# （Social Finance）SocialFi

SocialFi is defined as social finance. As the name suggests, SocialFi is a combination of Social and Finance, which allows users to financialize their "social influence" and earn revenue by creating content, participating in communities, NFT casting, communicating with other users, watching videos...etc. But unlike Web 2 social networks like FB, Youtube, etc., SocialFi can provide more privacy and security for users' personal data, and even expects to provide a better user experience by distributing advertising revenue more fairly. Unlike Web 2 social networks such as FB and Youtube, SocialFi provides better privacy and security for users' personal data, and even expects to distribute advertising revenue more fairly and provide a better user experience.

Web 2 social network platforms such as Facebook, Youtube, Instagram, etc. have a large number of users and a huge influence in the world, but these platforms have more or less the following structural problems and are criticized, so the concept of SocialFi was born.

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1.Excessive vetting power and opaque standards

Platform administrators have the authority to delete creators' content and even block accounts at will, but their auditing standards are often not transparent enough, and complaints from users are often heard.

2.Dictatorship of algorithm and leakage of information security

Another pain point that seriously undermines user experience is the platform's algorithm. Perhaps in order to gain higher traffic or advertising revenue, the platforms use algorithms to prioritize advertising content and exclude what they see as sensitive content, becoming a kind of dictatorship in disguise. In addition, users' personal information is also often suspected of being tracked or leaked.

3\. Creators are not reasonably paid

We know that the global digital advertising market continues to grow, but many content creators are receiving declining advertising revenue through the platform, or there is no fair mechanism. As a result, the real source of profit for quality creators is mostly distributed by vendors.

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Through blockchain-based technologies such as DAO governance and smart contract transparency, the management and voice of social platforms can be returned to users, ending the hegemony of algorithms, tokenizing the influence of creators, and providing a more equitable revenue distribution model.

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