Web3 Social Networks Can’t Rely on Money Incentives Alone


Web3 social networks want to supply a treasured expertise past financial incentives for participation, says Johnny Lyu, the CEO of KuCoin.

The arrival of blockchain know-how permits for decentralizing many ideas. One widespread choice is creating alternate options to social media networks and rewarding customers for contribution and curation. Steemit is one instance of how to not method that enterprise mannequin, though it additionally affords some beneficial classes for future tasks.

Steemit Had Promise

When Steemit first got here round, many crypto fanatics noticed advantage within the platform. As a Reddit-esque clone based mostly on blockchain know-how, the system would let anybody contribute content material and doubtlessly earn rewards for doing so. Customers would govern which posts they thought of beneficial, and the remainder would routinely disappear into obscurity. Upvoting and downvoting content material is a superb option to curate third-party contributions.

Nonetheless, Steemit went one step additional by including a price ticket to each submit. The value tag was depicted in $STEEM tokens, which had been to be awarded to the submit’s creator for his or her submission. Furthermore, customers who upvote or downvote content material can be rewarded too, because the system supplied incentives to energetic contributors throughout the board.

The STEEM tokens served as a governance instrument for Steemit too. Extra particularly, customers might earn Steem Energy by posting, voting, and sharing computing energy with the community. The upper one’s Steem energy, the extra upvotes or downvotes matter, giving Steem Energy homeowners vital affect over the ecosystem. It was an fascinating concept however one of many a number of causes for Steemit’s eventual collapse.

Deadly Flaw

Linking the voting energy and e-user’s crypto holdings – in STEEM< Steem energy, or in any other case – was a deadly flaw from day one. Extra Steem energy doesn’t make one person higher than some other, nor ought to it affect how a lot sway they’ve on the broader neighborhood.

In the end, the neighborhood break up into two camps: one on the Hive blockchain — by means of a Steemit fork — and one on the unique platform.

The ability wrestle surrounding Steemit exhibits how tough it’s to construct decentralized social media platforms the place monetary incentives play a vital function. Introducing a brand new token is ok and dandy, however combining financial worth with governance is just not essentially the sensible method. Furthermore, it confirms how founders of such platforms ought to by no means be allowed to amass such huge sums of tokens earlier than launching their product.

Web3 Social Networks: Can They Do Higher?

As Web3 is without doubt one of the hottest matters as we speak – primarily as a result of it empowers customers – one should marvel how future social networks will function. Decentralization, community-powered, advertising-free, and self-monetization choices for content material contributors are simply a number of the advantages one can unlock. Nonetheless, one can’t be a trade-off for the opposite, and hanging a steadiness between these totally different features isn’t simple.

Each time customers are rewarded for performing actions on social media – sharing content material, upvoting, commenting, and so forth. – there’s additionally an incentive for dangerous conduct. Eliminating copycat content material or collusion is paramount but troublesome to realize or implement. Enabling content material creators to earn cash is a robust idea, however one ought to by no means overlook the potential pitfalls both.

Builders of Web3 social networks want to contemplate whether or not a local token is even crucial. Granted, it might function a reward, however making it a governance asset is a tough endeavor. Massive stakeholders will attempt to sway communities and get the complete platform to play by their guidelines, like what occurred to Steemit.

Introducing a DAO-style construction for governance could alleviate a few of these issues. Nonetheless, Web3 social networks require a threshold to introduce equal voting energy to everybody no matter token holdings. Which may be difficult to beat, however it’s not unattainable.

web3 social networks

Web3: Key Challenges

There may be super potential when decentralizing social networks. Empowering customers fairly than companies and rewarding them for his or her consideration are intriguing concepts. However sadly, companies like Steemit verify how troublesome it may be to develop a viable long-term method to decentralized social media.

Even with the rising concentrate on Web3, these essential drawbacks don’t go away. Extra emphasis on rewarding customers is constructive, however the infrastructure must create a stage enjoying subject. People and entities will all the time attempt to recreation the system and make it bend to their will. Avoiding that pitfall would be the key problem for Web3 social networks.

Bought one thing to say about Web3 social networks or anything? Write to us or be part of the dialogue in our Telegram channel.

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