The Future of Mask Network: How to Balance Web2 Compatibility with Web3 Innovation?

About Mask Network

Mask Network bridges Web 2 and Web 3, allowing seamless interaction with decentralized applications (dApps) within traditional social media platforms. By integrating privacy tools and financial functionalities into a familiar interface, it lowers the barrier to entry for using Web 3 and promotes its adoption. Its unique approach embeds Web 3 features into Web 2 platforms, enhancing accessibility and driving mainstream user interaction with decentralized ecosystems.

Basic Information

• ATH : $41.45

• ATL : $0.9765

• Current Price : $2.26

• Current Holders : 13,939

• Market Cap : $226,218,552

• Fully Diluted Market Cap : $226,753,785.01

• Circulating Supply : 100,000,000 MASK

• Total Supply : 100,000,000 MASK

• Token Performance Over the Past Three Months:

Image from TradingView

Growth Trends

Global Market Size Forecast for SocialFi: According to a market report by Verified Market Research, the market size of SocialFi is expected to grow from $1.2 billion to $12.5 billion, with a compound annual growth rate (CAGR) of 45%. Data Source: Verified Market Research

Team Introduction

Compiled by BTX Research

Project Narrative

Track Narrative

• SocialFi: SocialFi aims to decentralize social media, enabling users to own their data, directly monetize content, and integrate financial services into social interactions.

Project Narrative

• Mask Network is a protocol that embeds Web3 functionalities (privacy tools, token management, decentralized applications) into traditional Web2 social platforms like Twitter. This approach lowers the entry barrier for mainstream users and promotes widespread adoption of decentralization.

Ecosystem Overview and Horizontal Comparison

Ecosystem Overview

Mask Network has been actively building a Web3 social ecosystem by supporting over 100 projects covering social protocols, social applications, infrastructure, gaming, and social intelligence. The network has established itself as a key player in the Web3 space by promoting growth through funding, investments, and hackathon events.

Investments in key projects such as TON, RSS3, dHEDGE, Scroll Protocol, Tako Protocol, Decrypt, and Meson Network align with its decentralized vision. These investments further strengthen its decentralized social network ecosystem, driving a broader Web3 ecosystem that promotes user privacy, autonomy, and financial freedom.

Comparison with Similar Projects

Compiled by BTX Research

Problems to be Addressed

In Social Media and Web3:

1. Traditional social platforms have failed to truly empower users with data ownership.

2. Content monetization is often controlled by centralized entities (e.g., advertising revenue).

3. The barrier to entry for Web3 remains high for average users (technical complexity).

Solutions

Provided Products/Services

• Mask Wallet (launched in 2021): Allows token management on social media and direct interaction with decentralized applications (dApps).
• Tessercube (launched in 2019): A privacy-focused decentralized platform for secure data storage and collaboration.
• Next.ID (launched in 2021): An open-source protocol for connecting Web2 and Web3 identities, focusing on user privacy.
• Firefly (launched in 2022): A decentralized social network platform that integrates blockchain with traditional content.

Founder's Perspective

Founder Suji Yan envisions a world where social media users can seamlessly utilize Web3 functionalities on their favorite Web2 platforms.

Use Cases

• On Twitter: Users can encrypt posts, send encrypted tips, or interact directly with NFTs through Mask.
• DeFi Integration: Access lending protocols through the same social interface.

Token Technical Architecture

Mask Network operates through browser extensions or integrated widgets, overlaying Web3 functionalities onto Web2 social platforms. This architecture simplifies user onboarding while retaining the security and decentralization characteristics of blockchain technology.

The following diagram illustrates how Mask Network subsystems work together:

Data Source: Mask Network

System Workflow:

• Users initiate actions (e.g., clicking a button) through Content Scripts.

• Content Scripts send requests to the Background Service for processing.

• After processing, the Background Service returns results to the Content Scripts, updating the UI.

• Users can modify settings through the Options Page, which also interacts with the Background Service via messaging.

• Injected Scripts run when the webpage loads, modifying the webpage environment to ensure the functionality of Mask Network operates smoothly.

Token Economics

Token Types

• MASK: Utility + Governance Token
• Utility: Used within the ecosystem for staking, governance, and certain service fees.
• Governance: Used for voting on MaskDAO proposals.

