What is the next hot spot for NFT?
1. What is SocialFi?
After the advent of the DeFi era, NFTFi and GameFi exploded one after another, and SocialFi has high hopes from the community. In fact, in the first half of 2021, many new projects with the SocialFi concept are joining this track.
SocialFi is actually a combination of Social and Finance. We can obtain more benefits through the financialization and tokenization of our own social influence. With the blessing of DeFi, the “Fi” in SocialFi has shifted more from the meaning of “Finance” to “DeFi”. It is the combination of social and DeFi, or more simply, the combination of social media and decentralized finance.
In fact, this concept has been around since 2017, such as Steem, YeeCall, GSC, NRC, etc. However, due to the lack of market interest at the time and the technical limitations at the time, the SocialFi project was suspended midway.
As the on-chain economic system built by DeFi gradually improves, SocialFi can help users increase their income with a new way of expressing self-worth.
Since the beginning of 2021, BitClout and many other decentralized social platforms similar to Twitter, as well as the famous social platform http://V.cent.co, have been used in the platformization process Use blockchain technology to promote SocialFi.
2. Concept classification and Token of SocialFi
Social Tokens are defined as “a token supported by a personal reputation, brand or community.” Social tokens are built on the premise that the value of the community will continue to increase. above. Among them, casting and distribution, and content capitalization are the more mainstream project concepts.
Social projects manage the communities they create by issuing coins. They can divide levels according to the activity and contribution of users in the community and enjoy tokenized rights for creators and cultural production. investors and relevant participants to increase their profits. Currently many tools can support it.
Most social tokens are based on ERC-20, and mainly carry out technology extension and project innovation from four main directions: distribution model, asset preservation, token model, and community management.
From a functional perspective, personal tokens, community tokens, and social platform tokens are the major categories. Under a more detailed classification, social platform tokens tend to emphasize the generation of value circulation within the platform, and social tokens emphasize more on the services and value provided by individuals. The Dao organization, liquidity mining and other methods have also promoted the development of community tokens, and many projects also overlap with other concepts.
Currently, the existing social token distribution involves personal financing, private communities, fan economy, platform subscriptions, sports entertainment, personal funds, community brands, etc.
Web 3.0 demonstrates the value of personal data sovereignty, which coincides with SocialFi’s philosophy – SocialFi hopes that creative individuals will 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.
If Web3.0 wants to develop, more Web2.0 users need to enter the Web3.0 network, and the new decentralized social network will become the driver of the development of Web3.0 force to promote the large-scale application of Web3.0.
The industry needs hot spots to take over the market. After Metaverse, GameFi and NFT, SocialFi may become a new market hot spot.
