Social Finance (SocialFi) is a mix between the nuances of social media and Web3 innovations like decentralized finance (DeFi). For context, it involves creating and managing social media outlets while generating content to monetize (finance).

Noteworthy is that monetization incorporates cryptocurrencies and other virtual assets. Also, identity verification and content ownership rights mostly involve Non-Fungible Tokens (NFTs)

Since SocialFi follows DeFi principles, it remains autonomous from central authorities, giving the content creators freedom of creativity. In contrast, central organizations monetize conventional social media platforms and can restrict content creators at times.

Another notable downfall of conventional social media is high rates of content piracy (as opposed to NFTs anchored to SocialFi). So, SocialFi seeks to revolutionize traditional social media while ensuring increased income for content creators.

In this piece, we will explore how SocialFi outlets like Diamond can improve creator monetization. So let’s dive in.

SocialFi Enhances Tokenized Economies

SocialFi introduces a striking concept alien to traditional social media: Social tokens/ utility tokens. For context, social tokens enhance on-platform economics and content creators now produce them.

Every content creator can have a token anchored to his/her brand. Market awareness of the brand and user engagement determine the worth of the token. Notably, this monetization model (monetizing user engagement) is a key feature of SocialFi, ensuring great returns for content creators and influencers.

There’s No Censorship

Unlike what is obtainable on traditional social media platforms, SocialFi grants content creators the freedom to generate content. One might now wonder if malicious creators could utilize this lack of censorship to create harmful content.

In essence, all content on the blockchain is organised by labels. Based on a user’s queries and input, the engines retrieve searched content based on their contained labels. So it’s up to a user what kind of content he wants to view on SocialFi platforms.

With this opportunity, creators can generate exclusive content to be viewed by their followers and increase their brand awareness. Thus, this boosts content monetization on SocialFi platforms following the user engagement monetization model.

SocialFi will Improve Creator Monetization by Driving Digital Identities and Ownership Rights

NFTs back this key aspect of SocialFi. These tokens are designed to show proof of ownership. Notedly, creators usually use their NFTs as avatars on their profiles and validate ownership by connecting their wallets.

Meanwhile, there are exclusive events or communities on SocialFi platforms that require a unique pass to gain access to. Notably, this access is granted to NFT holders.

Such verifiable authenticity improves creator monetization on SocialFi platforms unlike on conventional social media platforms rife with content piracy. Sales and resales of NFTs could generate massive income for content creators, depending on the popularity of their brands.

All these make for community building through direct fan connections, co-creation and collaboration, incentive-based monetization models, etc.

In Conclusion

SocialFi is set to transform the way content creators monetize their work. By combining blockchain technology, social tokens and NFTs, SocialFi platforms improve content monetization.

In addition, creators enjoy greater control over their content and sustain diversified revenue streams. As a result, SocialFi offers creators more sustainable and lucrative opportunities compared to traditional social media platforms.