Token Distribution

Data Source: CoinMarketCap

Token Unlock Schedule

By January 2024, MASK tokens will be fully unlocked.

Data Source: CoinMarketCap

Project Development

• Partnerships and Business Expansion:

• DeFi (Decentralized Finance): Mask Network has integrated with well-known platforms such as Aave, MakerDAO, and Compound.

• Decentralized Data Management: Mask collaborates with Codatta to enhance data verification, identity management, and personalized services.

• Digital Identity Solutions: Acquired the decentralized identity platform Nametag to provide users with greater control over their digital identities.

• Recent Collaborations and School Donations: Mask Network has donated funds to top institutions such as UC Berkeley and HKUST, enhancing its brand visibility.

• Airdrop Activities: Mask Network has benefited from airdrop activities from Arbitrum DAO and there are potential rumors about future airdrops, which may further incentivize community participation.

• Funding Programs: Mask Network has provided funding and investments to over 100 Web3 projects, helping to drive the development of decentralized ecosystems across various fields (e.g., social protocols, DeFi, etc.).

• Yield Mechanism: Mask Network offers a staking mechanism with an annual percentage rate (APR) of approximately 25.76%, encouraging users to stake MASK tokens and participate in network governance.

On-Chain Data and Insights

On-chain data shows that MASK token ecosystem activity is steady and ongoing.

Major Holders: Excluding foundations and exchange holders, the top 10 holders account for 5.22% of the total supply.

Token Allocation: The total supply of MASK tokens is 100 million, and 100% is currently in circulation.

Staking

• Staked Tokens: 3.11 million MASK tokens are currently staked.
• Annual Percentage Rate (APR): The staking APR is 25.76%.

Token Holding Period

Data shows that most MASK token holders have held for over two years, indicating strong market confidence and long-term commitment. Chart Source: Nansen

Token Unlock Plan

As of January 2024, all MASK Network tokens will be unlocked. The token release follows a gradual increase from 10.91 million tokens in February 2021 to 100 million tokens in January 2024, optimizing liquidity to support long-term development.

Capital Inflows and Outflows

Analysis of 30-day capital inflows and outflows for MASK tokens at the beginning of 2025 shows that capital flows are nearly balanced:

• Inflows: $223.7 million

• Outflows: $227.793 million

• Difference: A slight difference of $4.23 million, indicating stable capital flow with no significant capital flight or accumulation.

(1) Mask Exchange Inflows and Outflows and Price Performance

Data Source: Cryptoquant

(2) MASK 30-Day Inflows

Data Source: Arkham

(3) MASK 30-Day Outflows

Data Source: Arkham

Trading and Holder Activity

• Daily Token Transfers: An average of 550 token transfers per day, reflecting ongoing network activity and user engagement.
• Number of Holders: The number of MASK token holders is approximately 32,000, indicating a growing and diverse community.

(Data Source: Etherscan, Bscscan, Polygonscan)

Investment Risk Warning

Investing in MASK Network and its associated digital assets carries significant risks due to the inherent volatility of the cryptocurrency market. While MASK Network is positioned as a leader in the Web3 social ecosystem, please be aware of the following key risks associated with investment:

1. Market Volatility Risk: Cryptocurrency prices are highly volatile and can lead to significant gains or losses in a very short time. The value of MASK tokens may experience significant fluctuations, especially after market events or changes in investor sentiment.

2. Liquidity Risk: MASK tokens may experience periods of insufficient liquidity, particularly during market downturns or when large holders choose to liquidate. This may lead to difficulties in executing trades at desired prices, resulting in potential slippage.

3. Regulatory Risk: The regulatory environment surrounding cryptocurrencies remains uncertain. Regulatory actions in major markets may affect the legal status of MASK tokens, impose restrictions on trading, or create obstacles for the operation of MASK Network.

Disclaimer

This article and related content are for reference only and do not constitute any form of investment advice, financial advice, legal opinions, or other professional consultation. All information is based on publicly available data and general analysis, and may be inaccurate, incomplete, or outdated. Investors should independently assess their circumstances and make cautious decisions.