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Why Social Media Needs a Web3 Makeover

From Algorithms to Ownership, SocialFi Offers a Different Path

Author

Scott Kasten
May 15, 2025

It is increasingly well known–we are the free parts used to build big tech’s profit producing machine. We post, we share, we build audiences—and in return, we get… a little dopamine and a lot of ads. Our data gets mined. Our content gets buried by ever-changing algorithms. And when a platform pivots, glitches, or dies, so does everything we built on it.

It doesn’t have to be this way.

SocialFi is still rough around the edges, but it offers a bold and necessary rethinking of what social media can be. One where users own their profiles. One where creators get paid first, not last. One where communities can actually shape the platforms they use. And one where social clout isn’t just for show—it’s a real economic asset.

At its best, SocialFi is a protest against the extractive nature of Web2—and an experiment in digital equity. That might sound grandiose, but it’s already playing out. On platforms like Lens or Farcaster, creators are earning from their first posts. Communities are voting on rules instead of just complaining about them. And developers are building modular, composable social apps that don’t trap users in someone else’s sandbox.

Of course, it’s not perfect. Financializing everything risks turning social media into a marketplace of attention, where authenticity is drowned out by token incentives. And not everyone wants to carry the burden of “owning” their identity or managing a wallet. We have to be honest about that.

But here’s the thing: Web2 isn’t going to fix itself. It’s too entrenched, too centralized, too incentivized to keep things just the way they are. If we want a better model, we have to build it. And that’s what makes SocialFi exciting—not because it’s a finished product, but because it’s an open invitation.

An invitation to rethink what it means to connect.
An invitation to own the value we create.
An invitation to build networks where users are stakeholders, not just data points.

So no, SocialFi won’t replace Twitter tomorrow. But it just might help us rediscover the joy of being online—and give us a reason to believe we can do better.

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