Attention as the Core: An Overview of the Ecological Layout of TON, Solana, and Base

Author: YBB Capital Researcher Zeke

TLDR

• The current development path of Web3 is shifting from competing for TVL and building DeFi ecosystems to the attention economy. In Web3, SocialFi and Meme are typical representatives of the attention economy. TON, Solana, and Base are among the leaders in this space.

• TON currently has great potential, with mini-games and Mini Apps being exceptionally popular, and it has also attracted the attention of leading exchanges. Solana's Blinks still has many potential issues to address, making it difficult to gain widespread adoption. Base is gradually gaining strength under the management of Coinbase.

• The best economic model may be one without an economic model; once something can be quantified, its lifecycle and ceiling will have limits.

1. Embracing the Attention Economy

Ethereum has completed its transformation from 0 to 1, yet the entire industry has fallen into a cycle of how to solve the transition from 1 to N. As a result, most of our articles this year have focused on how the underlying infrastructure can compensate for modularity defects, lacking discussions on applications and ecosystems. In our previous article, we mentioned that the scarcity of applications is due to Layer 2 not being sufficient to support the emergence of "super applications." In fact, aside from the limitations of virtual machines and TPS ceilings, most Layer 2 projects still focus on how to maximize value extraction from the main chain through incentives and DeFi ecosystems, ultimately aiming to quickly occupy high ground in TVL. A purely template-based approach will only produce a bunch of "Ethereum" clones that are faster, cheaper, and have poorer liquidity, which makes no difference in user experience.

In contrast to "template-based public chains," emerging ecosystems like TON, Solana, and Base are developing true on-chain prosperity by embracing the attention economy. The attention economy, as defined by encyclopedias, refers to the economic model that maximizes the attraction of users or consumers' attention, aiming to cultivate potential consumer groups to achieve maximum future commercial benefits. In this economic state, the most important resource is neither traditional monetary capital nor information itself, but rather the attention of the masses. Only by capturing the public's attention towards a product can they potentially become consumers. One of the key means to attract public attention is visual competition, which is why the attention economy can also be referred to as the "eyeball economy."

In Web2, platforms like YouTube, Twitter, Google, and TikTok are representatives of the attention economy. A simple example is whether you have ever paid while using these platforms. I believe the vast majority would answer no. Have you noticed that these platforms constantly push advertisements for products you like? This means someone is buying your attention, which is also one of the main revenue sources for such platforms, converting traffic into products that support these internet giants with total scales reaching trillions.

In Web3, SocialFi and Meme are representatives of the attention economy. We won't elaborate too much on Meme; instead, let's focus on the current state of SocialFi. Whether it's Friend.tech or Solana's Blinks, I categorize them as SocialFi, and even TON can be included as a social-type application chain. The forms of these three are not important; the ultimate goal is to convert the public domain traffic of traditional Web2 social media into private domain traffic and profit from it. This aligns with what I discussed over a year ago regarding non-financial applications in Web3, which should "siphon" from Web2 rather than reconstructing some heavily disproven applications from Web2.

2. TON

2.1 Architecture

The original design intention of TON was to empower Telegram with smooth payment capabilities and the ability to run Mini Apps, without considering traditional DeFi applications, which is the fundamental reason its TVL is far lower than that of other leading public chains. The reason for designing a chain rather than embedding mini-programs and payments like WeChat is that Telegram's user base is spread across the globe, making it difficult to reach consensus on currency and regulation. In this case, blockchain can serve as a reliable source of trust. Here’s a brief overview of TON's architecture:

1. Multi-chain structure: TON adopts a multi-chain architecture, including a master chain (Masterchain) and multiple workchains. This structure allows different types of transactions and applications to be processed in parallel on different chains, significantly improving overall throughput;

2. Masterchain: The Masterchain is the core of the TON network, storing network configurations and the final state of all workchains. It maintains an active validator list, their stakes, active workchains, and information about related shard chains;

3. Workchains: Workchains are customized blockchains optimized for specific types of transactions or use cases. Each workchain can have its own rules, consensus mechanisms, and token economics;

4. Shardchains: Each workchain can be further divided into up to 2^60 shardchains. This extreme sharding capability allows TON to handle a large number of concurrent transactions;

5. Dynamic sharding: TON employs dynamic sharding technology, which can automatically split or merge shardchains based on network load to maintain appropriate size and efficiency for each shardchain;

