How Much to Sell Your Friend?

How Much to Sell Your Friend?

2023-09-15

Introduction

Can you buy friendship?

How much would you sell your friend for?

Before you recoil in horror, let me clarify: I'm not delving into the dark tales of betrayal, like Judas receiving 30 pieces of silver for betraying Jesus.

No, this is the age of blockchain and cryptocurrency, where "selling" takes on a whole new meaning. In the digital realm, to "sell" is to monetize, to leverage value and resources from each individual. It's about recognizing the potential of social connections in a tangible, quantifiable manner.

Friend tech price for
Friend tech price for @Anonymous

Welcome to the world of "Friend Tech" – a revolutionary concept that's set to redefine the very essence of friendships in the 21st century. It's where technology meets human relationships, creating a platform where friendships aren't just emotional bonds but assets with real-world value.

TVL for friend.tech increased into 20k $ETH ($32mil USD) in 30 days after launched.

Intrigued? Let's dive deeper.


What is Friend Tech?

In today's digital age, where everything from assets to experiences is being digitized and tokenized, why should friendships remain just an emotional construct? Enter "Friend Tech" – a groundbreaking fusion of social dynamics and blockchain technology.

Why it’s so popular?

At its core, Friend Tech is a platform that allows individuals to monetize their social connections. Think of it as a stock market for friendships, where the value of a person's social influence can be traded, bought, or sold. But it's not just about putting a price tag on friends. It's about recognizing the tangible value that each individual brings to their network and the broader community.

Origins of Friend Tech

The concept of monetizing social connections isn't entirely new. Celebrities have long been paid for endorsements, and influencers earn from their followers. But Friend Tech democratizes this idea, making it accessible to everyone, regardless of their follower count or celebrity status.

Behind Friend Tech

The brilliance of Friend Tech didn't just materialize out of thin air. It's the brainchild of a diverse team of tech enthusiasts, blockchain experts, and sociologists. Their shared vision was to create a platform that could quantify the value of human connections in the digital age. With backgrounds ranging from decentralized finance (DeFi) to social psychology, the team has meticulously crafted a system that is both technologically robust and socially insightful.

How to play Friend Tech

1. Native Social Game Mechanics: Friend Tech has introduced a unique social game where users can buy and sell "shares" of other users' connected Twitter accounts. This not only gamifies the social experience but also introduces a new way of monetizing one's social presence. The price of these shares is determined by a bonding curve, meaning the more shares of someone are purchased, the higher their price goes, and vice versa.

2. Token Dynamics: Friend Tech has effectively utilized token dynamics to incentivize early players. For every share of yours that is bought or sold, you earn a portion of a transaction fee. This encourages users to be active early on and to produce engaging content within their chats to attract more users. The invite-only nature of the app, combined with the involvement of prominent Crypto Twitter personalities, created a scarcity-driven virality, propelling its initial adoption.

3. Progressive Web App (PWA) Architecture: Unlike traditional apps that require downloads from app stores, Friend Tech is designed as a progressive web app (PWA). This allows users to have an app-like experience directly from their browser, bypassing app store limitations and fees. PWAs offer benefits like offline functionality, home screen icons, and notifications without the need for an app store download.

4. Seamless Onboarding: Friend Tech prioritizes user experience by offering a seamless onboarding process. Users can sign in using SMS, Google, or Apple. Upon account creation, a self-custodial embedded wallet is provisioned for every user. This approach caters to a mainstream audience while harnessing the power of blockchain infrastructure. The embedded wallet is integrated within the Friend Tech app experience, eliminating the need for browser extensions, seed phrase memorization, or unreliable wallet connectors.

5. Easy to Use: One of the standout features of Friend Tech is its user-friendly design. Unlike many other web3 dapps, Friend Tech focuses on simplicity and accessibility. The app is built for a mainstream audience, ensuring that even those unfamiliar with crypto can navigate and use the platform with ease. The integration with Privy ensures that users have a smooth experience without compromising on security or functionality.

