFTs to invest in, and they can share any NFTs that have been purchased or borrowed, repaired or used under their responsibility.

Currently, many assistive devices and related activities around social tokens are also adopted, such as the decentralized social token exchange platform DAOFi, community data monitoring and rewards SourceCred, a management platform. community rewards for Kickback and a reward management robot trick. cc u.c. , creating an ecosystem of social tokens at different levels.

(2) Decentralized social platform

Many projects in this area have attempted to introduce a token mechanism that allows users to control the platform through the use of large-scale social networks in today's world. For example, the BitClout project has received investments from large companies such as Sequoia Capital, a16z and Coinbase Ventures, and many Twitter celebrities have joined the community to build a reputation in the business.

For example, DeSo strives to create open source communication tools and follows a number of special projects focused on community relations in NFT digital art. As many features of the current relationship have yet to be realized, some apps have used new ways to enter the market, starting with home appliances and frequently used features. NFT data tracking function.

Another focus is the Web3.0 portal tools that support native media-less platforms to connect with key audiences through social media tokens, allowing platforms and users to seamlessly switch between Web2.0 to Web3.0. Support. Some work in this area has resulted in new, more decentralized products. Instead of integrating personal information into other platforms and users like the internet process always does, they become plugins and create your own products. Logic is delegated to multiple objects. . In addition to allowing users to change their management information without incident, these products can receive more information about the status of users and users while discussing the importance of the service.

Will SocialFi be the next option?

One of the trends in the explosive growth of hotspots like NFTFi and GameFi since DeFi Summer last year is that “Fi” remains the same, but the distribution has expanded further due to the prefix change. In other words, as the user base continues to expand, the development of the blockchain industry has moved in the direction of "regional differences", but it has always been resolved on the key issue of "How to use digital tools to create more". For these reasons, will SocialFi be an extension?

SocialFi tracks the finances of blockchain technology itself, its social monetization content is nothing new. Now, there are many practices on the Nem Internet, which can be included in three ways: product monetization, financial reporting, and services. is. However, there are some issues with our method.

Let's take a look at the hardware first. Whether it's a popular online business or a small circle of friends, you need to empower potential customers by engaging and promoting your products through relationships and trust. However, there are times when the performance does not work, In some cases the discussion in the forum and the business seem to be different, and even the market is destroying relationships. This happens more often in small businesses that pay more attention to personal relationships. Many people avoid or even hate the ad in their circle of friends.

The purpose of ad monetization is to sell the colors of the people included in your ad to advertisers. This approach also comes up against discrepancies between content and business and social and economic.

Finally, services benefit, agents' access to streaming and paid content, and developers benefit from the constant delivery of content. The problem with this model is that the masters of the platform deal with the distribution of content and the load of heavy objects by different developers, so a lot of good jobs are buried in algorithmic biases. In addition, the platform attracts a lot of money, which reduces the real income of developers. On the other hand, information on the internet can still be printed and sent for free, but there is no efficient equipment to weather its costs, resulting in revenue issues. People create and normalize conflicts. .

SocialFi's solution to the above problems is innovation.

In response to the issues of product monetization and ad monetization, SocialFi has created a new sales force, creating meaningful communication for celebrities and fans online. Online celebrities can set up and configure personal tokens through activities such as Rally, Live Chat reputation directly affecting token value, and fans holding tokens to share rewards with celebrities. It's all the money, time and emotion they pay for. The maximum exchange rate can be achieved without falling into the hands of some trade organizations. In this case, Internet celebrities do not have to compromise their reputation by relying on products or advertising, and their income is stable.

In response to the problem of monetization of services, SocialFi has created a new industry of creators, which has revolutionized the way creators and fans are affected. The simplest model is to use NFTs to symbolize ownership of digital content through fan funding and distribution legislation, creating a closed loop of content based on production, investment, exchange and use. DAO, a combination of content design, loose connectivity and more, makes production more efficient.

It can be seen that SocialFi's business model not only creates a community of 'uses' by using the community as a service or a business purpose, but also continues to leverage the community's fan base and bring benefits. strength to its limbs. Track. A community of joint ventures or businesses as a sort of "manufacturing" community.

However, there is still speculation that SocialFi is just decorating a cake that is very different from DeFi. DeFi's decentralized procedures have solved some of the difficult and deadly problems of the traditional financial industry, but the relationship does not cope with these problems, so the transformation of SocialFi will not be as rapid as DeFi.

The development of SocialFi is still in its infancy and the ideals of many parties have yet to come together. It is up to the investors to decide for themselves whether it will become a place of exit.