Author: Jiahua, ChainCatcher
In the AI era, information overload has become a common challenge. Users need to find Alpha (high-value information) from vast amounts of data and also discern the authenticity of the information. As Nobel laureate Herbert Simon said, 'A wealth of information creates a poverty of attention.'
This is also the current dilemma in the cryptocurrency space: users cannot efficiently determine whether a project is worth participating in and how to participate. The garbage information on Twitter and TG is endless, and personal filtering wastes a significant amount of attention and time. To address this pain point, Backroom proposes a solution based on InfoFi.
What is Backroom?
Backroom is an AI-driven InfoFi protocol that captures information flows within groups and filters out noise, transforming it into a real-time, tradable information market. Creators launch tokenized rooms, utilizing AI to convert their insights into monetizable content. Users can unlock noise-free, high-value intelligence by purchasing on-chain keys tied to each creator's room.
Mechanism Breakdown and Innovations
For creators, the entire process can be completed by setting up Room descriptions, adding Backroom's AI Bot to Discord or Telegram groups, and pricing the Room, allowing them to focus on content creation itself. The AI Bot will filter out noise and irrelevant information from the group, selecting Alpha and automatically organizing it into the Room.
For users, purchasing keys is required to access these rooms, and both the purchase and trading of keys need to use the $ROOM token.
At the same time, the project party allocates 25% of the tokens for growth and creator incentives, while the trading fees for purchasing $ROOM (specific proportions not yet available) and the $ROOM tokens serve as incentives for creators. This can kickstart the economic flywheel: creator incentives attract more excellent creators, providing more Alpha information → more demand for keys → more demand for $ROOM → higher rewards → more creators and traders → more Alpha.
The biggest innovation of Backroom lies in emphasizing the extraction of 'Alpha' in private domains. In an era of information overload, public platforms like Twitter are filled with noise, while private groups often hide the earliest discussions. Backroom aims to utilize AI to monitor these closed spaces in real-time, quantifying information quality to provide users with high-quality, exclusive information flows.
InfoFi Project Comparison
InfoFi (Information Finance) refers to the tokenization of information, which means transforming information into tradable assets. The goal of InfoFi is to optimize the noise in the market, allowing the market to determine the direction of attention rather than the information echo chambers or algorithmic biases created by platforms. Creators gain airdrops and traffic through their creations, project parties seek exposure and attention, and users participate to learn about truly valuable projects.
InfoFi aims to solve the inefficiencies and unfairness in the current market caused by information overload (creators can only earn a small portion of their creative revenue, and users struggle to find Alpha despite spending time and attention), while making the information flow that users receive more intelligent and efficient.
In fact, InfoFi covers all projects that treat information as a commodity: for example, Nansen, Dune, and even Polymarket, as well as Kaito and Cookie. Most revenue opportunities in InfoFi stem from direct participation in projects, such as Kaito posting insights on Twitter to attract traffic or Backroom focusing on the sorting of Alpha information.
Project
Introduction
Core Functionality
Backroom
AI-driven InfoFi protocol focused on extracting high-value information from private groups.
AI Bot monitors Discord/Telegram groups, filters out noise, and organizes Alpha.
Room pricing and key mechanism, using $ROOM tokens for purchase/trading.
Incentivize creators through trading fees and token rewards.
Kaito
InfoFi leader, a center for distributing information, attention, and capital based on cryptocurrency, using advanced AI algorithms to extract and interpret rich signals (e.g., social graphs and semantic understanding) to quantify attention.
The MindShare ranking assesses the heat and spread of project discussions.
The Yapper ranking assesses the heat and content quality of creators.
Users publish tweets about Kaito and related project parties to earn platform points.
Kaito Pro analyzes project heat and user sentiment.
cookie.fun
Using AI to track user behavior and attention, turning it into monetizable assets. The Snaps system rewards content creation and community interaction.
The MindShare ranking ranks creators.
The project party ranks and allocates airdrop shares to creators, rewarding loyalty.
Users publish tweets about cookies and related project parties to earn platform points.
Trends
Trends is a tweet tokenization protocol based on Solana, allowing users to tokenize and trade any tweet and comment on opinions.
Submit tweet links for quick trading.
Creators earn 20% of the transaction fee revenue.
Users publish posts with corresponding tags to earn platform points.
Issues and Summary
Although Backroom is somewhat innovative compared to previous InfoFi projects, it still faces some issues.
Firstly, the $ROOM token empowerment is insufficient. The price of the $ROOM token depends on the trading volume of Keys. If early user growth is slow or high-quality Rooms are scarce, the token value may continuously decline, leading to a lack of motivation for creators to join, forming a cycle.
Secondly, there is insufficient differentiation from traditional paid small group models. Backroom's Rooms are similar to private Telegram groups or WeChat small groups, both relying on content scarcity to attract users. Furthermore, traditional group models already have a user base, and if Backroom does not innovate, it will be difficult to attract new users.
In addition, Backroom relies on a dedicated AI Bot to fetch key information from groups for pushing, which is an important production link in the entire economic flywheel. However, the AI model may misjudge messages due to insufficient training data or algorithm bias, such as mistaking irrelevant discussions for Alpha or overlooking implicit key information.
In conclusion: Future Outlook for the InfoFi Track
Whether it's Backroom, Kaito, or Trends, the core focus of InfoFi projects should be how to bring more authentic and effective information to the market, thus injecting more liquidity into the current market. There are still many issues with InfoFi, such as opaque rules for calculating points and a heavy reliance on AI.
The significance of InfoFi projects may lie in encouraging current market users to move from 'mining and selling' to deeply understanding project mechanisms and diligently building. Project parties should also give airdrop rewards to users and creators who genuinely participate. When more people start producing and providing high-quality, authentic content, and the market pays more attention to actionable and creative projects, the arrival of a bull market will no longer be solely determined by cycles but driven by innovation and value.
(This article is for informational sharing only and does not constitute investment advice.)
Recommended Reading:
The Dilemma of InfoFi in the Attention Economy
KOL Narrative: InfoFi has arrived, and my traffic has dropped to historical lows.
