SocialFi is not as simple as "posting to earn money"; it attempts to reconstruct the content relationship network using a token mechanism. To succeed, it must ensure a smooth experience, high returns, stable incentives, and authentic content. The most critical factors are: having real users, real content, and real interactions. Only in this way, only in this way, can SocialFi truly transform Web2 traffic into Web3 assets and turn social networks into "value networks."
Having discussed RWA, let's look at SocialFi/content platform projects.
What does SocialFi do?
SocialFi is a combination of "social + finance," simply put, it is a "decentralized Weibo" or "decentralized video account" on the blockchain. It integrates content creation, social interaction, and token economics, hoping that users can not only post and like but also earn income through creation, interaction, and influence, achieving "content monetization" and "de-platforming."
SocialFi aims to bring hundreds of millions of Web2 users to Web3, facing more challenges:
1. Poor user experience:
Many products feel like "knockoffs" of Web2, with simple interfaces, slow loading times, and limited features. Registration requires connecting a wallet, claiming tokens, and signing authorizations, making the barriers absurdly high. You even have to pay Gas fees to scroll through posts; who can stand that? A survey in 2024 showed that 90% of Web3 social platform users do not stay longer than 7 days, with the main reason being "it's not user-friendly." Some say the experience is as bad as "challenging high-speed trains with bicycles."
2. Low earnings for creators:
Web2 platforms take a heavy cut, but they have many users and ads. Although SocialFi uses tokens and NFTs to increase revenue sharing, in 2024, the average monthly earnings for creators on Lens Protocol were only $50-100, because the total active users in SocialFi were only 1 million, and Lens's daily active users were even less than 20,000. At this scale, making money through creation is harder than in Web2.
3. Imbalanced incentive mechanisms:
The original intention of SocialFi was "creation has rewards," but the incentive logic can easily spiral out of control. It's either "gaming the system" or "platform tokens crashing." For example, Friend.tech was very hot in its early days but became extremely cold later, which is a typical case. A bunch of people rushed in for the airdrop, but no one really cared about the content.
4. Difficulty in assessing content value:
You can earn money by posting and liking, but what kind of content is valuable? Likes, comments, and shares—these Web2 metrics can be easily manipulated in Web3. Without a "decentralized + trustworthy" content evaluation mechanism, users can easily become "digital farmers" rather than creators, becoming tools manipulated by the incentive system.
Now, looking at this SocialFi project, what problems does it solve?
You say your experience is good; have you achieved "Gas-free interactions"? Has the registration process been optimized? Do you have a smooth user experience like Web2?
You say your incentives are healthy; is your incentive model resistant to exploitation and inflation? Have you truly incentivized "quality creation" and "real interaction"?
You say the value of your content can be measured; what evaluation mechanism are you using? Is there AI + on-chain behavior analysis?
You say your content has asset properties; how do you handle copyrights? Is there a user rights confirmation mechanism? Is there on-chain proof?
Ultimately, we must return to these three points:
- Are you freer, fairer, and able to earn more than Web2? Is it better to use than existing SocialFi?
- Do you have mechanisms or technological innovations? For example, content asset binding identity, on-chain reputation systems,
- Are there real creators using it? Is there real content circulating? Is there a real community active, rather than just self-indulging by climbing rankings and earning points?
SocialFi is not as simple as "posting to earn money"; it attempts to reconstruct the content relationship network using a token mechanism. To succeed, it must ensure a smooth experience, high returns, stable incentives, and authentic content. The most critical factors are: having real users, real content, and real interactions. Only in this way, only in this way, can SocialFi truly transform Web2 traffic into Web3 assets and turn social networks into "value networks."
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