With these features, Friend Tech has not only revolutionized the way we perceive social interactions in the web3 space but has also set a benchmark for other developers in the industry. The combination of game mechanics, token dynamics, and user-centric design makes Friend Tech a frontrunner in the evolution of decentralized applications.


How Friend Tech Works

FriendTech is an automated share trading protocol, powered by a unique pricing model and implemented in a system of non-upgradable smart contracts on the Ethereum blockchain. Very similar with AMM contracts like Uniswap V2.

Each FriendTech smart contract manages a pool of shares associated with a specific subject.

Anyone can become a share provider for a pool by buying shares. These shares represent a pro-rata stake in the total shares of the subject and can be sold back at any time.

The contracts act as automated market makers, ready to facilitate buying and selling of shares as long as the pricing model is preserved. This model ensures that larger trades execute at different rates than smaller ones.

In practice, FriendTech applies a certain fee to transactions, which is used to maintain the protocol and reward the subjects. Each transaction actually increases the total share pool. This functions as a benefit to share providers, which is realized when they sell their shares.

Because the price of shares can only be changed through buying and selling, divergences between the FriendTech price and external factors create arbitrage opportunities. This mechanism ensures that FriendTech prices always trend toward the market-clearing price.

Absolutely, let's incorporate the selling shares functionality into our explanation.

Exploring Key Functions

Buy / Sell Shares

The buyShares function is a central part of the FriendTech Smart Contract. This function facilitates the purchase of shares for a specific subject by an address. Here's a simplified version of the code:

function buyShares(address subject, uint256 amount) public payable {
    // Checks and calculations...
    sharesBalance[msg.sender][subject] += amount;
    sharesSupply[subject] += amount;
    // Emit event and transfer fees...
}

The function starts by performing several checks and calculations. It verifies whether shares already exist for the subject or if the buyer is the subject itself. This is to ensure that only the subject can buy the first share.

The price for the desired amount of shares is then calculated using a unique pricing model based on the current supply and the amount of shares to be bought. The function also computes a protocol fee and a subject fee based on the calculated price.

These fees are then checked against the sent value (msg.value) to ensure sufficient payment. If the payment is sufficient, the buyer's balance of shares for this subject (sharesBalance[msg.sender][subject]) is increased by the amount they bought. The total supply of shares for this subject (sharesSupply[subject]) is also increased.

Key Points

  • The contract uses a unique pricing model to determine the price of shares. The price is calculated based on the current supply and the amount of shares to be bought.
  • The contract charges a protocol fee and a subject fee for each trade. These fees are percentages of the trade price and can be set by the owner of the contract.
  • The contract keeps track of the balance of shares for each address and the total supply of shares for each subject.
  • The contract ensures that only the subject can buy the first share, and it doesn't allow selling the last share.
  • The contract uses the native cryptocurrency (ETH) for buying and selling shares. It handles all the necessary transfers of funds.

Pricing for Friends: Unlocking Social Value

Pricing for friends within Friend Tech is a groundbreaking and innovative aspect of the platform. It introduces a dynamic pricing mechanism that takes into account various factors, making it a unique and exciting feature.

  • Stage1: AMM price discovery
  • Stage2: Crypto community FOMO (marketing hype) based on discovery
  • Stage3: market auction based on real contact value

Cold Start: The AMM Liquidity Boost

In the early stages of Friend Tech, when new users are onboarding, the platform employs an Automated Market Maker (AMM) function. This function serves a dual purpose - providing liquidity and facilitating price discovery.

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During this initial phase, the price of shares can increase rapidly before the true value of connections is fully realized. This early liquidity boost encourages early adopters to participate actively, contributing to the rapid growth of the network.

