Promoting Community Benefits & Fair Monetization with Social TokensTable of Contents
Promoting Community Benefits & Fair Monetization with Social Tokens
By CoinUnited
25 Dec 2022
Social tokens are blockchain-based digital tokens that may be used to purchase access to content or pay for a service. The token holder has the option of holding onto it or selling it at a later date if the token's value rises. Social tokens function in the same way as other digital currencies. These tokens, however, are designed to do quite the opposite by giving a community a voice and helping its members build a tight knit group around a single person or business. A social token can be made by anyone. Anyone, from an individual to a corporation, may enter the social token market by releasing their own token to improve the lives of their followers and customers. The holders of social tokens will have a stake in the token's growth in value, which will increase as more people use the token.
In contrast to crypto tokens, the value of social tokens comes mostly from the credibility of the content producer and the unique privileges enjoyed by token holders. For instance, a new band may issue a social token to provide their fans a unique experience. Fans that purchase the token help support the musician financially while also gaining access to exclusive features such as live Q&As, advance album downloads, VIP concert tickets, and backstage passes, as well as other perks. Increases in token value are shared between the artist and their fans. Social tokens have the potential to be extremely profitable for businesses. They're great for getting the word out and raising money for new businesses. Giving token holders early access to privileged content and new goods is a great way for well-established companies like Coca-Cola® and Apple to increase brand value. Increased demand drives up the price of tokens due to their scarcity. Although this may be true to some extent, the value of social tokens can really grow significantly over time. And users may even exchange and gift them to one another.
Platforms built on top of blockchains like Ethereum are the ones responsible for creating social tokens. Social tokens are typically exchanged on exchanges like Rally, following a paradigm similar to that of crypto. To trade them like any other cryptocurrency, given their worth. Global Coin Research (GCR), Whale (WHALE), and Julien Bouteloup are just a few of the popular social cryptocurrencies (JULIEN). Part of social tokens' success is a result of people wanting to avoid dealing with a middleman. Typical Web 2.0 social platforms like YouTube, TikTok, and Facebook take the lion's share of revenues from creators and brands, which might cut into the creator's potential income. To a similar extent, social media platforms exert power over brand followers without providing any real value in return.
Social tokens, on the other hand, utilize the blockchain to get access to a decentralized ecosystem in which content producers can easily market their products without the expense or restrictions of traditional social media platforms. In such a system, the value of a content creator's social tokens can rise in tandem with the creator's fame. Not only can businesses and brands gain from implementing social tokens, but anybody can. These "creator coins" are designed specifically with people and opinion leaders in mind. Individuals, like established businesses, can issue and trade "social tokens" to raise market and boost their public profile. What shares are to a company, a social token is to a person. Proof that the internet has evolved from Web 1.0 to Web 3.0 may be found in the use of social tokens. Search engines like Yahoo and Google made it possible for users to find relevant information on the Internet during Web 1.0, often known as the "information economy." Web 2.0, the "platform economy," which includes sites like Facebook and YouTube and encourages user-generated content, followed the trend. Web 3.0, often known as the "token economy," enables users to access data, generate new materials, and aid in the growth of a platform. Together, producers and customers are brought closer, and a decentralized "creative economy" can take shape.
Tokens can be either "personal" or "communal," with the latter being the more common variety. You may also come across new names like "participation tokens" and "social platform tokens" when content providers find novel applications for these tokens. Some people classify these subsets as separate from the two primary groups of social tokens mentioned at the beginning of this paragraph. Here's a quick rundown of each to clarify.
Personal tokens, also known as "creator tokens," are created by individuals so that they may make money off of their following and offer them special access to content and services. Anyone, from famous people to artists to sportsmen to regular people, may make their own unique tokens to promote themselves and their work. David Bowie, a music superstar who thrived before the advent of blockchain and the creative economy, issued Bowie bonds, which were asset-backed securities. Today, well-known artists issue their own social coins on the blockchain, providing a similar set of incentives. André Allen Anjos (aka DJ RAC), a Grammy-winning musician, released RAC in 2020 as the social token of the racOS platform. Token holders are entitled to a number of benefits, including access to the artist, token airdrops, and curated music playlists. French entrepreneur Alex Masmej sold tokens representing himself, called ALEX, to crypto investors. Token holders are eligible for a portion of Masmej's projected earnings over the following three years, among other benefits.