6. Hypercube routing: TON uses hypercube routing technology to enable efficient communication between shardchains, ensuring smooth transactions across the entire ecosystem;

7. Validator network: TON uses a proof-of-stake (PoS) mechanism, where validators participate in network maintenance and transaction validation by staking Toncoin;

8. TON DNS: TON includes a domain name system that assigns human-readable names to accounts and smart contracts, enhancing usability;

9. TON Storage: Based on BitTorrent-like technology, TON provides decentralized file storage solutions;

10. TON Proxy: Offers decentralized VPN and TOR-like services, enhancing user privacy and censorship resistance;

11. TON Payments: A payment channel system similar to the Lightning Network, designed for efficiently processing small payments;

12. TON Services: Provides a platform for developers to deploy applications and smart contracts.

This complex architectural design allows TON to theoretically scale infinitely, handling millions of transactions per second from billions of users while maintaining high speed, low fees, and decentralization, providing infrastructure for various applications and use cases. However, in addition to the aforementioned unfriendly conditions for DeFi, this architecture also faces issues of centralization and complexity.

2.2 Mini Games

The launch of Notcoin on Binance has ignited a frenzy for TON's Tap-to-Earn mini-games, which have been extremely successful from a traffic distribution perspective. On the other hand, Binance Labs made its first investment after nearly six months of silence in TON's mini-game ecosystem. While this may primarily be to attract more new users to the exchange, Binance is still the largest barometer in the industry. This at least indirectly proves one thing: Binance is confident that Notcoin will not be the last hit product.

So, returning to the core question, do airdrops combined with mini-games really have sustainability? Most of us encountered a very popular WeChat mini-game in 2022 called "Sheep Game." This game guides users through an extremely simple first level, but the difficulty spikes dramatically in the second level, leading to a buildup of user frustration and a strong desire to win among friends. To obtain props and extra lives to clear the game, users would frantically share and watch ads on WeChat. Social virality combined with unique temporal factors made this product a phenomenal hit that year, with reports suggesting that its daily ad revenue approached 5 million RMB.

In simple terms, a successful mini-game monetization path should maintain user stickiness through addictiveness and achieve monetization through ads or in-game purchases, following the simple logic of "game-ad/recharge-monetization/exit." But is this easy to achieve in Web3? I believe it is difficult and unsustainable. Currently, many project teams are purchasing mini-game source codes, attempting to create a closed loop through airdrop expectations combined with this traditional path, or using exchange referral codes for traffic distribution when they can't even get ads. In the most optimistic scenario, they might get rich off tokens. However, my intuitive feeling about most Tap-to-Earn games is that they are characterized by "homogeneity-studio competition in airdrops-lack of user stickiness-token issuance leads to death." After being disproven, only a few quality projects will remain, while most will end up unable to control the witch hunt and ultimately fail to recoup costs.

Finally, from the perspective of retail investors, I think it is still worth taking a chance and participating moderately. First, the participation cost is close to zero. On the other hand, I personally believe that Binance intends to leverage its influence to recreate several "STEPN" projects. Most projects in the TON ecosystem align well with the aesthetic logic of leading exchanges, i.e., low market cap and high user engagement. Notcoin is also the only mid-sized project listed on both OKX and Binance in this round, with nearly frenzied pump tactics after its launch, and Binance's current attitude towards TON (recently announcing airdrops of Banana Gun to Binance holders) sends signals that remind me of the flavor of STEPN from back in the day. Of course, Binance's ultimate goal is to consume a large number of projects to boost BNB, and whether this is sustainable is not important; what matters is that it can "explode."

2.3 Mini App

Mini Apps have always been one of my personally favored directions, as they represent an interesting attempt towards mass adoption in Web3. I won't elaborate too much on the utility of Mini Apps; we can still find answers from WeChat. In simple terms, the two can form a complementary relationship, with Mini Apps having advantages over WeChat in terms of reach and application flexibility. Just imagine a simple scenario: a small to medium-sized e-commerce platform wants to enter multiple countries' markets today and needs to distribute subsidies to users. If they were to penetrate through local traditional social applications, they would inevitably face significant promotional and time costs. However, using TON not only allows for more effective tracking of user task completion but also offers much lower and more transparent costs, showcasing the bottom-up advantages of blockchain.

