If we say that high-performance infrastructure is the engine, then the fuel that drives the entire machine forward is the triad of identity, content, and governance. The first ring is on-chain identity NFT: users mint upon registration, which can be bound to social graphs and skill tags, and all interaction points will be recorded in verifiable credentials. Identity has become 'on-chain credit', and is also the benchmark for content revenue sharing and governance weight. The second ring is the content economy market: creators upload virtual items, scripts, and scenes, after which the system automatically calculates royalties based on usage, with 50% settled immediately via $SOMI and 20% locked for governance staking, while the remainder goes into the ecological fund; the hyperbolic royalty model allows high-quality content to achieve exponential earnings, which in turn attracts more creators to join. The third ring is governance and redistribution: stakers can vote on protocol parameters, incentive curves, and fund allocations, and users whose identity points exceed the threshold have their voting power weighted by 1.5 times, realizing 'contribution equals governance'. The three rings cycle rapidly, forming a positive feedback loop from users to content to governance and back to users.
However, the other side of the flywheel is risk leverage. The cold start phase still requires high subsidies, currently around 2.3 million tokens per month for content incentives, accounting for 65% of inflation issuance. If user growth does not meet expectations, the pressure of subsidies will quickly amplify. Furthermore, the 'memory-type identity' involves cross-border privacy regulations, and the EU and California regulations may require projects to provide data deletion interfaces, which poses a natural conflict with on-chain immutability. On the technical side, MultiStream's cross-stream synchronization has experienced brief forks under extreme loads, which, although not causing asset loss, exposed the risks of relying on soft synchronization.
To hedge against these variables, the foundation proposed a two-tier reduction subsidy plan: when the 30-day rolling DAU does not meet the target, the incentive pool automatically retracts by 20%, while increasing the content pledge weight to encourage creators to invest in quality upfront; on the compliance side, a 'reversible encrypted storage' solution is introduced—sensitive user data is only saved in encrypted fragments, satisfying deletion requirements while retaining hashes on the audit chain. Regarding cross-stream forks, the core team is preparing to introduce EigenLayer for re-staking and active penalty mechanisms to enhance validators' willingness for real-time synchronization.
From a macro perspective, the virtual society is still in the early stages of building network effects. The platform's bargaining power over creators and users is temporarily weak, and if incentives are cut too quickly, it may lead to supply-side collapse; however, if flagship scenarios such as immersive music festivals and AI anchor radio stations can be shaped within 12 months, the flywheel's rotation speed will exceed what is required for subsidies. In other words, the current state is a typical case of high growth and high volatility running in parallel: speculators focus on intraday fluctuations, builders pay attention to long-term compound interest, and what truly decides victory or defeat is whether identity points, content sharing, and on-chain governance can accelerate under human-driven motives. For holders, the rarity of $$SOMI will only be re-priced by the market after the flywheel stabilizes—before that day arrives, risk management is more important than valuation models.
