In the social world of Web2, everyone’s connections, community influence, and interaction frequency are invisible "social capital". However, this capital is hard to quantify, cannot be traded, and is even more difficult to convert into actual value. Notcoin's groundbreaking innovation lies in its ability to systematically convert social capital into quantifiable and tradable digital assets on-chain for the first time—your network's breadth can be converted into profit-sharing ratios, your community activity can unlock rights and privileges, and your interaction depth can be translated into ecological discourse power. This conversion is not simply about "social behavior in exchange for tokens", but a redefinition of the "source of value creation": in Web3, social connections, influence, and community participation, which are non-capital inputs, can also become core productivity. Understanding the underlying mechanism of this conversion not only helps in comprehending the source of Notcoin's user stickiness but also reveals new possibilities for value distribution in Web3—moving from "capital dominance" to "symbiosis of behavior and capital".
I. The quantification anchoring of social capital: From "invisible connections" to "on-chain traceable behavioral certificates".
The biggest challenge of social capital is "difficulty in quantification"—you cannot accurately measure the actual value of "having many friends" or "community activity". Notcoin establishes a conversion system of "behavior-data-certification" that anchors intangible social capital as on-chain traceable digital certificates, making every social interaction have a clear value anchor.
Its quantification system consists of three core dimensions, each corresponding to on-chain verifiable behavioral data:
• Breadth of the social network: Core indicators are "number of effectively invited users" and "length of the invitation chain". Each time a user successfully invites an active friend, an "invitation voucher NFT" is generated on-chain, and accumulating 10 can unlock a 15% profit-sharing ratio; if the invitation chain extends to 3 levels (User A invites B, B invites C, C invites D), they can obtain a "network pioneer" badge, directly enhancing the task reward coefficient. Data shows that users inviting more than 10 people have an average daily income 3.2 times that of users with no invitations, proving the direct value of social network breadth.
• Depth of community participation: Measured by data such as "team task completion rate", "community speaking frequency", and "number of times helping new users". Users who join a team and complete more than 80% of collective tasks each week will have "community contribution values" recorded on-chain, and reaching a certain threshold allows them to participate in team rule voting; users who proactively answer new users' questions over 100 times will receive an "ecological mentor" badge, allowing them priority participation in new project beta tests. Data from a certain team shows that users in the top 20% of participation depth have ecological rights valued at 2.5 times that of ordinary users.
• Interaction continuity: Measured by indicators such as "consecutive active days" and "cross-scenario interaction frequency" (e.g., from clicking games to exploring tasks). Users who are continuously active for 180 days will automatically generate a "loyal user certificate" on-chain, which can be exchanged for NOT token fee reduction privileges; users interacting in more than three ecological applications will receive an "ecological explorer" label, enhancing the weight of their behavioral data in third-party projects. Data shows that the ecological retention rate of continuously interactive users (78%) is 3.5 times that of short-term participants (22%), confirming the value of continuity.
These quantification indicators are automatically recorded through smart contracts on the TON chain, generating unforgeable "social capital certificates". Unlike the "number of fans" on traditional social platforms, these certificates are not only honor identifiers but are also directly related to economic rights (profit sharing, discounts, voting rights), making the equation "social capital = actual value" valid. Certain analysis shows that the correlation coefficient between Notcoin users' social capital certificates and income is 0.81, proving the effectiveness of the quantification system.
II. The circulation mechanism of social capital: From "personal holding" to "value exchange within the ecology".
Quantifying social capital is just the first step; the real breakthrough lies in making this capital "circulable"—Notcoin has built a trading and exchange system for social capital, allowing users to convert their connections and influence into liquid value through transfer, pledge, authorization, and other means. This is the key to upgrading social capital from "personal assets" to "ecological currency".
Its circulation mechanism presents multiple paths, covering value needs in different scenarios:
• Certificate transfer: Users can transfer social capital certificates such as "invitation voucher NFTs" and "community contribution values" to other users in exchange for NOT tokens or ecological rights. For example, an average transaction price of a "10-person invitation voucher" in the secondary market is equivalent to $50 NOT, providing early users with a channel for realizing social capital. Data shows that the monthly trading volume of social capital certificates accounts for 18% of the total NFT trading volume in the TON ecosystem, becoming a major trading category for non-art NFTs.
