Problem Statement - The Flawed Promised Land of SocialFi
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Tokenized social engagement in the form of SocialFi holds much hope for a promising evolution in the Web3 space, as major bull runs have historically been ignited by innovations that ignite new realms of crypto possibility. Given its roots as one of the original blockchain use cases, SocialFi is well-positioned to be the driving force behind the next wave of market enthusiasm.
The nature of Socialfi has also created a market that incentivizes strategic content generation, and rewards content creators based on the number of engagements their content generates. Current social media determines one’s social capital based on their following.
Consequently, the demand placed on content creators is heavy and diverse. Maintaining relevance in the competitive SocialFi realm requires significant dedication and effort in generating valuable content, managing it across multiple platforms, devoting time to engage with the audience, and bracing critical feedback they may receive.
Rather than rewarding all participants, social media platforms often prioritize content creators while undervaluing the contributions of content consumers.
Content creators’ influence is based on their posts, which is a reasonable indicator of their charisma and influence, but not necessarily for other vital Web3 traits such as trading prowess.
On the other hand, those who excel at trading or other on-chain activities might not be recognized or acknowledged by the public. Their contributions to the ecosystem, while not content-oriented, play a vital role in the Web3 space, and these participants frequently find themselves unnoticed in the market.
