Recent efforts in decentralized social networks aim to create flexible systems that prioritize users over commodification. These networks empower creators, communities, and fans with unprecedented control over their social influence, avoiding reliance on platform providers.

A prominent example is Farcaster, a leading decentralized social platform. Farcaster’s approach rejects the idea of using blockchain for all data, focusing instead on a minimalistic base layer as a pure social graph. Its on-chain component acts merely as a registry, while decentralized Hubs handle storage off-chain. This structure is regarded by creators and contributors as adequately decentralized.

The decentralized base layer social graph allows developers to innovate, but it introduces subjective opinions and platform alignment challenges. While decentralization is necessary, it also creates fragmentation, complicating the desired network effect. We believe that developers need a unified, easy-to-use plugin solution.

Airstack, one of Polymorphic Capital's portfolio companies, is the easiest way to build composable on-chain applications on Farcaster, a crypto-based social network designed for the next generation of social interactions. In June, Airstack experienced significant growth, with 13.6B compute units consumed, fueled by increased usage of mini-apps called Farcaster Frames, Not A Token points earnings, and Airstack's developer APIs within the Farcaster ecosystem.

At the end of July, Airstack launched a new protocol, Moxie – the unified solution.

Airstack’s Moxie is a community-owned and governed protocol that introduces economic incentives at the protocol level on Farcaster. With Moxie, users can engage in activities like games, minting NFTs, and other on-chain actions directly within their Farcaster feed using Frames.

Within the first 23 hours, 20,000 Farcaster members minted their personalized soulbound NFT, Moxie Pass, and the number soared to 30,000 within the next 3 days, as per Jason Goldberg, Airstack and Moxie founder. Also, Moxie-related casts have ranked among the top 10 Frames on Airstack, competing with dozens of others, even though the protocol has not yet officially launched.

Together, Airstack simplifies the development process, Farcaster provides the social platform, and Moxie creates economic engagement, making the ecosystem robust and interactive.

Grasping Moxie's Purpose: What It Does and Who Needs

In the new internet, everyone's time and attention should count for something valuable. Moxie helps you make the most of your time by weaving smart economies throughout Farcaster.

Monetizing Followers

With Moxie, anyone can turn their followers into paying fans. It turns the tables for influencers and creators, letting them earn from their fanbase and build stronger connections with their community. Fans also benefit from this by getting exclusive access to special or latest content, offers, and experiences, creating a deeper and more rewarding engagement for everyone involved.

Farcaster members can buy and sell Fan Tokens directly through Moxie smart contracts. These tokens (member, channel, and network) unlock special features and benefits throughout Farcaster.

As an example, you can have dedicated frames and channels accessible only to paid fans to create a more exclusive and engaging experience. Private groups can be formed where discussions and content are reserved solely for these supporters. Brands can offer special promotions and rewards exclusively to their fan base to foster stronger connections and loyalty. Artists can release exclusive content to people who love their work, with incentives for those who help spread their content virally. Additionally, fans can participate in voting on community initiatives, further empowering their role within the platform.

Looking ahead, the concept of Fan Tokens could expand to encompass an even wider range of exciting possibilities and user interaction and community dynamics within Farcaster. These tokens are exclusively available for purchase by Farcaster members through Moxie contracts and are meant to remain within the platform's ecosystem.

Moxie Fan Tokens are designed to prioritize usage over trading. Only Farcaster Members with a soulbound Moxie Pass can purchase Fan Tokens, which ensures both commitment and engagement within the community. Furthermore, Fan Tokens focus on utility; selling them means forfeiting access to associated features and benefits.

Moxie Rewards

Moxie is made to reward Farcaster members by blending attention, community, and cooperation together. Each time you earn a reward, Moxie ensures 50% flows directly to you, with 20% directed to your loyal fans, another 20% to fans of your channel (where applicable), and 10% benefiting supporters across the broader Farcaster network – all structured to align with the Fan Token bonding curve.

To foster the growth of Farcaster, 15% of the MOXIE token supply is dedicated to ongoing Engagement Mining programs, while another 25% supports expanding the Moxie protocol, partnering initiatives, and grants.

Engagement Mining programs celebrate your contributions to the Farcaster community, such as through Airstack's Not A Token points system, now reimagined as a daily rewards program powered by Moxie. For a bit of background, Not A Token is a distinct points-based reward system that encourages Airstack’s community members to create outstanding content and developers to innovate with frames and apps.

Through Moxie, your engagement on Farcaster isn't just recognized but celebrated and rewarded, and that's the massive value that lies within this protocol.

MOXIE Token

MOXIE token is the heartbeat of the Moxie protocol you can acquire, stake, and lock up. This token is required for purchasing the aforementioned Fan Tokens that unlock exclusive benefits across Farcaster. Once you swap MOXIE for Fan Tokens, those tokens stay locked up until you decide to sell them. This helps keep everything stable and predictable in the ecosystem.

Also, whenever there's a transaction involving Fan Tokens, like buying or selling them, a 5% fee is charged. This fee isn't kept by anyone – it's burned right away. It's a way to make sure people use Fan Tokens for what they're meant for, not just for betting on their value going up.

And to make things fair for everyone who holds MOXIE, there's a system called Moxie DAO. It lets all token holders have a say in how things are run. This way, decisions are made by the community, not just a few big players.

With a total supply of approximately 10 billion tokens, MOXIE will be distributed to Farcaster members, builders, and early and core contributors through diverse inсentives, including grant programs and airdrops, which all ultimately drive a dynamic and sustainable community.

Summary

Decentralized social platforms like Facebook, Instagram, X, or LinkedIn – it feels like we’re in that era. With Moxie, Airstack, and Farcaster, this vision comes to life, rewarding creators and communities in countless ways. Since the introduction of Farcaster Frames, the number of Farcaster daily active users has increased by 1500%, escalating from nearly 5,000 in late January to approximately 70,000 by June. Moreover, Warpcast’s data underscores the platform’s zenith, reporting around 350,000 registrations.

This ascent underscores the tangible market impact of Frames, further highlighting the burgeoning potential of solutions like Airstack and Moxie, which empower Web3 developers to fully capitalize on this advancement.

The days of your content going viral or reaching 100,000 followers without earning a dime are long gone. Now, your time and every interaction and contribution are valued. Stay tuned!

For more information on Polymorphic Capital portfolio and our investment thesis please visit our website and follow us on Twitter, LinkedIn and Farcaster.