Real Value Price Discovery for a Friend

The heart of Friend Tech's pricing mechanism lies in its ability to assess and reflect the real value that each user can bring to the network. This value is determined by two critical factors:

  1. Individual Contribution: Friend Tech recognizes that every user is unique, and their ability to contribute differs. For instance, a venture capitalist (VC) leader can bring substantial value to startup founders, while a CEO might offer high-value business development (BD) opportunities to sales professionals. Friend Tech facilitates direct message channels within the app, enabling users to lock in and capitalize on these valuable connections.
  1. Market Demand: Friend Tech introduces a dynamic pricing model based on the principles of auction and market dynamics. Through smart contracts governing share offerings, the market dynamically bids for the best opportunities to connect with key individuals. This ensures that prices are not static but adapt to the ever-changing demand for specific connections.

FOMO ? Riding the Crypto Wave

Friend Tech is designed to thrive within the crypto community, a space characterized by constant value discovery, trading activities, and the propagation of hype. Users of Friend Tech are likely to foster vibrant communities aimed at promoting their own interests and connections.

The nature of the crypto community encourages users to be active in identifying valuable connections, seizing opportunities, and effectively promoting their own interests. The result is an ecosystem where users actively engage in value discovery, trading of shares, and creating hype around their connections within the platform.

In summary, Friend Tech's pricing mechanism is a multifaceted approach that combines early liquidity boosts, real value discovery, market dynamics, and the inherent enthusiasm of the crypto community. This innovative system aims to unlock the full potential of social connections in a way that has never been seen before in the world of blockchain-based platforms.


The Innovation Friend Tech Brings

Friend Tech isn't just another social networking platform; it's a groundbreaking innovation in the Web3 space. Here's a closer look at the key innovations Friend Tech brings to the table:

  1. Web3 Social Monetization: Friend Tech introduces a unique way for individuals to monetize their social presence. Unlike traditional social media platforms that primarily benefit from user-generated content, Friend Tech allows users to quantify and sell their influence, connections, and expertise.
  1. Blockchain-Powered Ownership: Friend Tech leverages blockchain technology to provide users with true ownership of their social connections and networks. By tokenizing these relationships, users can trade, share, and collaborate with others while having full control over their data.
  1. Decentralized Identity: The platform introduces the concept of decentralized identity, where users can build their online reputation and social capital. This decentralized identity is not tied to a single platform, giving users more flexibility and control over their digital presence.
  1. Social Tokenomics: Friend Tech's tokenomics model is designed to reward early adopters and contributors. Users can earn tokens by actively participating, creating valuable content, or bringing in new members, creating a sustainable ecosystem.
  1. Liquidity and Value Discovery: The platform employs Automated Market Makers (AMMs) to facilitate liquidity and price discovery. This feature ensures that early adopters can benefit from the initial growth phase, but the price eventually stabilizes based on real social value.
  1. Collaborative Opportunities: Friend Tech fosters collaboration by enabling users to connect with individuals who have specific skills, expertise, or connections. This opens up new opportunities for partnerships, mentorship, and business development.
  1. Privacy and Control: Users have granular control over their data and interactions. They can choose what information to share, who can access it, and how they want to engage with others, providing a high level of privacy and security.
  1. Community-Driven Growth: The platform thrives on its vibrant community. Users can join interest-based groups, forums, and discussions, creating a sense of belonging and shared interests within the Friend Tech ecosystem.
  1. Market Dynamics: Friend Tech introduces market dynamics to the social networking realm. Users can trade shares in other users, leading to a dynamic and competitive market for connections and social influence.
  1. Incentivization: Through its token economy, Friend Tech incentivizes users to contribute positively to the community. This includes not only creating valuable content but also maintaining a supportive and engaging atmosphere.

These innovations collectively redefine how we perceive and interact within social networks. Friend Tech bridges the gap between personal connections and financial value, offering a new paradigm for social interaction in the Web3 era.

About Phala

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With Phat Contracts, an innovative programming model enabling trustless off-chain computation, developers can create new Web3 use cases.

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