InfoFi

What Is InfoFi?

InfoFi (Information Finance) is an attempt to monetize the attention economy using modern tech like the blockchain and AI.

In Web2, user data and attention are almost exclusively monetized by large tech companies, which harvest them in order to profit from selling ads.

InfoFi uses blockchain technology to assign a defined value to these intangible assets. It does so by creating markets where users can buy, sell, and speculate on information. This could be predicting the outcome of an election, trading on the reputation of a public figure, or monetizing personal data directly without an intermediary.

The concept of information finance was widely popularized by Ethereum co-founder Vitalik Buterin in a 2024 blog post, in which he outlined its “potential to create better implementations of social media, science, news, governance, and other fields.”

How Does InfoFi Work?

InfoFi protocols generally work by tokenizing information or outcomes. This can take several forms:

Prediction Markets

Platforms like Polymarket allow users to buy shares in the outcome of future events, most notably elections. The price of the shares fluctuates based on collective market belief, effectively turning knowledge into a financial asset that can be traded or bet upon.

Attention Markets

Some protocols allow users to bet on the popularity or “mindshare” of specific creators or narratives. If a topic gains traction, early backers profit, which could theoretically tie monetary value to online virality. 

Data Monetization

Users can selectively share their on-chain data or social activity with advertisers or researchers in exchange for crypto rewards, reclaiming ownership of their digital footprint.

Prominent InfoFi Protocols

1. Polymarket: The leading decentralized prediction market where users trade shares in the outcome of real-world events, effectively pricing the probability of everything from election results to economic indicators.
2. Kaito: An AI-powered search engine specifically for crypto. It indexes scattered information from social media platforms and governance forums to separate valuable signals from noise, rewarding users for quality insights.
3. Ethos: A reputation and credibility platform that allows users to vouch for others, creating a trusted web of on-chain identities to verify information sources and reduce scams.