How Blockchain Can Build Open and Decentralized Social Networks
Did you know that worldwide, 3.80 billion people used social media just in January 2020? Over 5.19 billion people use mobile phones globally, with user numbers increasing by hundreds of millions a year. And as we know, since Facebook scandals are happening almost yearly, all these Social Media networks gather our information to sell and use however they see fit.
In today’s article, we’re giving you an introduction to a blockchain network that wants to change this and create a decentralized social media network, in which you are in charge of your data.
What is the Desmos Network?
Desmos is a Proof-of-Stake blockchain built on the Cosmos SDK and based on the Tendermint Consensus Engine and specifically created for social networking apps and projects. It utilizes game theory and on-chain governance to decentralize social networks’ business model to prioritize users’ interests.
Desmos’ mission is to fix social media users’ problems and health by eliminating things such as censorship and privacy breaches. And as the Desmos Chain functions as a protocol on top of which many applications can be built. The responsibility for handling things such as hate messaging or criminal activity will be in the developers’ hands.
By redesigning the lifecycle of social media use and development, through an improved economic model to achieve network growth without the need for centralized intermediaries. Both the general user and the advertiser can reach a balance without the intermediaries taking the unfair advantage from the information asymmetry, permission-based entry barrier, and capital.
Desmos aims to provide the backbone on which decentralized social networks can be built, while the DSM asset (the native asset of Desmos) will be used for governance etc.
So, why, Desmos? According to the Network itself, there are five different reasons to be using the Desmos chain to build or use a social media app.
The first is the advertisements. On traditional social media apps such as Twitter or Facebook, over 140 million different businesses are trying to reach communities. All the money they spend now goes to the apps, but it must go back into the users’ pockets that make it possible to connect thanks to the distribution of their data.
The second reason is censorship. There are countries in which social media posts are automatically censored, depending on their content. However, decentralized networks do not allow this type of censorship, which means users have greater freedom of speech. Additionally, Desmos can be integrated into many blockchain projects, adding a community and sharing capability to it.
Furthermore, decentralized networks have the capability of improving the health of social media’s billions of users. The anonymity will open the way to the well-being of users around the world. And, cryptography will be the basis of decentralized social networks. Meaning, consumers will only share their data optionally, and in return for crypto. Desmos believes that by creating a financial incentive, the motivation to improve social media’s overall quality will be higher.
The Desmos Chain’s native digital asset is called the Desmos Token or DSM for short. The value of DSM reflects the network value on Desmos as network value is proportional to the square of the number of connected users of the network. Furthermore, in this network, the economic value can also be quantified by the advertising value. The advertising value is a function of attention spent on the network, which can be valued through parameters such as several views and cost per thousand impressions (“CPM”).
DSM stakers secure Desmos to earn transaction fees and inflation rewards. Transaction fees are affected by the transaction volume, which is attached to the advertising value. Inflation rewards are impacted by staking ratio and network effects.
The initial supply of DSM will be 100,000,000. The sale price of DSM tokens in the sales round 1A was $0.06 per 1 DSM, with a minimum purchase amount of 20,000 DSM and 1,500,000 DSM. The round 1A sales period closed on the 17th of August 2020.
- 33.33% of DSM purchased lock-up for 12 months starting at Mainnet launch.
- Remaining locked tokens will be released in equal portion (5.58%) for 12 months after that (i.e., the 13th to 24th month since Mainnet)
If you want to stake DSM, we got you covered! Learn how to stake DSM in this article.
If you’d like to learn more about Desmos, have a listen to The Stakin(g) Podcast, during which we sat down with the Desmos team to ask them all our burning questions.
DISCLAIMER: This is not financial advice. Staking and cryptocurrencies investment involves a high degree of risk, and there is always the possibility of loss, including the loss of all staked digital assets. Additionally, delegators are at risk of slashing in case of security or liveness faults on some PoS protocols. We advise you to DYOR before choosing a validator.