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Dharma launches social payment feature based on Twitter, bridging virtual and real-world transactions

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Dharma launches social payment feature based on Twitter, bridging virtual and real-world transactions

Social media platforms integrating payment functionalities has become one of the current trends. The decentralized lending platform Dharma has implemented a new feature called "social payments," which allows Twitter users to freely send US dollars to each other.

Social Payment Integrating Virtual and Reality

Decentralized lending platform Dharma announced a new "social payment" feature on Twitter on April 21st, which allows payments to be made regardless of geographical restrictions and whether the recipient has a Dharma account. Initially, the payer must have a Dharma account with sufficient funds. Through this feature, payments can be made to any user on Twitter. The final step after confirming the payment is to retweet the payment details to Dharma's Twitter bot and tag the recipient to notify them. The recipient only needs to follow the link provided by the bot to set up and link their Twitter account to receive the funds.

On the other hand, as Dharma is integrated with Compound, a fixed-rate lending platform, interest can be earned based on the rate whether the funds have been withdrawn or not (currently at approximately 3.5% annual interest rate). Dharma stated that social payments can be applied in micro-payments, tipping, cross-border charitable donations, and business transactions, offering limitless possibilities.

Pros and Cons of Dharma's New Feature

In January this year, there were reports that Twitter itself was considering implementing a micro-payment feature, aligning with the trend of creating payment features on social platforms. The fixed interest income feature of Dharma's social payment is attractive. However, compared to payment features on platforms like Facebook, Line, and other social platforms, Dharma's social payment, not being a native feature of Twitter, is relatively complex to operate. From the perspective of the general public, its usability and practicality may not be as good as other platform's payment features.

Furthermore, although Dharma has not disclosed the detailed design logic of this feature, it is speculated that during the period from payment to withdrawal by the recipient, the funds are likely under Dharma's control. While the custody period may not be long, there may be a certain level of trust risk involved.

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