Sway Social Protocol

Sway Social Protocol

Sway is a creator-owned, decentralized social media protocol that uses NFTs to translate social capital into an asset class.

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sway - /sweɪ/ - control or influence (a person or course of action)

Concept

In a traditional Web 2 social media platforms, the number of ‘Followers’ per content creator is directly correlated to their earnings power and creates a feedback loop compounding the value.

This clear economic benefit, or asset pool, is not recognised in tangible form. More and more, social media users and communities are conscious of this misalignment and consequently growth will be constrained.

Sway deals with this disparity by allowing followers to share directly in revenue generation by content creators in addition to enjoying the non-tangible benefits of providing social support.

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This ‘Shareconomy’ model resets the economic principles of social media and removes the friction point that is threatening its growth.

Token

Sway Social Protocol is powered by native token SWAY which is staked to replicate following:

  1. Content creators establish individual pools for their NFTs.
  2. Users stake SWAY tokens to the pools (content creators) they wish to support.
  3. Staked SWAY tokens share in the revenue generated from their specific pools.

Social Capital

With SWAY, social capital is translated into an asset class.

We can draw on parallels to credit markets where the existence of third-party guarantors or credit underwriters reduce the overall cost of capital and enhance the earnings power for primary debt issuers.

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By analogy, the SWAY token holders are providing a Social Underwriting facility for content creators.

Social Capital model enables a commercial relationship to exist between content creators and their underwriters.

Staking

The value creation for content creators and SWAY stakers is interdependent since staking drives value and value drives staking. We envisage the most successful content creators will forge symbiotic relationships with their staking pools to marry the two parties’ fair returns on assets.

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The staking of SWAY as the primary economic indicator allows the system to dynamically calibrate to maximise capital returns.

This creates a unit of account that fairly reflects the economic health of the platform in its fundamental value through cost of capital arbitrage.

In other words, the SWAY token, represented as a simple monetisation of ‘Following’ or ‘Likes’ from the traditional social media experience, can now act as a global currency for social media evolution in Web 3, through the creation and recognition of Social Capital as an asset class.

Adoption mining

The initial issuance of SWAY is 100 million with a further 100 million to be distributed as incentives for platform adoption.

The issuance of new tokens, up until the 200 million cap, relies solely on content creators joining the platform and creating pools i.e., expansion of the economic system.

Adoption tokens are allocated to both existing content creators and SWAY staked. The split between the two cohorts depends on the total proportion of SWAY staked.

Lower staking skews the rewards to content creators whilst higher staking skews the rewards to SWAY staked (by pool weight and queue position). This originates from the assumption that staking is positively correlated to the economic health of content creation.

Clout.art

Clout.art is the first utility of SWAY and is due to launch the token and protocol by end of Q3 2021.

With Clout.art, existing social media posts from Instagram, TikTok or Twitter can be translated into NFTs and sold or monetised. Before the NFT is created, the original post must be deleted which establishes a true value transfer from the old world to the new.

Every creator must establish a creator pool in order to participate in the economic model and mint NFTs.

Authors