SocialFi is not about subverting social networks but based on them

SocialFi, as the name suggests, combines social networking and finance, but the definition of SocialFi is often ambiguous. Some people think that SocialFi is a variant of DeFi, while others put SocialFi in the context of DAO and Web 3.0.

But in any case, what SocialFi emphasizes is decentralization, openness, and user ownership.

SocialFi’s emphasis is on taking user ownership back from social media platforms like Facebook and Twitter, leaving it up to users to decide whether to monetize their social media influence.

As for how SocialFi will take ownership from traditional social networks and establish a new order, it is clearly still being explored.

We have to admit that traditional social networks still dominate and will continue to dominate this market. In fact, SocialFi at this stage was originally born out of social networks – people discuss SocialFi with familiar or unfamiliar accounts in social networks. project, and the success of the SocialFi project depends on its influence in the social network.

So the real SocialFi platform should not be to reconstruct a new decentralized Twitter or TikTok, but to provide some functions or services based on existing social networks.

Existing social networks are still regarded as alternative new things because of their short birth time, ignoring that they have become the infrastructure of society, like water, electricity, natural gas, railways, and optical fibers.

Those who try to redo a decentralized social platform underestimate the difficulty of building a social platform, and they may not be able to create and operate a group buying group in a community.

SocialFi, which has a real possibility of landing, should provide various services, allowing participants to invest and profit from it, and social tokens are the core of the project.

There are roughly three types of SocialFi’s social tokens.

personal token

Assuming you have a fan base, personal tokens are tools to help you engage and stay connected with your fans. Such as granting access to exclusive content to fans who hold tokens.

community token

Essentially the same as a personal token, but it is issued by a specific community, such as a gaming guild, or various DAOs.

social platform token

In essence, it is the same as the community token, but it is issued by social platforms and corresponds to various permissions, but it is more extensive. It can be said that almost all existing Internet platforms can be rebuilt with platform tokens, but this simple chain modification is meaningless.

Personal tokens are basically driven by Meme, and it has the same logic as the Chaowan collectibles market – timeliness.

Community tokens correspond to DAOs that are currently being tried in various ways. At present, DAOs are very suitable for temporary public welfare activities. For example, they have shown some effects on the Ukrainian battlefield this time.

The reason why DAO is very suitable for “temporary establishment of public welfare activities” is that the corresponding long-term operating for-profit organizations obviously play an important role in many fields, and there is no need to replace them.

However, if it is not driven by direct interests, but participates for a common lofty goal, for-profit institutions are often absent, and short-term sudden goals are more suitable for temporary response and assembly on social platforms, and then participants do their best. can.

Social platform tokens are not suitable for directly benchmarking existing Internet social platform giants, but are more suitable for providing services in subdivided tracks. For example, STEPN is a subdivided track of health-sports-running. Of course, the Meme attribute is indeed relatively strong.

Finally, to sum up, SocialFi is the combination of social network and finance. Social network does not mean to reconstruct a new social network platform, but to provide some functions or services based on existing social networks, and the core of these services is social network. Exchange tokens, just like game tokens in GameFi.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/socialfi-is-not-about-subverting-social-networks-but-based-on-them/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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