"The Intersection of Status, Utility, and Passion in Social Networks"


Hatched by Glasp

Sep 29, 2023

4 min read


"The Intersection of Status, Utility, and Passion in Social Networks"


In today's digital age, social networks have become an integral part of our lives. We use them to connect with others, share experiences, and seek validation. However, there are deeper dimensions to social networks that often go unnoticed. This article delves into the concept of Status as a Service (StaaS) and explores the intricate relationship between status, utility, and passion in the realm of social media.

The Nature of Social Capital:

Humans are inherently status-seeking monkeys. We constantly strive to maximize our social capital, seeking the most efficient path to gain recognition and validation. While social networks have grown exponentially, few analyze them through the lens of status or social capital. This is partly due to the lack of accurate measurement methods for social capital. However, it is evident that social networks generate far more social capital than financial capital, especially in their early stages.

The Cold Start Problem:

Successful social networks must appeal to users even when they have few users initially. This is known as the cold start problem of social networks. By providing single-user utility, these networks attract early adopters and set the foundation for growth. The chicken-and-egg question of which comes first is answered by the gradual accumulation of users, each contributing to the network's growth. As more users join, the network experiences positive network effects, leading to a positive flywheel of growth.

The Role of Social Capital in Network Success:

Social capital plays a significant role in the success or failure of social networks. Understanding how social networks accumulate social capital assets and structure their status games is crucial. Networks that compete on the social capital axis often have a mysterious allure compared to pure utility-based networks. Social networks that tap into pre-existing social capital from other status games, such as the fame game, bring a massive supply of social capital to the table.

Proof of Work and Status Games:

Status as a Service businesses rely on proof of work to differentiate users and provide a sense of scarcity. Just as cryptocurrencies require proof of work to unlock creativity, social networks need a similar mechanism to incentivize users to contribute. This proof of work can take various forms, such as followers, likes, or other measurable metrics. By rewarding users who contribute valuable content, social networks create a performative revolution, improving the overall quality of posts.

The Fragility of Social Capital:

While social capital fuels the success of social networks, it is also inherently volatile. Networks that achieve significant success often face the winner's curse, necessitating the implementation of algorithmic feeds to maintain quality. However, this diminishes the distribution of individual posts, affecting engagement. The fragility of social capital is evident in the relative nature of status. What matters is not absolute status, but how one's status compares to others.

Actionable Advice:

  • 1. Create a Unique Status Game: When developing a social network, focus on creating a unique status game that offers a different value proposition than existing networks. By incorporating a proof of work mechanism that requires actual skill, you can differentiate your network and attract users who seek a new challenge.
  • 2. Emphasize Utility and Passion: While social capital is crucial, a social network's long-term durability relies on the balance between utility and status. Ensure that your network offers practical features and solves real problems for users. Moreover, develop a passion for your network and use it yourself, as passion is contagious and can inspire others to feel the same.
  • 3. Prioritize Continuous Innovation: To prevent stagnation and maintain user engagement, social networks must continually innovate and adapt. Regularly assess the ROI of posts for new users and invest resources in market making to match content with the right audience. Additionally, focus on adding utility to your network to ensure its long-term viability.


Social networks are complex ecosystems driven by the innate human desire for status and social capital. Understanding the interplay between status, utility, and passion is crucial for the success of StaaS businesses. By creating unique status games, prioritizing utility, and fostering a passion for your network, you can navigate the challenges of the social media landscape and build a durable and engaging platform.

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