Web3 Social Networks: Asset, or Ideology First?

Using economic interests and ownership to leverage Web3 social networking may be a pragmatic path~~

Written by: Li Jin

Social networking is a rigid need for Internet applications, and traditional Internet social platforms are currently highlighting the pain points of more and more users. From what angle does Web3 approach the solution? Creator economy KOL, Li Jin, partner of iant Fund, put forward her point of view.

I think there are two main construction paths in Web3 social network: assets first, or ideology first.

Asset-first pathFocus on users' desire for profitability, unlocked through digital ownership, which puts money at the forefront of the platform. The function of financialization allows users to consume, collect and earn money in the network.

BitClout fully aligns with the asset-first path and enables users to stake on the trajectory of famous personalities by trading Creator Tokens, creating a speculative social game at the heart of the network. Lens is another example of an asset-first Web3 social network, where user posts are instantiated as NFTs that can be bookmarked and purchased, with top creators earning up to $90,000 from bookmarkable posts. The PFP (Personal Profile Picture) NFT community can also be thought of as an asset-first social network: interest groups formed by collecting assets. In all of these cases, the motivation for user participation is not purely intrinsic, but involves the potential for financial gain, at least to some extent. It's like collecting stamps or baseball cards: it's fun and enjoyable, but at the same time, what if they'll be worth money someday?

In contrast, the ideology-first approach to social building for Web3 requires values and ideals that appeal to users. This means emphasizing blockchain-enabled features, including censorship resistance, data privacy, social graphs, and content portability. The actual user experience may be very similar to a Web2 social product, but the underlying architecture involves some data being stored on-chain, with all the benefits that come with it.

My view is that Web3 social networking will succeed by taking an asset-first approach, i.e. creating monetization opportunities that attract users. In other words, these networks are not purely social networks, but social economic networks. This approach also creates a more distinctly differentiated user experience that should theoretically resonate more broadly (income is a universal need, while ideals are abstract to many). This also mirrors broader adoption paths elsewhere in the cryptosphere, including NFTs, DeFi, and even L1 public chains: the desire for economic benefits guides new networks and applications and plays a key role in their widespread adoption.

To put it bluntly, leaning toward the asset-first path does not mean catering only to speculators and creating an easily manipulated financialization game. Social networks are easily polluted by spam and bad actors, which weaken the network and create negative network effects. Unlike DeFi lending protocols, where all liquidity is valuable, even if it comes from speculators, in social networks the quality of content and users matter. Simply rewarding the creation, dissemination, or use of all content is an economic incentive that is too blunt and risks creating an environment filled with junk or useless content, or one that is downright toxic.

A successful financial game at the core of a Web3 social network should combine intrinsic and extrinsic motivation. Stealcam, a content-sharing platform that earns a cut of the sale when fan-owned NFTs are bought at a higher price, attracts both for-profit traders, participating in the hot potato game of trading images back and forth, Also appealing to true fans who want to keep content made by their favorite creators as collectibles.

Taking an asset-first route will also allow the network to build new social graphs. Social networks are built around unique social graphs that form the basis of their network effects: Facebook started by leveraging your real-world friends/college graph; LinkedIn mapped your professional connections; and TikTok’s social graph is Based on your interests, inferred from your behavior on the app. An asset-based social network could pioneer and promote ownership graphs where users connect based on shared on-chain ownership. This goes beyond simply clustering users into PFP communities, which is a primitive version of this idea that we've already seen. As the density of a user's ownership history grows on-chain, this ownership graph can richly reflect a user's interests over time, complementing a user's professed interests or real-world connections.

All in all, there is now a unique window of opportunity to build Web3 social networks. Existing Web2 social companies like Twitter and TikTok are facing turmoil, and users are hungry for something new.

Our vision for a Web3 social network is rooted in leveraging the unique ability of cryptocurrencies to provide a differentiated user experience that rewards continued use.