While working on my manuscript for a book on the intersection between social media and blockchain technology, I discovered that it might be prudent to show people new to cryptocurrencies but familiar with social media just what a blockchain-based social media platform might have to offer. So I decided to include a chapter titled “What If Facebook Had a Cryptocurrency?”
Now, I’m acutely aware that Facebook already has a cryptocurrency, but it hasn’t been implemented yet. And it won’t look anything like the fictitious Facebit I’m about to introduce you to.
The following content is not verbatim from my book’s chapter, but it is a summary of the first draft. Your feedback is welcome and encouraged.
Meet Facebit: The Cryptocurrency You Should Have Had
Imagine, if you will, that Facebook had launched with a cryptocurrency. Never mind that, in 2004, there was no such thing. Bitcoin would not be invented for another four years. But the basic building blocks of the first blockchain did exist when Facebook launched.
Suppose that Facebook’s blockchain, we’ll call it Facechain, was built on a delegated proof-of-stake (DPOS) protocol. That would mean three entities could potentially earn Facebit simply by participating on the blockchain on a daily basis. Those entities are:
- Individual users (which could be individual persons or businesses)
- Block validators
- Facebook, the corporation
Let’s assume that Facebook launched with a monthly payout schedule. Let’s also assume that posts older than a month earn no more rewards due to aging out. Two more assumptions we’ll make are the initial price of Facebit at launch was .005 USD and its current price is .45 USD. We’ll also assume Facechain rewards each of the entities the following percentages for their roles in creating blocks.
- Content posters earn 60 percent of block rewards
- Engaged Facechainers (Likers, commenters, and sharers) earn 35 percent of block rewards
- And Facebook keeps the remaining 5 percent of block rewards
In January 2021, Facebook users posted more than 100 billion messages every day. If every post earned 1 Facebit, Facebook’s portion of earnings would equal a measly .05 Facebit per post, that would be a total of 5 billion Facebits daily, or 155 billion Facebits for the month of January 2021. At a valuation of .45 USD, Facebook’s total income from its own cryptocurrency in the first month of this year would have been $69,750,000,000. Compare that to the $85 billion Facebook earned in revenues last year. But keep in mind that we’re just talking about asset appreciation. We haven’t got around to discussing potential revenue streams.
Something far more exciting to talk about is how much individual Facebook users could earn from a Facebook cryptocurrency.
Meet Bob the Facemeister
Bob’s just an ordinary guy. He joined Facebook on the day of launch and has consistently published an average of 18 posts per day for 18 years satirizing Mark Zuckerberg. The values of Facebit have grown steadily during those 18 years as follows:
- 2004 = .005 USD
- 2005 = .006 USD
- 2006 = .007 USD
- 2007 = .009 USD
- 2008 = .010 USD
- 2009 = .015 USD
- 2010 = .018 USD
- 2011 = .020 USD
- 2012 = .030 USD
- 2013 = .050 USD
- 2014 = .085 USD
- 2015 = .10 USD
- 2016 = .15 USD
- 2017 = .19 USD
- 2018 = .24 USD
- 2019 = .29 USD
- 2020 = .33 USD
- 2021 = .45 USD
For simplicity sake, we’ll assume these values are static throughout the year for each year in question.
In the last month of Bob’s first year, he would have had to share $3 in earnings with 1 million users. That’s not very encouraging, but Facebook’s growth over 18 years tells a different story. Continuing to maintain his 18 posts per day output in 2021, by the end of this year, he could expect to earn a total of $1,788.48, just for making fun of Zuck. Not exactly a blockbuster, but considering this is activity he’d have engaged in anyway, the $1.48 per hour he earned for making fun of Zuck isn’t anything to sneeze at either. You’ll see why later.
And, remember, we’re just talking about a small portion of earnings potential Bob had access to as a poster. He could also have earned plenty of revenue by interacting with the posts of other Facebook users. And had he decided to become a block validator, that could be another revenue source. What other ways could Bob have earned some income with a Facebook cryptocurrency?
Stay tuned: I’ll cover a few more ways Bob could have increased his Facebook earnings over the years in my next post.
DISCLAIMER
I am not a financial advisor, nor do I give financial advice. The above information should not be considered financial advice but is for informational purposes only. Neither I nor Cryptowriter are responsible for financial losses incurred as a result of acting on this information. Please consult a financial advisor before making any financial decisions.
This post is published for Cryptowriter in association with Voice.
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This post was originally published at Voice.