Whether it's a company or a collection of individuals, they may develop a community token to promote their brand. Token holders are similar to club members in that they have access to exclusive perks only available to them. These advantages are comparable to those provided by private tokens, and in certain cases may even include governance and profit rights in the firm. A DAO, or decentralized autonomous organization, often initiates the distribution of community tokens. Promoting a community token is simpler than a token created by an individual since the group in charge of it already has a sizable fan base. For instance, CoinDesk promoted the release of its DESK token during the tens of thousands-strong Consensus conference in 2022. As a token of its appreciation, CoinDesk gave out DESK tokens at Consensus 2022. The value of the NFTs held in storage has climbed from $500,000 in 2019 when the initiative began to almost $70,000,000 now. Members may rent and buy NFTs from the Vault in addition to having access to special Discord channels, events, and prizes.
Community tokens often include participation tokens as a subset. Community participation is demonstrated, for instance, via TAIKAI's KAI token. TAIKAI welcomes proposal submissions and project development from students, independent professionals, and new businesses. Thanks to the FWB token, a diverse group of people interested in art, technology, and the future of the Internet may work together on exciting new ventures. Token holders can earn additional rewards by summarizing premium material for other users to access.
Tokens for use on social media platforms are issued by the services that support their development and trade. Tokens for Rally, TryRoll, and BITCLOUD are just a few examples of social platform tokens. Popular among users, Rally is a social token platform that facilitates the development of custom NFTs and social tokens for users, including public figures and businesses. Over the past couple of years since its inception, RALLY's market value has increased from zero to over $8 million. The token's single limitation is that it is limited to use on the Rally network, as Rally is a sidechain of the Ethereum network. TryRoll, on the other token, allows users to generate their own ERC-20 tokens that can be used across several networks. It also provides cold storage Ethereum wallets that may deliver ERC-20 tokens, such as social tokens, to any address. Despite its potential, TryRoll is not an ideal platform because to its high network cost and complicated interface.
In the creator economy, which is powered by social tokens, the brand's creator and the token holder work together to increase the value of the brand for everyone involved.
In such a system, the social media platform typically takes a significant chunk of the money made, leaving the content creators with little to no money for their efforts. Social tokens, however, have shifted this dynamic by enabling producers to earn direct cash and distribute rewards among their audience.
With the advent of social tokens, audiences are now able to engage with their favorite creators in new and exciting ways, truly feeling like they've joined the creative on their journey. In exchange, the community benefits from a more tailored encounter, which serves to further forge ties amongst its members. After the release of his YACHTY token, for instance, the rapper's mom sent out handcrafted boxes and gift parcels to his admirers.
Buyers of "creator coins" are effectively endorsing the support. The value of each token is enforced by digital contracts in the same way as stock and bond prices are in the stock market and bond markets, respectively. Since the scope of enforcement and the manner in which users' rights are applied are predetermined by the terms of the smart contract, disagreements are kept to a minimum.
Blockchain technology, in which information is organized into blocks, which each include a bundle of transactions, provides a layer of security for social tokens. For this reason, compromising a blockchain is an extremely high-risk endeavor. However, due to the fact that reputable digital wallets use stringent security methods, social tokens are among the safest digital assets you can have.
It is prudent to weigh the following risks before putting money into a social token.
As an investment vehicle, social tokens are subject to the same risks as any other financial asset. Even while token prices might skyrocket, not all projects have something worthwhile to back up the tokens they issue. This is especially true for social tokens, which aren't supported by the kind of huge venture capital firms that exclusively invest money into proven projects. If the social token's developer suddenly stops working on the project, you'll lose all of your money.
