From whales to minnows: The impact of crypto-reward fairness on user engagement in social media

In an era where user-generated content drives social media growth, effectively incentivizing contributions remains a challenge. This study explores the empirical impact of a crypto-integrated platform, Steemit, focusing on a system transition designed to enhance fairness in reward distribution. We assess how this shift affects user engagement, specifically through the volume of posts. Our findings indicate that a fairer crypto-reward distribution boosts user-generated posts, though the increase is less pronounced for users with higher capital or reputation. Further analysis reveals the complex dynamics of cryptocurrency rewards and their role in fostering individual contributions and platform growth, while offering financial incentives. The effects of fair distribution are consistent across diverse user groups, highlighting novel incentivization strategies in social media and the transformative potential of integrating cryptocurrencies into reward systems.