Influence is already one of the fastest growing asset classes of the '20s, but its market is still highly inefficient. Influence is massively illiquid and mispriced, hurting its impact and growth potential. Yup solves these inefficiencies by rewarding according to social consensus; influential users provide their likes and ratings while staking their reputation, in return they get their fair share of distributed tokens and influence. “Influence Mining,” as we refer to it here, will massively expand the online influence market and provide P2P pricing that outperforms traditional curation/moderation systems. The YUP token and its influencer assets will play a significant role in providing diversity and access to decentralized finance long-term.
Start influence mining early by linking your Twitter account to a Yup identity in seconds.
With influence, we guide people’s decisions and shape their opinions – where they shop, what they read, who they vote for. Influencer marketing alone is a multi-billion dollar industry as companies scramble to align these influencers with their products. Onboarding the right influencers can be the difference between success and the long path towards irrelevancy. User reviews and content moderation count as influencer markets as well, since they determine the social value of content, products, and individuals. Over 80% of Americans check reviews prior to purchase and online platforms spend over $3 billion a year on content moderation alone.
Despite the growth of this asset class, there are two main inefficiencies surrounding influence today:
1. Influence is mispriced
How much does your like cost? How about a follow? What’s at stake when you give it? How valuable is your influence? Rest assured that your likes certainly have value, but pricing them is harder than it seems. Most social metrics indicating influence (followers, likes, views, ratings, etc.) are hard to trust and even harder to value. 78% of marketers highlight measuring the ROI of influencer campaigns as their most difficult challenge, despite continuously spending more on influencer campaigns. This extends beyond marketing to misinformation; The Twitter community called upon the platform to expedite the ‘verified’ process for hundreds of medical experts and epidemiologists.
2. Influence is illiquid
Small time influencers and curators can't monetize their online actions directly. If you have 1,000 TikTok followers, it’s probably not worth the time it takes to find opportunities for advertising. And if you’re a great curator but not a creator, good luck getting paid for the important work you do to surface quality content on sites across the web. This leaves most internet users outside of the influence economy and ensures they are underpaid for their actions.
Yup attempts to solve these issues by rewarding users who participate in ‘social consensus': using the crowd to determine all things' relative social value. Yup tracks users’ online engagement across the entire web and supports their actions with their influence score. The protocol will link to social OAuth identities online. As more users engage across the web, sharing their opinions, rating things, and generally signaling their engagement, they're rewarded with YUP tokens and increased influence. The better your engagement is received by the rest of the online community, the more they earn. The worse it is, the more influence they lose. The Yup Protocol has a set of systems that ensure that influence is scarce and distributed equally throughout the internet, that collusion and bribery are unprofitable, and that individuals have control over their actions and data.
Online influence is the sum of signaled engagement plus confirmation through social consensus. We signal our engagement with likes, followers, upvotes, reads, and views. As influence is wielded – through recommendations, shares, opinions, and reviews – social consensus confirms the validity and quality.
The idea behind blockchain mining systems is that participants earn rewards for providing value while staking something costly. Proof of Work (PoW) protects the bitcoin network by requiring that participants burn computational work for the sake of the security of the network. In return for this work, users are rewarded with BTC.
DeFi protocols may find a variety of use cases for robust reputation systems – influence curated registries, influencer tokens, verified pseudonymous identities, and insurance, for example. Using social consensus to decide which tokens get listed on AMMs and lending protocols makes sense. Additionally, once income is generated from influence at scale, it sets up the fundamentals for investing in influencer tokens that give a user the right to a portion of the influencer's rewards. These influencer tokens can and will be fractionalized, traded, lent, pooled, and maybe even farmed.
What’s more exciting is the massive market potential that a combination of social consensus and DeFi could have. Just as early bitcoin miners earned BTC from mining with their laptops without ever needing a fiat gateway, so too will the users of social consensus protocols be able to earn on their participation with no money up front. With Yup, this opportunity grows as the network expands rather than sinks. This provides broad financial inclusion to those who previously had no capital or means to invest. It also allows for a layer of much needed privacy and censorship resistance to users' influence The average volume per address on Uniswap was at ~$150,000 this last week with $50 gas fees. At this rate, we may get to a situation that participating in DeFi is just as expensive and exclusive to join as traditional markets and venture investing. We've done a good job of unbanking the rich, but a poor job of banking the unbanked.
The internet deserves a trustless sentiment layer and web3 is well-positioned to offer it. Social capital is most valuable when it is distinct from financial capital, but will grow in size and liquidity through DeFi infrastructure. We think Yup will capture this opportunity with a social consensus protocol that rewards users directly and a token economy primed for financial inclusion and web-wide distribution.
Get started today by linking your Twitter account to a Yup identity. It takes 10 seconds.
If you want to learn more about what we're doing, feel free to reach out to me personally at firstname.lastname@example.org .