Social Media Based Capital Allocation
Loading...Leveraging torrents of attention social media provides
Social Graph
Funding non-visible things
What kind of onchain coordination would you be able to create if you had an onchain social graph and distribution to tens of thousands of active users?
In 2024, people worldwide spend an average of approximately 2 hours and 23 minutes per day on social media. The design space of web3 social media is exciting because there are lots of opportunities to leverage open social graphs and the attention that people spend on social media. What will we design now that we can program our values into social media?
Software developers who want distribution into active social media communities or need a social graph can leverage web3 social networks to build their killer onchain coordination networks.
Farcaster Frames are interactive elements embedded within Farcaster posts, allowing users to create and engage with dynamic content such as polls, live feeds, and interactive galleries. As of mid 2024, there are over 100 applications built using Farcaster Frames.
In the summer of 2023, we built microtips with Quadratic Funding matching directly into Lenster. The pilot round which allowed for QF tips on top of posts about #ethcc received 581 contributions from 181 unique contributors and allocated $14.9k (18.9k wMATIC).
During GG18, IDriss released a browser extension that allowed users to contribute to Gitcoin Grants directly on Twitter.
By replacing likes with microtips (augmented by Quadratic Funding matches), creators are now earning a living based on the public goods they create.
Rounds.wtf is an experiment in doing capital allocation in Farcaster channels. Using rounds.wtf, channel participants can stimulate activity in their channel by providing tokenized incentives. And participants can tip creators of posts.
This graph helps social media platforms and other online services understand user behavior, suggest connections, and provide personalized content. Essentially, it visualizes how users are linked to each other, enabling better insights into social dynamics and network structures.
Using Social Graphs, anyone can build advanced capital allocation networks that significantly enhance funding processes and investment efficiency. One possible example is a decentralized venture network that leverages social graphs to map relationships between entrepreneurs, startups, and investors. This network could facilitate precise matchmaking, ensuring that capital is directed to startups with the highest potential based on trust and previous successes within the network. It would streamline the investment process by enabling investors to identify promising ventures through trusted connections and shared interests.
Another innovative application is peer-to-peer lending platforms that utilize social graphs to create trust-based lending networks. These platforms would allow individuals to lend money to peers within their social network or extended community, reducing default risks and fostering a sense of community-based financial support. Additionally, social graphs can enhance crowdfunding efforts by identifying potential backers within a project’s social network, increasing engagement and funding success rates.
In summary, these networks leverage the power of social connections and trust to optimize capital distribution, improve funding outcomes, and promote collaborative financial ecosystems.