Social Innovation Combining Web2 and Web3: Can Tipcoin Lead the SocialFi Trend?

A certain SocialFi project aims to enable high-traffic users to monetize their content and fanbase. The project utilizes a well-known social platform as a traffic entry point, attracting early users through a token airdrop, with the goal of creating a Web3 social platform.

The core gameplay of this project is to attract users' participation through token airdrops. Users only need to post, forward, and comment on content with specified tags on certain social platforms to earn points based on metrics such as views, likes, replies, and forwards. These points can be exchanged for project tokens at the end of each week. This project uses blockchain technology to ensure users' privacy and data security, while also providing users with more autonomy and profit rights.

The Social Transformation from Web2 to Web3

The project officially launched on September 1, 2021, developed by a team of blockchain enthusiasts from different countries and backgrounds. The goal of the project is to create a decentralized social platform that allows users to earn income through their own content and influence.

The target users of the project are those who have a certain amount of traffic on specific social platforms or wish to increase their traffic. Whether they are content creators, KOLs, or regular users, they can earn points by posting, sharing, and commenting on content with specified tags on the platform. Points can be exchanged for project tokens at the end of each week.

The project token is an ERC-20 standard token based on the Ethereum network, with a total supply of 1 billion tokens. The distribution ratio of the tokens is as follows:

• 35% for platform rewards
• 15% for the first phase airdrop
• 20% for the second phase airdrop
• 5% for the third phase airdrop
• 15% for liquidity provision
• 5% for marketing
• 5% allocated for team lock-up

Detailed Explanation of Project Gameplay

The core gameplay of this project is to utilize the traffic entrance of specific social platforms to attract users to participate, and to incentivize user activity and loyalty through token airdrops.

First, users need to bind their social platform accounts on the project's official website, create a project account, and then they can participate in the project's social activities on the social platform and view points and tokens on the project platform.

The activities on social platforms mainly involve posting, forwarding, and commenting on content with designated tags to earn points. Different proportions of points are earned based on the view count, likes, comments, quotes, and forwards of tweets; the higher the popularity, the more points earned, and the greater the weight for future airdrops. Points are calculated based on indicators such as view count, number of likes, number of replies, and number of forwards in social activities.

The formula for calculating project points is as follows:

• Publish original tweets with specified tags, with a points multiplier of 25. Points will be awarded based on metrics such as tweet views, likes, replies, and retweets. Up to 5 original tweets can earn points each day.
• When original tweets with specified tags are cited by others, the points multiplier is 10, with a daily limit of 10 citations eligible for points, and a maximum limit of 1 million points.
• Comment under others' original tweets with specified tags, the points multiplier is 5, with a daily limit of 10 comments eligible for points, and a maximum limit of 1 million points.
• Like original tweets from others that have a specified tag, with a point multiplier of 1, a daily limit of 10 likes that can earn points, and a maximum limit of 1,000,000 points.

At the end of each week, users need to exchange points for project tokens on the official website of the project. The tokens are ERC-20 standard tokens based on the Ethereum network, which can be traded and consumed both on and off the platform. The exchange rate of the tokens is dynamically adjusted based on the total points and total tokens each week. Users can also use the tokens to enjoy various services and benefits of the project. For example, tokens can be used for tipping or receiving tips, enhancing interaction and trust among users. Tokens can also be used to participate in some social activities of the project and to access discounts and offers provided by partners, or to invest or be invested in, increasing one's value and influence.

Innovation of the Project: Social Innovation from Web2 to Web3

The advantages and innovations of this project are mainly reflected in the following aspects:

• Utilize Web2 traffic entry points to achieve low-threshold user acquisition

The project does not have its own independent social platform, but rather relies directly on a certain Web2 social giant, utilizing its large user base and activity level to attract user participation. Users only need to bind their project accounts on a specific platform and add specific tags when posting content to easily participate in the project ecosystem. This not only reduces the user's cost of use and learning cost but also increases the user's willingness to participate and sense of trust.

