Full Analysis of the Web3 Social Graph Project CyberConnect

Original source: veDAO Research Institute

On April 28, 2023, CyberConnect announced via its official Twitter that on May 18, the native utility and governance token CYBER of the CyberConnect protocol will be publicly sold through the CoinList platform. This public sale will allow 3% of the total supply of 100,000,000 CYBER to enter circulation, with 25% unlocked after listing and the remaining 75% unlocked linearly each month over 6 months, at a public offering price of $1.8 per token.

About CyberConnect's Financing Situation

Previously, CyberConnect successfully raised funds in both 2021 and 2022:

• On November 16, 2021, Seed Round: raised $10 million. This round was co-led by Multicoin Capital and Sky9 Capital. Investors such as Animoca Brands, Draper Dragon, Hashed, Zoo Capital, Smrti Lab, and Mask Network also participated in this round. The funds were primarily used to help the company team expand, develop the Web3 developer community, and subsequently launch the protocol.

• On May 17, 2022, Series A: raised $15 million. This round was co-led by Animoca Brands and Sky9 Capital, with other participants including IOSG Ventures, Delphi Digital, Protocol Labs, Tribe Capital, GGV Capital, etc. CyberConnect plans to use this funding to continue building the protocol, expand the team, and launch new Web3 projects.

It is worth noting that the institutional price per token in the Series A financing in 2022 was $3, while the price for this public sale is $1.8, which is 40% cheaper than before.

Project Introduction

CyberConnect is a multi-chain decentralized social graph protocol deployed on Ethereum mainnet, Polygon, Solana, and BNB Chain. It enables developers to create social applications, allowing users to own their digital identity (DID), content, connections, and tokenized channels. As of March 13, 2023, there are over 350,000 user identities on the CyberConnect protocol, with over 300,000 monthly active users and a total of over 2.8 million on-chain interactions.

CyberConnect overturns the fragmented social networks of Web2, where users are monopolized by platforms and information and data cannot interoperate between different platforms. It aims to build a decentralized social graph protocol that aggregates a person's social relationships on one platform, allowing users to have autonomy. Users no longer need to recreate their identity, profile, and connections every time they migrate to a new platform. By simply connecting their wallet to CyberConnect, users can request all connections across the entire Web3, accessing all DApps built on CyberConnect without barriers.

CyberConnect breaks down the barriers between different platforms, allowing users to aggregate their social relationships across different interest circles, fields, and platforms into one social network. This also means that users can freely exit one platform or join a new one without worrying about losing their friends, fans, content, or value.

The social graph module consists of two parts: the follow button + the following & followers list. Any Web3-focused social application can integrate CyberConnect without worrying about maintaining their own social graph database.

CyberConnect mainly includes three user-centered features:

1. CyberProfile: A decentralized identity standard that provides access to Web3, used to store all user activity data, allowing developers to map all on-chain credentials/assets to CyberProfile.

2. CyberConnect Social Graph: Connects users' digital identities, data, content, and friends;

3. CyberWallet: The protocol's smart contract wallet, which can securely store user assets.

Token Economics

CyberDAO will be used for governance delegation of the protocol, and CYBER is its governance token, used to protect and manage the DAO. The DAO will control the future use of funds and all core upgrades of the protocol infrastructure.

CYBER will provide the following utilities for the CyberConnect protocol:

• Governance: CYBER token holders will vote on proposals to promote the sustainable long-term development and improvement of the CyberConnect protocol. Upcoming proposals include: activating service fees for paid transactions through the protocol; changes to service fee rates; changes to acceptable tokens for payments; expanding governance to new blockchains; budget allocation for developer funding programs and community contributor programs, as well as offline and online community events for ecosystem development.

• Payment for CyberProfile mint: CyberProfile is the entry point for developers and users into the CyberConnect ecosystem. When purchasing a CyberProfile with a premium username, CYBER will be used as the gas token.

• Payment for Gas in CyberWallet: CyberWallet is CyberConnect's smart contract wallet solution, providing users with a seamless transaction experience without needing a mnemonic phrase or providing blockchain-native tokens for gas payment across different chains. CYBER will serve as the pricing and gas fee payment method for all transactions across EVM-compatible chains within CyberWallet, which is still under development and will be applicable to Ethereum, Optimism, Arbitrum, BNB Chain, Base, and Polygon networks.