2.4 One of the Best Abstraction Layers in Web3

Solana's Meme Summer this year not only propelled itself but also brought TG Bots into the spotlight, with the trading volume of top bots reaching over a hundred million dollars in a single day. A common issue with Web3 dapps is that entry products are not user-friendly for accessing users, leading to the emergence of many abstraction layer projects. These projects often tout "chain agnosticism" as their slogan, but the reality is that the more abstract they become, the more complex they are, failing to find a balance between security and usability. In my opinion, there are only three projects that are the most user-friendly for accessing the chain: OKX Web3 Wallet, UXUY, and TON.

The first two need no elaboration; under the wave of inscriptions, they have garnered a large number of users due to the most user-friendly mobile experience, contributing significantly to the prosperity of the inscription ecosystem. The TG Bot is somewhat special; it is not an officially developed application but rather developed by individual project teams, and it can support all token sniping and trading across major public chains, offering operations that are more convenient and faster than web-based platforms. From development to user mobile terminal experience, it is extremely user-friendly. This line of thought can lead to many imaginations, such as introducing DeFi, chain games, and task platforms from external chains in the form of Mini Apps. Currently, many projects are venturing into this area, and there are methods to achieve decentralization. Perhaps in the near future, we will achieve true "chain agnosticism" in TG.

3. Solana Blinks & Actions

3.1 Architecture

Blinks and Actions are not technically complex; the reason for developing this set of tools is primarily based on Solana's observation of the enormous potential of the attention economy during Meme Summer and the importance of lowering user entry barriers. Therefore, its purpose is similar to that of TON, aiming to use social interaction as its "second layer." Here, I will quote content from our previous research report to discuss the architecture of both:

Actions (Solana Actions)

Official definition: Solana Actions are standardized APIs that return transactions on the Solana blockchain, which can be previewed, signed, and sent in various contexts, including QR codes, buttons + widgets (user interface elements), and websites on the internet.

Actions can be simply understood as transactions pending signature. In the Solana network, Actions can be understood as an abstract description of the transaction processing mechanism, encompassing various tasks such as transaction processing, contract execution, and data manipulation. In terms of application, users can send transactions through Actions, including token transfers and purchasing digital assets. Similarly, developers also use Actions to call and execute smart contracts, implementing complex on-chain logic.

• Solana uses the form of "Transaction" to handle these tasks, with each transaction consisting of a series of instructions executed between specific accounts. By utilizing parallel processing and the Gulf Stream protocol, Solana preemptively forwards transactions to validators, thereby reducing transaction confirmation delays. Through a fine-grained locking mechanism, Solana can simultaneously process a large number of non-conflicting transactions, significantly enhancing system throughput;

• Solana uses Runtime to execute transaction and smart contract instructions, ensuring the correctness of inputs, outputs, and states during execution. After preliminary execution, transactions wait for block confirmation; once a block is agreed upon by the majority of validators, the transaction is considered final. The Solana network can process thousands of transactions per second, with transaction confirmation times as low as 400 milliseconds. Thanks to the Pipeline and Gulf Stream mechanisms, it further enhances network throughput and performance;

• Actions are not just specific tasks or operations; they can include transactions, contract executions, data processing, etc. These operations are similar to transactions or contract calls in other blockchains, but in Solana, Actions have unique advantages: first, efficient processing; Solana has designed an efficient way to handle these Actions, allowing for rapid execution in large-scale networks. Second, low latency; thanks to Solana's high-performance architecture, the processing latency of Actions is very low, enabling Solana to support high-frequency transactions and applications. Lastly, flexibility; Actions can be used to execute various complex operations, including smart contract calls, data storage, and retrieval.

Blinks (Blockchain links)

Official definition: Blinks can convert any Solana Action into a shareable link rich in metadata. Blinks enable Action-supporting clients (browser extension wallets, bots) to display more features for users. On websites, Blinks can immediately trigger transaction previews in wallets without redirecting to decentralized applications; in Discord, bots can expand Blinks into a set of interactive buttons. This allows any webpage interface capable of displaying URLs to achieve on-chain interaction.

In simple terms, Solana Blinks converts Solana Actions into shareable links (equivalent to HTTP). When related functions are enabled in supported wallets like Phantom, Backpack, and Solflare Wallet, websites and social media can become venues for on-chain transactions, allowing any website with a URL to directly initiate Solana transactions.

