As more and more developers enter the circle, Web3 is now flooded with various projects. According to incomplete statistics, 1 million new projects were added in 24 years, which is 2.5 times the bull market in 21 years.

The common problem of these newly added projects is "low circulation and high market value". These 1 million projects will release a little bit of sales to the market every day, causing the market to bear nearly US$300 million in selling pressure every day.

With a limited user base, millions of new projects are eating into the originally fragile liquidity, which is an important reason for the insufficient liquidity of funds in this bull market, the failure of altcoins to rise, and the bull market users losing money instead of making money.

https://x.com/jconorgrogan/status/1790385292446400623

Web3 Every project is telling users a beautiful story, which will eventually serve transactions. Transactions are like fast-moving consumer goods, where traffic is everything. Without traffic, the flywheel cannot turn; without users, traffic cannot work; without enough users, how can you L2; without enough users, how can you LST; without enough users, how can you ensure the security of the blockchain...

Therefore, most of the demands in the cryptocurrency circle are pseudo-demands compared to the industry’s demands for users. Only after the user-level narrative is resolved can other narratives be told.

Web2 has already formed a trillion-level market in the "people, goods and market". How to convert Web2 users into Web3 users and form Web3's own "people, goods and market" has always been an industry problem. The consensus reached by industry developers is that building Web3's "people, goods and market" through SocialFi is the most convenient and stable way.

So today we will introduce all aspects of SocialFi.

1. There is no end to Web3 social networking, will its debut be its peak?

The market unanimously believes that SocialFi can produce several unicorns, and has done very professional theoretical reasoning, and has also matched SocialFi with impeccable market and technology. Developers have developed hundreds of solutions on the chain:

However, "reality" seems to have always been contrary to "theory", resulting in the inability to combine "theory" with "reality". This has caused SocialFi, which has its own traffic, to give people the feeling that it reached its peak as soon as it debuted.

Here we pick out some key projects to analyze and see if they peaked right after debut, such as Lens Protocol, CyberConnect, Farcaster, Debox, and friend.tech.

1. First Generation SocialFi

Lens Protocol is regarded as the first generation of SocialFi. It was founded by Aave in 22 years and is an on-chain social basic data layer with a very grand product narrative. 200 Dapps have been built on it, with a total of 1,482,795 ecological users and about 1,000 daily active users.

https://dune.com/queries/1534604/2573852

Based on the Lens protocol, several interesting Dapps such as Lenster and Phaver were born:

  • Lenster, the decentralized version of X

  • Phaver’s model is “likes are rewards”

Because Lens Protocol did not integrate assets well during product design, users were unable to generate strong profit expectations in the protocol before the SocialFi scenario was proven, and the poor attributes of "Fi" led to user loss.

The first generation of SocialFi's platform-to-user model also includes CyberConnect, Farcaster, Nostr, Mast Network...

The Web3 market pursues "faster, cheaper, and newer". Although many other SocialFis came out after Lens Protocal, there was nothing disruptive until Friend.tech appeared.

2. Second Generation SocialFi

Friend.tech is considered to be the second generation of SocialFi. It is not a protocol. It chooses a one-to-many network-like social form in terms of scenario.

He overemphasized the attribute of "Fi" in the "goods" of "people, goods and place", and realized the value of KOL's influence. The more reputable the KOL is, the more users will buy his shares, the higher his value will be, the higher the purchase price will be, and the selling price will also be higher.

Although it is novel enough, it has a large bubble, a closed system, and insufficient externalities, which leads to a rapid loss of users (100 daily active users) after the wealth effect weakens.

Although friend.tech has been on a downward trend since its peak, its innovative attempts in fan economy and value feedback to users have also inspired many practitioners and project parties.