The total supply of CYBER is 100,000,000 tokens, with 3% allocated for public sale on CoinList, of which 25% will be unlocked after listing, and the remaining 75% will be unlocked linearly each month over 6 months. The detailed allocation is as follows:

• Team and Advisors: 15%, locked for 15 months after listing, then linearly unlocked quarterly over 3 years;

• Private Sale: 25.12%, locked for 12 months after listing, then linearly unlocked quarterly over 3 years;

• Community Treasury: 10.88%, 10% unlocked at listing, with the remaining 90% linearly unlocked monthly over 5 years;

• Community Rewards: 12%, of which 20% will be distributed to early users (airdrop) after listing, and the remaining 80% will be allocated for future community rewards;

• CoinList Public Sale: 3%, with 25% unlocked after listing, and the remaining 75% linearly unlocked monthly over 6 months;

• Ecosystem Development: 34%. Among which:

• Ecosystem Partners: 9%, 20% unlocked after listing, with the remaining 80% linearly unlocked over 4 years;

• Developer Community: 10%, 5% unlocked after listing, with the remaining 95% linearly unlocked over 4 years;

• Early Integration Partners: 5%, 10% unlocked after listing, with the remaining 90% unlocked over 3 years;

• Marketing: 10%, 10% unlocked after listing, with the remaining 90% unlocked over 3 years.

CYBER Public Sale Information

Release Date: May 18

Release Platform: CoinList

Public Sale Volume: 3,000,000 tokens

Release Price: $1.8

Unlocking Mode: 25% unlocked after listing, with the remaining 75% linearly unlocked monthly over 6 months

Registration Deadline: May 15, 20:00 Beijing Time

Registration Link: https://sales.coinlist.co/cyberconnect

Additionally, CyberConnect states that users with the following identities will have priority in the queue during the CoinList issuance:

• Owners of premium CyberProfiles (ccProfile);

• High-level users in the CyberConnect FanClub;

• Collectors of W3ST users;

• Early supporters on Discord (top 1K, 10K, 100K);

• Holders of Link3 Mystery Boxes or The Shards series NFTs;

• Holders of NFTs from previous community activities—verified Web3 Dwellers, Connect2022 Grand NFTs, #Let'sCyberConnect Season 1 POAPs, and community treasure hunt OATs;

• Donors who have contributed to CyberConnect on Gitcoin.

CyberConnect Outlook and Challenges

Ecosystem Expansion

CyberConnect has created an all-in-one profile product—Link3—and expanded into events, posts, fan clubs, actively guiding users to find high-frequency use cases that combine Web2 and Web3.

CyberConnect adopts a development path of protocol-product-ecosystem, first establishing the protocol, then creating its flagship product Link3, and horizontally expanding to develop the ecosystem.

In addition to building its own sub-line products, they have previously expressed a welcome for already established DApps to join in co-building the ecosystem, rather than starting everything from scratch. CyberConnect does not overly require applications to be purely Web3 native; any meaningful interaction scenario can be integrated into CyberConnect for users to start using, serving as a gateway for data to be on-chain.

These ecosystems bring richer application scenarios to the protocol, aligning with the strategy of prioritizing the creation of social graphs. For example, gaming DApps like DegenReborn, restaurant review DApps like Plato, reading DApps like ReadON, and metaverse DApps like Oasis, even the largest application in the Lens ecosystem, Phaver, has also integrated the CC interface, creating a rich and diverse ecosystem.

Roadmap

This is just the beginning of CyberConnect's journey in building social networks in Web3, aiming to create a future where we have ultimate control over our digital lives. According to its 2023 roadmap, CyberConnect will release several important features in the coming months, including launching the "Login with CyberConnect" SDK and the decentralized content publishing tool Link3 Post provided by CyberConnect in Q2 of this year; launching CyberConnect V3 and deploying it on more EVM-compatible chains in Q3; releasing a beta version of Cyber Wallet supporting ERC-4337; and launching the CyberConnect ecosystem grant fund in Q4 of this year.

Potential Risks and Challenges

1. Privacy Issues: CyberConnect is based on wallet address identity verification, making users' on-chain assets completely open and transparent. Currently, CyberConnect pulls user DApp information and displays it on personal homepages, which may raise privacy concerns regarding assets. Users currently cannot choose which information to display; the rights to independently show and hide personal information and related content should be fully granted to users.

2. Resource Requirements: CyberConnect's future expansion with DApps requires strong business development resources. From a technical architecture perspective, CyberConnect's presentation is not a vast network structure but is primarily presented to users through DApps via data sharing.

3. Data Security: CyberConnect also shares data with other Web3 projects such as zkLink (a cross-chain interoperability protocol including exchanges and operating funds), UniPass (a multi-chain unified encrypted identity), and ensdomains (Ethereum domains). Data sharing is essential for helping to expand the ecosystem, and while it is believed that multi-protocol sharing has data security monitoring measures, it undoubtedly increases many hidden uncertainties.

Conclusion

CyberConnect is a project worth paying attention to in the social track, as it truly connects user relationships through a Web3 protocol. It allows users to maintain their social graph while switching services, carrying over their previous relationship networks, which is one of the core public services that Web3.0 can provide. With two successful rounds of multi-million dollar financing in the past two years, it supports the rapid development of the protocol, and the official organization of operational activities and quick responses to community inquiries can also be resolved swiftly. The competition in the Web3 social track is fierce, and it is hoped that CyberConnect can enrich its ecosystem expansion, focusing on decentralized social platforms, continuously innovating, and delivering more impressive performances.