Research Summary
The report discusses the game theory behind Friend.Tech, a decentralized social media app that tokenizes crypto personalities. The platform allows users to buy and sell “keys” of people, with the key price fluctuating according to supply and demand. The report also explores the concept of “3,3” from Olympus DAO, which encourages staking as the most beneficial strategy, and how it applies to Friend.Tech.
Key Takeaways
Friend.Tech’s Unique Mechanism
- Tokenizing Crypto Personalities: Friend.Tech allows users to buy and sell “keys” of people, which grants access to a private chat with that person. The key price fluctuates based on supply and demand.
- Creators’ Earnings: Creators earn a share of the buy/sell tax on every transaction of their keys. The cheaper a key is, the easier it is to earn money from it.
- Price Calculation: The price of keys is based on supply and demand, with a spreadsheet available to calculate it. The bonding curve gets steeper the more keys a person has outstanding.
Application of “3,3” Strategy
- Staking Strategy: The “3,3” strategy from Olympus DAO, which encourages staking as the most beneficial strategy, is applied to Friend.Tech. This strategy increases the value of keys by causing positive buy pressure and increasing scarcity.
- Portfolio Value Increase: By buying each other’s keys, users can increase their portfolio value and earn fees. Repeating this process can significantly increase the value of a user’s key.
- Leaderboard Climbing: The goal of “3,3”-ing is to climb up the leaderboard and signal to other accounts that the user is a holder and won’t sell their keys. This can attract more holders and networking opportunities.
Potential Risks and Drawbacks
- Exit Race: The report suggests that eventually, the system will become a race of getting out of the exit gate first. This could lead to mass selling and significant losses for those who are not quick to sell.
- Unsustainable System: The author doubts that the creators of Friend.Tech will be able to launch a system to make the current model sustainable.
- Alpha Channels: The report questions the value of alpha channels on Friend.Tech, suggesting that they may not provide any unique benefits that users can’t get on other platforms.
Actionable Insights
- Consider the Risks: Users should be aware of the potential risks associated with Friend.Tech, including the possibility of mass selling and the unsustainability of the current system.
- Evaluate the Value of Alpha Channels: Users should critically evaluate the value of alpha channels on Friend.Tech and consider whether they provide any unique benefits.
- Understand the “3,3” Strategy: Users should understand the “3,3” strategy and how it applies to Friend.Tech. This strategy can increase the value of keys but also carries risks.