The direct purpose of Actions & Blinks is to "http-link" Solana's on-chain operations for sharing on Twitter and other Web2 applications.

3.2 Application Examples

This section extracts some usages from the 33 applications compiled by @starzqeth.

1. Sending red envelopes on social media

Author: @zen913

2. Promoting Memes through Blinks

Author: @MeteoraAG

3. Trading in DMs

Author: ft.@tensor_hq

4. Tipping on social media

Author: @zen913

3.3 Lack of Security

Blinks looks cool and has been quite popular recently, but unfortunately, the actual user experience is not very good. First, this feature is not very user-friendly for mobile users. Secondly, any action requires jumping to a detailed webpage to link the wallet and sign the transaction, which increases risks due to the close integration with wallets. Would you dare to sign and complete a transaction through a link posted by a stranger?

Compared to TON, the only advantages of Blinks are broader dissemination and ease of use, but in terms of user experience, it does not compare to the integrated experience of TG + TON. In terms of security, it is not just a matter of decentralization; it requires complete reliance on wallet detection to resolve issues. Therefore, Blinks currently feels more like an experiment, providing other public chains with some ideas, but there are still many security issues that need to be addressed.

4. Base

4.1 Taking Off Without Issuing Tokens

The architecture of Base is familiar to everyone, so I won't elaborate further. One similarity with TON is that both have a powerful parent company. The chain's rise is reminiscent of Solana's current phase, relying on memes to launch, not depending on points or PUA, and relying solely on wealth creation myths to rise above OP. In the early stages, it attracted users through Friend.tech, and after abandoning Friend.tech, it had its own Farcaster to fall back on. One can only say that Coinbase knows how to operate crypto projects like the back of its hand.

4.2 Farcaster

Farcaster is another answer to SocialFi. In simple terms, Farcaster is an open social protocol framework that allows developers to build various social applications, similar to how email protocols support multiple clients. Its standout feature is interoperability, aiming for seamless interaction with other blockchain networks to facilitate smooth exchanges of information and assets across different platforms. This enables the construction of multiple social media dapps on the Farcaster protocol, such as the popular Twitter-like platform Warpcast.

4.3 Application Examples

Here, I quote the organization of core contributors from the "Biteye" community, Wilson Lee.

WrapCast

Warpcast is the core application under the Farcaster protocol and the first Farcaster client, developed by a top engineering team assembled by Dan over more than a year. Its overall architecture is similar to traditional Web2 social software, providing a smooth user experience and currently occupying 90% of the traffic on the Farcaster protocol.

The registration process for Warpcast is simple; the system automatically generates a bound wallet for users, and all Warpcast accounts are associated with a Farcaster ID, with generated content stored in the Farcaster Hub.

This design allows even non-cryptocurrency users to easily enter the on-chain world, significantly lowering the cognitive barrier for new users.

For users familiar with on-chain interactions, they can also bind their commonly used cryptocurrency wallets. These adjustments make Warpcast user-friendly while also playing an important role in promoting the growth of the Farcaster ecosystem and user acceptance.

Jam

Jam is a creator economy platform based on Farcaster that can convert every tweet by users on Warpcast into NFT assets similar to Friend.tech Keys, allowing users to buy/sell each tweet, with prices determined by the Bonding Curve shown below.

Clubcast

ClubCast is an application on Farcaster similar to Knowledge Planet, which has launched the Token-Gated Casts feature, requiring users to pay to purchase other users' Club Tokens to unlock and view hidden content on clubcast.xyz or Frame. Currently, it requires developer permission to use.

4.4 The Best Economic Model May Be One Without an Economic Model

Base aims to solidify itself by providing various SocialFi applications through Farcaster, which differs from TON and Blinks that only draw and convert users from Web2. Farcaster is the most traditional Web3 social protocol, encompassing lightweight applications that empower Web2 and reconstructing heavy applications. The combination of both with "Fi" is closer, but both need to face issues of content pricing and economic model design, while heavy applications also face challenges of content scarcity and user shortage.

Regarding the issues of heavy applications, we have already addressed them at the beginning of the article. So how should we think about the design of economic models? From Friend.tech to Pump.fun, the best economic model may be one without an economic model, allowing content to develop freely without pricing curves. Looking back at the heyday of Friend.tech, there was extensive discussion around the Key pricing model; in fact, once something can be quantified, its lifecycle and ceiling will have limits.