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Miral Wali
February 12, 2023

Elrond Network, a well-known blockchain-based network, was established in 2017, but the blockchain was not launched until 2020. Blockchain networks like Elrond improve network scalability and transaction speed by enabling numerous validators to process transactions more quickly. Elrond was developed to be useful across a broad range of use cases and is quick, inexpensive, and efficient. 

The network is designed to meet the needs of a wide variety of users by providing a combination of high-yield performance, interoperability, and scalability at several levels. The primary objective is to improve the performance levels of a decentralised network so that it can compete on a more level playing field with centralised networks. Elrond Network offers industry-leading, unparalleled scalability thanks to the combination of its innovative Secure Proof-of-Stake (SPoS) consensus method and cutting-edge Adaptive State Sharding technology. Elrond claims to conduct over 10,000 transactions per second at minimal transaction fees, in contrast to Bitcoin, which can only handle seven transactions per second.

Social Mining, which was launched in 2018, has been embraced by top cryptocurrency projects with a combined market valuation of $50 billion USD. It has also been integrated with 7+ public blockchain networks over its course (ETH, BSC, MATIC, XEM, XYM, AVAX, EGLD). Social Mining, a pluggable off-chain SaaS from DAO Labs, attempts to address the poor marketing success of technically competent enterprises through a community-oriented staking solution. 

It began with the purpose of rewarding individuals for work that would otherwise be considered insignificant. Social Mining is a technology that enables any tokenized project to set token-denominated incentives for community members that contribute value to the ecosystem; rewards and incentives are determined autonomously by token holders. It has demonstrated a 100 percent boost in token utility while accelerating community growth and mobilising decentralised human capital. Social Mining has spawned numerous potential applications and use cases since its inception.

The Elrond Network initiative was the second one to gain traction thanks to Social Mining. Although Social Mining was still in its infancy, it had advanced enough to process user reputations from a variety of sources that used several variables. Now that APIs had collected enough user information, the project's administrators could easily reward those who deserved it for their valuable contributions to the effort. Prior to the IEO and the introduction of the mainnet, Social Mining was employed with the dual goals of increasing Elrond Network's visibility within the cryptocurrency world and strengthening the commitment of early adopters to the platform's ultimate success.

Elrond Network's seed raise, at an evaluation of $4 million, was conducted on Social Mining, which is just one of the platform's many intriguing features. According to CryptoRank, social miners who were able to earn their incentives for as little as $10 at the start of Elrond Network's voyage earned a ROI of +54,928.7%, making it one of the top 5 best-performing projects of 2019. Elrond's private sale was 10 times oversubscribed, and its public sale on Binance Launchpad attracted more than 97,000 Participants, making it the most in-demand initial exchange offering (IEO) to date.

Social mining is a technology that organises communities, bringing people together in support of a common goal around ideas and projects. Whether that goal is to spread awareness of a new idea or to build a lasting connection to a finished project, it makes them work as a team to promote them, offer value through social media content, and establish a connection to that initiative. 

The platforms provide information, instruction, and reward to a community of people who use their social media accounts to create and share content or ideas. This information is used to make a task that users have to finish within a certain amount of time. For example, they might have to share a tweet with a certain hashtag or make a logo proposal.

If the project pays its enthusiasts and followers for sharing a portion of its worth with those who deeply believe in the vision, this bond becomes a barrier against any exploitative activities, such as Venture Capital, that exist in the crypto realm. If projects were aware of the Social Mining provided by DAO Labs, they would not require venture capital.

When Bitcoin's price fell below $4,000 in the first quarter of 2019, it marked a historic low for the market. Funding through a token offering was extremely difficult for the projects during the all-time low timeframe. For over a year, Elrond's team had been functioning under the radar, and they needed to come out of hiding in order to attract investors and release the project's token.

Even though the market was weak for most of the first two quarters of 2019, projects with good technologies were able to launch their tokens successfully thanks to a well-thought-out plan for building a community and a compelling marketing story.

Social Mining, the platform that kicked off the campaign, provided users with a way to collaborate on and contribute to the expansion and improvement of the project. Through the use of Social Mining, hundreds of potential stakeholders were persuaded to contribute to the expansion of the Elrond ecosystem. Tokens that are able to maintain their value over time are those in which the community plays a central role in their creation and maintenance.

Elrond Network’s Social Mining Platform consisted of a total of 24,609 community members. The platform of the Elrond network was tailored to their specific requirements. It consisted of Soft Staking, which is substantially different from traditional staking, in which users have full custody of their assets. It allows tokens to be removed from exchanges, providing friction to dumping and lowering volatility on the secondary market. Soft staking generates an opportunity cost for stakers; the token falls in value, and they consider selling; yet, if they sell, they lose voting power and hence supremacy in the community and hierarchy over other users.

Reputation, Influence, Workdrops, Leased Reputation, and Validators were some of the components of Social Mining that Elrond Network used.

  • In social mining, Reputation was very important. It made up 65% of the labour index.
  • Influence reflected a user's standing in Social Mining and granted them voting authority.
  • Workdrops were always the way that users were rewarded for helping to grow the Elrond Network. The amount of reward depended on the number of points earned.
  • Leased Reputation was the system that allowed ecosystem members to rent their reputation to other ecosystem users to facilitate their transfer.
  • Validators were the users who validated the contributions of other users to get further rewards.

Social Mining aims to offer people the attention they deserve and enable the monetization of their skills, as opposed to squandering money on pointless marketing initiatives and low-level public relations. The second objective is to enable voting using a risk-free, non-custodial approach. Users are incentivized to be creative and humorous in order to gain; otherwise, they are quickly filtered out and have misused their time.

The content must be innovative, instructive, and entertaining; more importantly, it must contain a message worth sharing. Another way to generate income is to identify yourself as someone who can contribute positively to the environment.

The crypto industry and the technology behind it have grown exponentially since the release of the iconic White Paper in 2008, garnering an unprecedented user base that serves as the backbone of hundreds, if not thousands, of distinct communities. It has long been established that communities, the second-most important thing after technology, significantly improve projects. By supporting these trailblazers of the modern era, the results are guaranteed to be equitable, inclusive, and long-lasting. It's important to recognise that a community is essentially an extension of the product.

The COVID-19 pandemic has demonstrated the vulnerability of the working class. By facilitating a two-way street of value creation between businesses and their communities, "Social Mining" helps to diversify people's incomes and foster the growth of the digital nomad economy. As a result, both corporations and their fan bases benefit, while marginalised populations are able to make a living by supporting causes or products they believe in.

The legacy of social mining: Elrond Network