• Rights pledge: High-level social capital certificates (such as "ecological mentors" and "network pioneers") can be pledged to ecological projects to obtain short-term NOT loans or priority task permissions. A certain DeFi project has introduced a "social capital pledge lending" feature, where users pledging a "3-level invitation chain certificate" can obtain NOT loans worth 80% of its value without additional collateral, allowing users without tokens to access ecological resources.
• Data authorization: Users can authorize their social behavior data (such as invitation network structure and community interaction records) to third-party projects in exchange for data income. For example, a certain social DApp in the TON ecosystem pays NOT tokens to obtain users' "invitation network data" for precise customer acquisition, and users can earn a reward of $0.5-2 NOT each time they authorize. This "data as an asset" model extends the value of social capital to ecological collaboration.
The core of this circulation mechanism is the "financialization of social capital"—it is no longer a static personal attribute but becomes a tradable, pledgeable, and appreciating "digital asset". A certain survey shows that 42% of active users have participated in the trading or authorization of social capital certificates, with the average monthly additional income obtained through social capital accounting for 23% of total income, proving that its circulation value has been widely recognized by users.
III. Value distribution driven by social capital: From "capital decides" to "behavior and capital share the cake".
The traditional value distribution logic of Web3 is "capital-dominated"—the amount of token holding determines core rights such as profit sharing and voting rights, making it difficult for ordinary users' behavioral contributions to receive equivalent returns. Notcoin constructs a distribution system that emphasizes both "behavioral contributions and capital inputs" through the value injection of social capital, allowing users who "have connections but no capital" to also gain ecological discourse power.
Its distribution innovation is reflected in three levels, breaking the limitations of the "token-only theory":
• Dual-track system for profit sharing: The basic income of users is determined by "click behavior", while additional sharing is determined by "social capital level". For example, a user holding 100,000 NOT tokens has a basic sharing ratio of 5%, while a user who invites 50 people and has a high community contribution value can reach an additional sharing ratio of 10% even if they only hold 10,000 NOT, resulting in total income surpassing the former. This design allows social capital to directly offset the gap in capital input.
• Weighted voting for ecological governance: Major project decisions (such as adding new task types and adjusting reward ratios) adopt a weighted voting system of "token weight + social capital weight". Holders of social capital certificates such as "ecological mentors" and "network pioneers" have their one vote equivalent to 1.5 votes of ordinary users, ensuring the voice of long-term behavioral contributors. Voting data shows that after weighting social capital, the proposal approval rate of ordinary users increased from 12% to 28%, breaking the monopoly of capital over governance.
• Inclined allocation of ecological resources: Scarce resources such as new project beta testing qualifications and high-yield task packages are prioritized for users with high social capital levels. For instance, 50% of the whitelist for a certain NFT in the TON ecosystem is allocated to users whose "invitation chain length is ≥3", while only 30% is allocated to high token holders, making social capital an important way to access ecological dividends.
The effect of this distribution system is significant: Among Notcoin's core users, 35% are users with "low token holdings but high social capital", who gain returns equivalent to high capital users through their connections and community participation. This pattern of "symbiosis between behavior and capital" makes the ecological inclusiveness and activity far superior to traditional Web3 projects.
IV. The incentive transmission of social capital: From "personal gain" to "ecological prosperity" in a positive cycle.
The sustainability of Notcoin's social capital mechanism lies in its construction of a positive cycle of "personal social capital appreciation → ecological user growth → personal income enhancement"—the behavior of users expanding social capital objectively promotes ecological expansion, while ecological expansion in turn enhances the value of social capital, forming a self-driven growth engine.
The path of this cycle is clearly visible:
• First step: The accumulation of personal social capital drives user growth. Users actively invite new users and promote community interaction to increase the length of their invitation chains and community contribution values, which directly brings incremental users to the ecology. Data shows that 65% of new users in Notcoin come from invitations by existing users, of which users in the "top 20% of social capital levels" contribute 58% of new users, proving the core driving role of social capital incentives in user growth.
• Second step: User growth enhances the ecological value of social capital. As the scale of ecological users expands, circulation scenarios for social capital such as "invitation vouchers" and "community contribution values" become richer (e.g., more projects accept them as collateral), and their value increases accordingly. For example, after Notcoin users grew from 10 million to 50 million, the average trading price of a "10-person invitation voucher" tripled, creating a virtuous cycle where "more users make social capital more valuable".