• Achieve high-efficiency traffic monetization through token incentives combined with Web3

The project utilizes blockchain technology to provide users with a new type of social currency, allowing them to earn profits through their own content and influence, while enjoying more freedom and privacy. The tokens can not only serve as a medium of value for trading and consumption both within and outside the platform, but also act as proof of rights, enabling users to enjoy more services and benefits within the platform. The issuance and redemption of tokens are automatically executed through smart contracts, eliminating the need for any intermediaries or reviews, thus ensuring the rights and security of users.

• Seamless integration of Web2 and Web3, exploring innovation and breakthroughs in the social field

The project is a social project that combines Web2 and Web3, drawing on the traffic advantages and user habits of Web2 while introducing the technological advantages and value concepts of Web3. The project is not just a simple traffic monetization tool, but also a project dedicated to creating a decentralized social platform. The project plans to launch its own social application in the future, allowing users to enjoy more autonomy and profit rights in a completely decentralized social environment.

Risks and Challenges Faced by the Project

Although the project has certain advantages and innovations, it also faces some risks and challenges, mainly in the following aspects:

• Beware of bot interference

The distribution of project points and tokens is calculated based on user social activities on specific social platforms, which may lead to some malicious users exploiting bots or paid responders to manipulate points and tokens, thereby affecting the fairness and stability of the platform.

The project needs to take some measures to prevent and combat such behavior, such as setting certain restrictions and review mechanisms, detecting and banning suspicious accounts, and dynamically adjusting the exchange ratio of points and tokens.

• Market recognition is insufficient

As an emerging Web3 social project, it has not yet gained sufficient market recognition and user trust. The project needs to strengthen its brand building and promotion to enhance user awareness and participation. It also needs to maintain a good cooperative relationship with Web2 social platforms to avoid being seen as a competitor or threat, which could lead to restrictions or bans.

• Legal compliance must be emphasized

As a project based on blockchain technology, it involves aspects such as token issuance, trading, and consumption, and may touch upon the laws and regulations of different countries or regions.

The project needs to comply with relevant laws and regulations to avoid causing dissatisfaction or intervention from the government or regulatory agencies. The project also needs to provide users with necessary risk warnings and education, so that users understand their rights and obligations, as well as the risks and losses they may face.

• Platform sustainability needs improvement

This project relies on traffic from specific social media platforms; if those platforms experience outages or cease operations, or take adverse measures against the project, it will be severely impacted.

The project needs to quickly launch its own social application and establish its independent social platform to reduce dependence on specific platforms. The project also needs to continuously improve its token economic model to ensure the stability and appreciation of the token, attracting more users to hold and use the token.

A new star in the Web3 social domain, how far can it go?

With the continuous evolution of blockchain technology, the social models of Web3 are also being constantly explored. Recently popular "Friend.Tech" is actually "only for fans", where fans buy shares of KOLs, but in the end, KOLs make money while fans go home empty-handed. The project lacks a sustainable economic model, and fans cannot continuously support KOLs, leading to a gradual decline in the project's popularity.

This project, which is also based on social relationships and a new star in the SocialFi track, how far can it go? Although it is difficult to provide an answer regarding the future path of the project, there are indeed still some aspects worth looking forward to, and there are some good performances:

• The market size is considerable

According to data, a well-known social platform has a global monthly active user count of 206 million. If the project can attract 1% of those users to participate in its ecosystem, there will be over 2 million potential users. Moreover, with the development and popularization of Web3, the project may also expand to other social platforms such as Facebook, Instagram, TikTok, etc., further enlarging its market scale.

• User growth is rapid

According to the project's official data, as of September 18, 2023, the project's official account has over 170,000 followers, and this number continues to grow. The project's user growth mainly relies on its token airdrop to attract users' attention and interest, while also increasing user participation and loyalty through social activities and partnerships. The speed and quality of the project's user growth are commendable and promising.

• Token value has potential

According to data from the project's official website, as of September 18, 2023, the price of the project's token is $0.0025, with a total market capitalization of $2.5 million. The price and market value of the token are determined by its supply and demand relationship. With the growth of users and the development of the platform, the token is not only a social currency but also an investment product with high appreciation potential.

SocialFi is an important track in Web3. Although some projects have gained a certain level of recognition, there are currently no particularly standout projects. This project not only provides users with a new way to monetize traffic but also offers a new type of social experience. Whether it can go further in the future remains to be observed and anticipated.