Unlike other products, information products have unique attributes such as non-competitiveness, high production costs, and low replication costs, which give them the power to cause market failure. However, valuable information that has not been developed is often spread through informal networks of trusted acquaintances. This random and unscientific flow mechanism results in low efficiency in the dissemination of information, and some people may have the ability to take advantage of opportunities provided by the information, but the information may not reach them.

Especially in the Web3 field, information asymmetry has a more significant impact on project parties, developers, and users. However, blockchain technology has the potential to break information asymmetry and build a decentralized information market. In decentralized systems, advanced encryption schemes can eliminate the need for trust in valuable information exchange.

Freatic has made some attempts in this regard, allowing information to "safely and exclusively flow" among participants who comply with the incentive mechanism. Freatic focuses on providing access to centers of undeveloped information that are typically shared in informal networks of acquaintances. Frestic uses blockchain cryptography and game theory to build a sustainable ecosystem that connects individuals with knowledge of undeveloped information and participants who can take advantage of these opportunities.

Yesterday, Freatic announced the completion of a $3.6 million seed round of financing led by a16z Crypto. Ali Yahya, a partner at a16z Crypto, said, "We believe in Freatic's vision for the decentralized information market and are happy to support its development."

Decentralized, Incentivized Information Market

Freatic claims to be committed to using decentralized, game theory, and modern cryptography methods to overcome the limitations of the information market and build a decentralized information market. The Freatic team consists of smart contract developers, engineers, and researchers in game theory and cryptography. They have developed a systematic approach to designing sustainable and incentive-compatible decentralized information flow mechanisms.

Currently, you can learn about Freatic team's information exchange theory through Alpha Factory and Capture The Alpha.

Alpha Factory

Alpha Factory is hosted on Polygon and is a new type of DAO that focuses on collecting individuals' unique insights into cryptocurrency. It uses a decentralized labor income structure, where contributors can plan to deliver crypto projects to subscribers. By using a peer-to-peer consensus mechanism to provide incentives, users can be encouraged to actively share relevant and accurate information.

Before joining The Alpha Factory, users need a specific NFT to determine their role in the community. The NFT is divided into two types: contributors and subscribers. Contributor NFTs can be minted for free up to 20 times, and contributors must actively participate in management tasks, otherwise their NFTs will be destroyed by peers. Subscriber NFTs have 100 units and provide exclusive access to selected sources of encrypted projects chosen by active contributors. NFTs are on a monthly subscription basis, and to continue to have access, a fee of 250 USDC/month is required. The best contributors can share profits from subscriber fees, and outstanding core contributors can submit new projects planned by DAO.

Capture The Alpha

Capture The Alpha is currently built on Arbitrum, and the team has introduced a competitive on-chain reputation system that allows alpha hunters to establish their reputation in finding early-stage crypto projects' Twitter accounts. The information shared by users on Capture The Alpha will be processed through a set of encrypted thresholds and will not be leaked before the specified duration, allowing alpha hunters to prove how early they discovered valuable information.

Individuals can register their X (Twitter) username as an NFT, which will not be made public until the conditions for public information are triggered. The leaderboard NFT can faithfully preserve the discovery order of other hunters behind the first alpha hunter. Since the Twitter ID in the leaderboard will eventually be made public, everyone can verify the authenticity and relevance of the Twitter account they posted and check who was the first to find the alpha.

hotnewcrypto

Before officially announcing Freatic, the development team had already made attempts to provide information services for the cryptocurrency industry. The team stated that their exploration journey began with Hotnewcrypto.com, a news platform launched in 2020 that connects investors with upcoming secretive cryptocurrency startups, providing paid services such as Telegram groups and cryptocurrency project rankings.

hotnewcrypto has improved the trading process for investors in the cryptocurrency industry to some extent. Investors can pay to obtain insider details about new cryptocurrency projects before they are released.

Currently, Freatic has not yet officially launched, and users can submit information to enter the waiting queue.

An informal and underdeveloped information ecosystem means that a group of people can obtain valuable resources and opportunities without the knowledge of another group, which to some extent reinforces the gap between the Web3 ecosystem and the real world, often becoming a game for a few. Although information asymmetry will always exist and cannot be truly "eliminated", Freatic's decentralized information market concept may bring new possibilities to the Web3 ecosystem.

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