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If the replacement is an internet-based social network then I don't think you're solving anything. The founding legend of meetup.com is far more compelling: to get people to meet in real life rather than online. Find a way to get people do more of that and you'll be on the path to correcting the destruction caused by social media in general.
Well, you could build something like Facebook that wasn't tuned for addiction. But then you'd have to fix a billion peoples' addictive behavior to get them to use the new one. And then you'd have to keep the new one from deciding to start maximizing revenue by becoming more addicting...
I always thought a neat model for a platform would be based around Dunbars number. Which state you can have roughly 150 stable relationships. The idea would like twitter but not limiting the character length, rather limit the number of friends you have. This makes those "friends" be of more significance. If you want to add a friend you have to remove one as well, assuming you're already at the limit.
#1 - import all your data that was exported from Facebook

#2 - get billion dollar valuation

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this is one area where blockchain could be useful. When you cant trust a single entity with your data, blockchain would allow a distributed database and give you control over who can see your data.

A distributed repository of data, with multiple vendors providing a variety of user interfaces to access that data.

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This website is an echo chamber for holocaust deniers and other such paragons of empathy and humanity. I know this because a friend of mine recently mentioned how he started on this site because it claimed to be "censorship free" and when he checked back a (long) while later it was all extreme racism and other things like that.

In light of that, having and actively using an account here doesn't look good for you. Unless you're already actively tainted by this sort of thing or you happen to live in a country where this kind of behaviour is accepted (do those exist?).

Not just deniers. Gab is full of straight up holocaust apologists. Posts explicitly praising Hitler are frequently near the top.
I rarely use it, but it is an alternative. Interesting how you overgeneralize an entire platform with thousands of users. Why do you care what other people think about the holocaust? Is it causing you harm? Is someone being violent towards you? Or are your feelings talking? I don't care that there is a group of people denying the holocaust. It doesn't bother nor put me in harms way. Why is everyone so soft these days? Are you new to the internet? life?
It fails immediately with "reasonable advertising".
Mine cryptocurrency in peoples browsers. It's a frictionless way to have users pay for a service via spending using their electricity.
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I'm having a hard time seeing how something coming out of an incubator will be a viable solution to Facebook's destructive nature. As long as the solution is for profit, the resulting outcome will be biased towards monetizing user's data and causing addictive behavior.

IMHO, the money would be better spent funding one of the many open source decentralized solutions such as Mastodon, Secure Scuttlebutt, Beaker Browser, IPFS, etc.