The Future of Social Capital: DeFi's Pioneering Experiment with @friendtech

The idea of tokenizing social capital in DeFi seemed distant until @friendtech made it a reality on @coinbase's new L2 platform, "Base".

What is @friendtech?

It's an on-chain social networking platform. Here, Twitter influencers can tokenize themselves, creating 'shares' that can be traded. Many renowned crypto influencers are already on board.

Benefits of Buying Shares

When you buy these shares, you're not just holding a digital asset. You get private chat access with the influencer. This opens doors for:

1. New projects that can directly connect with established personalities for traction.

2. Influencers now have a fresh avenue to monetize their social capital.

How Shares Are Priced

The shares use a quadratic bonding curve for pricing. The formula is:

Price in ETH = supply^2 / 16000

Simply, as more people buy or sell, the price for the next share goes up or down.

Fee Structure

Friend Tech charges a 10% transaction fee. Of this, 5% goes to the share owner and the other 5% to the Friends Treasury. Since its inception, the treasury has amassed 200 ETH.

Platform Stats

Here's a snapshot:

- Cumulative Transactions: 277k

- Cumulative Volume: 5700 ETH

- Users: 30k

- Total Fees: 400 ETH, split evenly between creators and the treasury.

Concerns to Note

The platform's value is currently hinged on the demand and supply for shares. The main draw now is access to private chat rooms. For sustained interest, they must continually add more value to these shares.

How Sustainable is the Model?

The pricing model is reflexive, implying prices will continue surging only with a steady influx of new share buyers. It remains to be seen how long the buzz can sustain.

Is this the Future of On-Chain Social Networks?

@friendtech's model is innovative. It compensates creators for their contributions to crypto. It might be hinting at the future direction for on-chain social networks.

Want to Dive Deeper?

- For a detailed look, check out the article by @asxn_r: https://asxn.xyz/p/friendtech?utm_source=%2Finbox&utm_medium=reader2

- For analytics, see the Dune Dashboard by @CryptoKoryo: https://dune.com/cryptokoryo/friendtech

In conclusion, whether a sign of things to come or just an experiment, @friendtech is definitely making waves in the crypto world.