Abstract
This study explores the social, emotional, and economic dynamics of virtual gifting within Douyin's live-streaming ecosystem. Adopting a qualitative case study approach, the research involved semi-structured interviews with 10 streamers and 10 viewers, supplemented by participant observation and document analysis. Guided by Symbolic Interactionism, Social Identity Theory, and Uses and Gratifications Theory, the study investigates how gifting functions beyond financial exchange to fulfill deeper psychological and communal needs. Findings reveal that viewers engage in gifting to seek emotional connection, gain social recognition, and express personal identity, while streamers interpret gifts as markers of validation, loyalty, and performance pressure. Virtual gifts act as symbolic currency, reinforcing relationships and community norms through features like leaderboards and animated effects. The practice also exposes streamers to financial instability and emotional strain, particularly when dependent on a few high-value donors. The study highlights the dual nature of gifting as both empowering and burdensome, driven by platform design and user expectations. It underscores the need for sustainable engagement strategies and supportive platform policies that balance recognition with emotional well-being. Ultimately, this research provides a deeper understanding of virtual gifting as a socio-technical ritual that shapes user behavior, identity, and community in China’s fast-evolving digital landscape.