SocialFi is used by many investment firms like 16z: do you really understand?

Social DAO Friends with Benefits began funding in the first half of 2021 and came to a budget of tens of millions of dollars with an estimated cost of $ 100 million in early September. According to data from Footprint Analytics, the token's value increased 977% from $ 17.69 to $ 190.69 for FWB. ; In October, another a16z investment was launched.

Footprint analysis: FWB price (as of January 2021)

On November 4, the SocialFi Torum platform received an investment from the Kucoin Labs Fund, and on November 28, the SocialF Monaco Beta version project invested by Three Arrow Capital was launched in the community after its release, and invitations to access the platform have been launched for over $ 100.

From DeFi to NFT via GameFi, blockchain technology has been used and new versions continue. When Web2.0 became Web3.0, SocialFi could be next.

This article will help you understand ScoialFi from four angles:

Concept SocialFi

What does SocialFi solve?

SocialFi flagship project and documentation work

SocialFi events and contests

Concept SocialFi

SocialFi stands for Social Finance. In fact, it can be thought of as a combination of Social Fiance and Social DeFi. It basically means the organic combination of social and financial integration in the blockchain. SocialFi is characterized by distribution, openness and user control.

What does SocialFi solve?

In the age of Web2.0, interactions with user data are governed by user interactions such as Meta (formerly Facebook), WeChat, and Twitter. Moreover, when users continue to benefit from this social data, users benefit less. SocialFi specifically addresses some of the shortcomings of traditional chat.

Data attribution issues

In a normal social platform, user relationship information is stored in the form of fields of the operator's server, and the data belongs to the platform. SocialFi relies on blockchain technology and its weak data is ideal for solving user data analytics problems.

money sharing issues

In the algorithmic mechanism of existing social platforms, there is a mismatch in the distribution of benefits between users and platforms in carrying traffic, which does not help to protect people, enforce rules and interests. SocialFi is a way for users to make money. By redefining the impact on the relationship, lack of platform and other issues at number three.

Privacy and security concerns

In normal relationships, each registration number should contain the user's real personal information, and the information stored in the operator's background is very easy to root. . SocialFi is based on blockchain technology, and the anonymity of users' personal information is a matter of privacy and security.

SocialFi's major projects

Currently, most of SocialFi's business is based on token reporting. In other words, the significant value of SocialFi lies in the social token. Depending on the type of token, it is divided into personal token, community token, and social platform token, and each has a proxy position.

Personal token: RALLYE

RALLY, the popular private token advertising platform, focused early on on changing the relationship between developer and fans.

Developers can create and assign their own token, Coin Maker or configure NFTs directly from RALLY for marketing. Creator Coins are a form of certification, and you can enjoy similar benefits, such as joining a community conflict maker and purchasing certain items.

The base token on the RALLY platform, RLY, can be used to purchase coin generators and can also be exchanged for other tokens on Ethereum. Public sale hours are April 1-3, 2021, down from $ 1.38 compared to April 3. Now RLY can become the mining capital of Uniswap and Balancer.

Footprint analysis: RLY price (from January 2021)

Fans show their confidence in celebrities by using RLY to purchase coins, which allows developers to interact with producers. While the involvement of both parties is also high, RALLY will provide RLY as an incentive to distribute to developers and fans.

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mirror. xya

Mirror.xyz is the leading NFT content publishing platform and all entries can be printed on plain paper or embedded in images, videos and NFT content. The ads were kept permanently on Arweave and the NFTs were receiving commercial production at the time of publication. The platform now supports features like newsletter advertising, fundraising, community voting, and contests. Token trading will not be in circulation at this time.

friends with the results

Friends with Benefits is a new type of DAO and the first token is FWB. Originally designed as the server for the Discord Token Conference, it is now integrated into the digital city of Web3.0, attracting around 2,000 members. Invest in a16z and provide advice and support.

Now announced Tokengate Events App, NFT Gallery, Web3.0 based writing business, virtual music studio, real-time community dashboard and other mods. The next step is to focus on expanding DAOs into real life, working with communities in unique cities, and delivering real benefits to FWB members.

Social Platform Token: Aduius

A distributed music streaming protocol, Audius focuses on the music industry and its listeners. This is the main goal of musicians income generation and business platform integration, which is enhanced by platform rules, long-term monetization, platform unstable form and lack of relations with the public.

The platform's policy governing body is AUDIO, which can be used for lending, closing, and community management, starting with Binance UniSwap and FTX. The price rose to $ 4.03 on March 28 of this year, according to data from Footprint Analytics. In August, Audius announced that it was offering services on TikTok, and the price rose 106% from US $ 1.61 to US $ 3.33.

Footprint analysis: AUDIO price (from January 2021)

SocialFi events and contests

How relationships in the Web3.0 age is a deal that needs to be decided, and user groups are hoping the new relationships will turn into global relationships. respond to meta and correct shortcomings in existing discussions.

Transitioning to SocialFi also has its drawbacks, two issues that need to be addressed in order to become a Star Trek in the transition.

The monopoly interference problem: SocialFi is the key to expressing self-esteem and intuitively in the form of money. This would extend the monopoly content to some extent for early access or major disruption, which is unfavorable for modern users who enter the company late or have a less impacted experience. To research.

The price capture model needs to be improved: Now, SocialFi has two ways for users to make money. We expect gifts for creative content. It usually depends on the needs of the fans, called the hearts of every judge. The second is written for Eran, which has higher demands on algorithmic processes, and if the design is sloppy and inefficient, like Monaco Planet, the platform will be obsolete.

The future of SocialFi is here, and now the concept of Metaverse is still in development, and the potential of SocialFi has already been revealed. Going forward, as the Metaverse process slowly grows and ends, SocialFi could lead to a new wave, so let's look forward to it.