SocialFi was supposed to change the way creators make money online. Instead, it became one of crypto’s most predictable failures.
Now the attention is elsewhere. X rolls out creator-focused monetization tools that borrow the best ideas from SocialFi… all without the crypto baggage.
SocialFi started the fire
Creators now want direct payments and fans are ready to support them financially. What didn’t work before was that SocialFi platforms attracted traders, not communities.
Friend.tech peaked at nearly 80,000 daily users before falling below 250. Lens saw its business fall after brief growth spurts. Across the industry, studies have shown that more than 90% of users leave within 30 days.
Instead of rewarding creators for their content, most users bet on price appreciation.
X’s creator’s push changed the math
The platform approaches the problem from a very different angle. In January 2026, the platform declared this year the “Year of the Creator,” after closing out 2025 with its highest payouts since monetization launched. X has more than doubled its revenue sharing pool and updated how payments are calculated. Creator earnings are now based on verified Home Timeline impressions.
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X also noted that longer, demanding formats like articles can carry more weight than short articles. Views from higher-tier Premium subscribers have greater value, while the platform says it is stepping up its efforts to detect fraud and fake engagement.
What does this mean for decentralized social media?
X already has scale, creators, audiences, and payments built in. While decentralized social platforms have struggled to maintain tens of thousands of users, X operates with hundreds of millions. If in-app currencies or “Twitter Coins” come next, SocialFi will lose its strongest argument.
Creator monetization no longer needs crypto to work. And if X proves this on a large scale, decentralized social media will be left with very few users and will collect dust.
Final Thoughts
- X creator payouts rise while SocialFi collapses.
- If the “Twitter Coins” arrive next, the distribution will decide the winner.