• Third step: The appreciation of social capital feeds back into personal income. The increase in social capital value enables holders to obtain higher profit sharing and more rights, further motivating them to accumulate social capital (such as inviting more users and deepening community participation), forming a closed loop of "accumulation-appreciation-reaccumulation". A user case shows that after one year of accumulating social capital, their income grew 12 times, with 60% coming from social capital appreciation and 40% from the rewards of the behavior itself.
The underlying logic of this cycle is that "the externality of social capital is internalized"—the personal behavior of users expanding their connections generates positive externalities for "ecological user growth", and Notcoin, through mechanism design, allows users to capture the value brought by this externality (appreciation of social capital), thus continually motivating them to create positive externalities for the ecology. This is the core code for the simultaneous growth of its user scale and the value of social capital.
V. Model challenges and industry insights: The boundaries and future possibilities of realizing social capital.
Although Notcoin's social capital realization model is innovative, it also faces practical challenges such as "quantification accuracy", "sustainability of incentives", and "social alienation". These challenges are not only its own issues but also reflect the common problems of "non-capital value realization" in Web3, while also providing important insights for the industry.
The controversy over the accuracy of quantification is the primary challenge. Core elements of social capital (such as "interaction quality" and "community influence") are difficult to fully quantify through data, and existing indicators (such as the number of invitations and active days) may lead to the alienation of "quantity over quality"—users may invite zombie accounts to inflate invitation numbers or simply log in to increase active days without genuine social interaction. Data shows that the "invalid social capital" (such as zombie invitations) identified through technical means by Notcoin accounts for 18%, although lower than the industry average of 30%, a more precise quantification model (e.g., introducing quality indicators like interaction frequency and joint task completion rates) is still needed.
Balancing the sustainability of incentives is also key. The realization of social capital relies on the continuous incentives of NOT tokens, while the fixed issuance of tokens may face the long-term problem of "reward dilution"—when the growth rate of user scale exceeds the inflation rate of tokens, the returns per unit of social capital will decrease, affecting user enthusiasm. Notcoin's countermeasure is to link "social capital with ecological benefits" (e.g., extracting rewards from third-party project shares), but this model depends on ecological prosperity, making it difficult to completely replace token incentives in the short term.
The risk of alienation in social relationships cannot be ignored. Overemphasizing "the realization of social capital" may turn pure social interaction into "utilitarian invitations", damaging the natural atmosphere of the community. A user survey shows that 27% of users feel "awkward when inviting friends", worrying that social relationships are being hijacked by interests, which may suppress the natural accumulation of social capital.
Despite the challenges, Notcoin's practice still provides groundbreaking insights for the Web3 industry:
• Diversification of value creation sources: Value creation in Web3 should not rely solely on capital input; behavioral contributions (such as social interaction and community building) can also become core productivity, and this diversification is the foundation of ecological inclusiveness.
• Quantification path for non-capital value: Through "behavior on-chain + certification + circulation mechanism", intangible non-capital values (such as social capital and knowledge contribution) can be systematically realized, providing technical feasibility for "inclusive Web3".
• Composite design of the incentive mechanism: Effective incentives should not rely solely on tokens but should combine "economic rewards + social recognition + ecological rights", enabling non-capital investors to receive multi-layered returns and enhance the resilience of incentives against risks.
Conclusion: The realization of social capital reconstructs the value ethics of Web3.
Notcoin's social capital realization model is essentially a reconstruction of Web3's value ethics: it proves that in a decentralized network, factors that were ignored in the capital-dominated era, such as "who you know", "what you do for the community", and "how you engage others", can be just as important as "how many tokens you hold". The significance of this reconstruction goes far beyond the success of a game—it indicates a more inclusive development path for Web3: not to make ordinary people adapt to capital-dominated rules, but to create new rules that allow the behaviors, connections, and creativity of ordinary people to be fairly realized.
When social capital becomes a tradable digital asset, when connections and influence can directly translate into ecological discourse power, Web3 will have truly realized its original intention of "decentralization"—not only in terms of technology but also in terms of value distribution: every participant, regardless of the amount of capital, can receive equivalent returns based on their contributions.
Notcoin's exploration may still have limitations, but the possibilities it has opened are precious enough: in the future Web3 ecology, your connections will ultimately become your most valuable digital asset.@The Notcoin Official
