SocialFi stands for Social Finance. It is a combination of social networking and finance on the blockchain. The SocialFi space allows users to earn extra income from creating content, communicating with other users, participating in entertainment, and playing games.
Decentralization, openness, and user empowerment are all goals of SocialFi. SocialFi is a Web 3.0 platform that promises to update traditional social networks. Power will be distributed to customers rather than concentrated in a middleman.
We can observe that companies like Google, Facebook, and Twitter are currently in charge of data and consumer usage procedures. As a result, SocialFi was created to aid the transparency of all data. additionally, improving user account security
Just like DeFi or GameFi projects, SocialFi will also issue tokens, then make these social tokens the core of the project.
There are 3 different types of social tokens:
- Personal token: You create your own social token in your own name, value it, and distribute it to your fans. Owning a personal token allows fans to access private groups or read exclusive content published by you.
- Community token: Same as above. If you join a certain smooth game guild, to connect you and other members, they will issue their own tokens.
- Social platform token: A token issued by social platforms. They can use it for collateral, locking, or even community governance.