The second generation of SocialFi that has gone further is DeBox, which is also a "one-to-many" model. The core problem that DeBox solves is "holding chat". The group chat function of Debox can be set to allow members who have a certain amount of NFTs or tokens to enter the community, and use holdings as a consensus to gather community members with the same views and ideas, so as to better form a spontaneous community governance mechanism and reduce information noise. Since content storage and logic are all off-chain, the user experience is better, which is similar to the user experience of Web2 social products.

summary

From the first and second generation SocialFi solutions, we can see that many solutions on the market are copying the Web2 model, so the common web3 social products have always been the following categories:

  • Underlying infrastructure: such as Lens Protocol, CyberConnect, Farcaster, Nostr, Mast Network...

  • Task platform: such as Galxe, Zealy, Layer3, etc.

  • X to Earn: such as CARV, SwapChat,

  • Creator Economy: such as Friend.tech, Bodhi

  • Web3ization of web2 social applications: such as Satellite IM, Debox, etc.

It can be seen that the first and second generations of SocialFi are either platform models or one-to-many community models. The integration of the "platform to user" and "one-to-many" models to form a powerful "people-goods-place" solution has not yet appeared.

It was not until UXLINK exceeded 10 million users that we slowly discovered that the third generation of SocialFi had begun to take shape.

2. The third generation of SocialFi - UXLink

UXLink is considered to be the third generation of SocialFi. UXLink targeted the niche scenario of social networking among acquaintances at the beginning of its design, and designed a dual-token model on the asset side.

The design of the product architecture is more complex, divided into the basic application layer, protocol service layer and infrastructure layer, which support and complement each other, and leave sufficient interfaces for the access of external protocols.

In the social networking scenario among acquaintances, UXLink has realized a social ecosystem that includes traffic entry, social asset transactions, and infrastructure. Let us disassemble UXLink's product framework from top to bottom.

Translated into human language, UXLink takes the strengths of the previous SocialFi project and combines it with its own understanding of SocialFi to design its own public chain and community model. The UXLink community does not need to be built on its own application. Just like Toncoin, it is compatible with Telegram and can seamlessly convert web2 users on Telegram into web3 users through invitation rewards, thus solving the "people, goods and places" business closed loop.

UXLink’s own positioning is to build a social relationship map of acquaintances through Link To Earn and provide data services to third parties. In other words, UXLink is not just a social Dapp, but an L1 social protocol solution.

Its structure is divided into 3 layers. To help readers understand it better, I will try to use as few technical terms as possible:

  • The first layer, the basic application layer - solves the problem of where the “people” in “people, goods and places” come from?

This is the UXLink basic application layer, which provides "to C" services and is the layer that users often come into contact with. Interaction benefits all occur at this layer. Compatible with Telegram group scenarios, through the invitation reward model in "acquaintance social networking", Web2 users are seamlessly converted to Web3 users.

Toncoin quickly gained popularity by leveraging Telegram's 800 million user base. UXLink's technical solutions are compatible with Telegram, so both third-party developers and users can seamlessly enter Web3, effectively solving the problem of where "people" come from.

Here’s where UXLink has achieved significant results:

🔸10 million+ registered users
🔸5 million+ holders
🔸1.6 million+ NFT holders

We can imagine that with so many real users, developers will try to find ways to enter the market.

  • The second layer, the protocol layer - solves the problem of where the “goods” come from in the “people, goods and place” problem?

Users converted through social rewards at the application layer must have a place to carry them, and there must be "goods". If there are no goods, the converted users will quickly leave.

Therefore, this layer is mainly a protocol layer for developers. It provides data and EVM+IPFS+Cloud on-chain and off-chain hybrid scalable technical architecture through API, allowing developers to use social relationships to generate high-quality growth and personalized user services, such as AI algorithms, recommendations, group building, etc., just like developing mini-programs in WeChat social relationships and developing Facebook Market Place in FACEBOOK, to form a complete ecosystem.

Users interact with different objects in the UXLink ecosystem, which can be called "interaction" or "contribution". Users continue to contribute their social relationships, their attention, their trust, and their data. The core scenario of UXLink is to financialize contributions, so that users become the actual beneficiaries of their contribution behavior, rather than the platform itself.

Currently, more than 100 projects have been released on UXLink. Users can participate in these 100 projects through their UXLink identity, effectively solving the supply of "goods" in the "people, goods and places".

