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Information Finance (InfoFi) is emerging as a significant tool in the web3 sector, helping blockchain-based projects build, grow, and retain their communities through advanced user analytics and incentivization programs. This is achieved by allowing users to monetize their interactions with a project, with social media posts becoming particularly valuable assets. Engaged community members can now see their tweets or Instagram posts about a crypto project trigger an inflow of new users, which is being recognized and rewarded.
While projects have long been aware of the power of influential users, they have struggled to identify those who truly bring value. Industry influencers with high follower numbers have traditionally earned tokens and other rewards for promoting a project, but there was little information on how these promotions converted into new business. The new generation of community rewards platforms offers crypto projects analytical tools that allow them to examine how a user’s social media interactions impact their businesses, quantifying the true value of every tweet and post.
This shift is a game-changer for both projects and users. Projects can now understand the power of particular social media posts, which have become highly sought-after commodities. Social media is deeply embedded in the investment landscape, with a significant portion of institutional and retail investors using social media for research and decision-making. InfoFi is opening up a new revenue stream for a new generation of investors, giving financial power to knowledgeable and engaged social media users who drive collective investment decisions.
On the project side, InfoFi’s ability to gauge the effectiveness of social media posts allows for targeted reward strategies. While mass-user rewards initiatives like airdrops are effective for quick community growth, the analytics afforded by InfoFi platforms help projects allocate further reward initiatives more strategically. This targeted approach fosters meaningful, long-term engagement with users, driving predictable user acquisition and more informed company growth plans.
Beyond social media, some InfoFi projects are measuring on-chain metrics, such as how a user’s activity relates to total value locked, transaction volumes, and fees spent. This level of user insight allows projects to tailor demographically driven growth strategies in ways that were not possible before. Social media posts are powerful for building a community, but on-chain metrics provide a deeper understanding of where the money is going and how much is coming in from different types of engagement.
In this new internet-first world, social media posts have become a new kind of currency, especially in web3. With the tools afforded by the InfoFi sector, a new wave of active users is earning on their tweets and posts. Users who have followed and engaged with a project from the start now have a fair shot at turning their social capital into financial capital, while projects can maximize the reach and efficiency of every dollar spent on incentivizing these users. Loyalty, influence, activity, and insights are the actions that InfoFi is designed to measure and monetize, offering a more nuanced approach to community engagement and growth.

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