  • The third layer, infrastructure layer - solving the construction of the "field" in the "people, goods and field"

This is a hybrid scalable architecture (EVM + IPFS + Clouds), a lower-level infrastructure that allows social relationships and data to be capitalized and circulated. Through a multi-chain approach, users can transfer their social assets in various public chains and applications.

From the above “people, goods, and venues” closed loop, we can see that UXLink is a super linker that plays the role of a Hub in the blockchain.

  • The first closed loop is a small closed loop, namely user - product - developer (in a narrow sense, "people, goods and places"). Through the technology stack provided by the first and second layers of UXLink - a full set of tools (such as UX Growth) and its transformation of TG native scenarios (such as Social DEX), an effective link between users, products and developers is achieved, which can meet the real needs of users and developers and gradually form a complete set of user product groups.

  • The second closed loop is the big closed loop, which is infrastructure-traffic-application (broadly speaking, "people, goods and places"). UXLink solves the blockchain trust problem through three levels: Layer — Protocol — Dapp, and realizes the big closed loop through brand traffic.

Today, when Web3 is not taking over each other and users do not trust the project parties, the industry needs a connector between users and projects, a "people-goods-place" with tens of millions of real users to ignite the market.

Recently, UXLink released the "Token Airdrop Rules and Further Solicit Community Opinions", which is to check the witch announcement, which means that the project will issue airdrops in the near future.

https://wublock123.com/index.php?m=content&c=index&a=show&catid=42&id=28444

Before the airdrop, let’s estimate the value of the token.

1. Token Economic Model

UXLink adopts a dual-token model, consisting of utility token $UXUY and governance token $UXLINK.

1. Utility token $UXUY: mainly used to incentivize $UXUY community growth and interaction.

  • How to earn: Users can earn $UXUY by inviting friends and contributing to the ecosystem. As UXLINK's user base grows, the rate at which users earn $UXUY will decrease exponentially. Once the network reaches 30 million, no new UXUY tokens will be generated. By then, the value formed by the network effect can support the continued expansion of users and nodes. UXLINK calls this mechanism PoL (Proof of Link).

  • Destruction mechanism: $UXUY can be used to pay service fees (interaction fees within the ecosystem, UXLINK can also help users pay Commission with $UXUY). Of these fees, 3% - 15% will be destroyed, and the specific value depends on the governance decision of the UXLINK community.

2. Governance token $UXLINK: mainly used for governance and capturing the value generated by UXLINK products.

  • Supply: $UXLINK has a fixed supply of 1 billion.

  • Release: $UXLINK will be released after listing.

  • Community: Airdrop to active, high-quality users, no lock-up period

  • Investors: 6-month lock-up period + 12.5% ​​release per quarter within 8 quarters

  • Team: 6-month lock-up period + 12.5% ​​release per quarter within 8 quarters

(II) About Airdrop

65% of the tokens are allocated to the community, and the top 10% of community users will receive airdrops. According to the data of 1.6 million NFT holders, each user can mint 5. Considering that there are still many that have not been minted, the first batch will have approximately 50 million UXLINK tokens airdropped, and 1 million people are expected to participate in the distribution.

Token Value Estimation

The total number of UXLINK tokens is 1 billion. According to the release chart, about 5%-10% will be in initial circulation. The project that has already listed on the same track is CyberConnect. Coincidentally, both UXLINK and CyberConnect have received $15 million in financing. Although the valuation models are different, they still have a certain reference value.

Referring to CYBER, FDV is 547 million and MC is 127 million.

Assuming UXLINK, FDV is 200 million, then the price of UXLINK is around 0.2u;

The market has high expectations for UXLINK, and FDV may rise. If it reaches 350 million, the price of UXLINK will be around 0.35u;

If your tokens are obtained through airdrops, you can make a decision based on the market sentiment and buy and sell orders after the launch. If there are a lot of buy orders, you can hold them for a while and sell them when the price reaches a new high.