Social tokens are not subject to any kind of worldwide legislation at the moment. As a result, content providers may need to navigate a number of ambiguous legal areas, such as questions of liability and concerns over deceptive advertising. The extent to which consumers will be protected by consumer protection is still unclear under current legislation.
Tokens used in social networks are not NFTs. NFTs are one-of-a-kind because they have characteristics that no other units share. Rather, each social token has the same value, making them fungible. An NFT can be likened to a piece of art for the sake of clarity. However, social tokens function in the same way as any other digital cryptocurrency. Each BTC is roughly equivalent in value to another BTC, therefore they may be compared to Bitcoin. Many content producers utilize both NFTs and social tokens to sell their work, which leads to widespread ambiguity between the two concepts. An artist, for instance, may utilize NFTs to market their work while simultaneously releasing a social token that grants the bearer exclusive access to the artist for Q&A sessions or art classes.
Sometime around the year 2020, the first social tokens reportedly went live. Private NFT collector WhaleShark released their WHALE token, widely regarded as the first social token. Similarly, some give credit to Brooklyn Nets point guard Spencer Dinwiddie for tokenizing his $34 million NBA contract in 2019. No matter which side of the argument you're on, the fact that these two pioneering efforts have gained traction is indicative of the widespread interest in social tokens. To further understand how social tokens will change our daily lives, let's examine some other noteworthy initiatives.
Despite having developed the first crypto art-backed loan instrument before COVID-19, Masmej's financial misfortunes during the event prevented him from gaining the necessary traction. He developed the ALEX tooken and offered it to his fans for a portion of his projected earnings over the next three years so that he could focus on a more long-term endeavor. The fact that ALEX was worth over $2 million during the height of the crypto market is testament to the success of such custom tokens.
André Allen Anjos, a musician, developed the RAC token to provide a means for him to financially compensate his most devoted followers. Following this, DJ RAC gave away 25,000 RAC to the people who had been there for him since the beginning. They were also distributed fairly among DJ RAC's existing Patreon backers, RAC merchandize owners, and Twitch viewers. RAC has quickly become one of the most popular digital identities since its release.
Previously, no collegiate athlete has used the social token, but UCLA's Jaylen Clark is the first. The JROCK token allows Clark's fans to engage with the athlete directly and contribute to the continuation of his career. Token holders will have first dibs on limited edition swag, raffle entries, behind-the-scenes content, and instructional films. Token holders of JROCK may profit from its appreciation in value just like anybody else because to its secondary market liquidity.
Members may network with NFT artists and invest about investment opportunities through exclusive seminars. More than 30,000 people have joined GCR since its start, investing more than $31 million.
In 2020, a pseudonymous NFT collector going by the name WhaleShark introduced a new cryptocurrency they called WHALE. It successfully combines the goals of stable value and growth speculation, making it one of the most popular social tokens. The collection's worth in 2022 was $73 million, a staggering increase from its initial market of $500,000 in 2020.
The currency used on the social platform Steem (STEEM). Official website boasts approximately $59 million in prizes paid out to members. Steem's platform is remarkable in that it handles more transactions than both the Ethereum and Bitcoin networks put together.
Making your own social token is like starting your own online group. You won't find anything like it anywhere else since it empowers both content producers and token holders to jointly build brand value. Content makers are more likely to utilize a social token to allow everyone to profit from community involvement and possible price hikes than to use social media to engage followers. Social tokens, with their substantial value and practical applications, are also here to stay. Consider the case of WHALE. There has been a greater token in the token's market value than in the NFTs upon which it was initially based. In a similar vein, Rally is rapidly becoming the most popular platform worldwide for making custom social tokens.
A Web 3.0 "token economy" will soon replace social media.
In contrast to crypto tokens, the value of social tokens comes mostly from the credibility of the content producer and the unique privileges enjoyed by token holders. For instance, a new band may issue a social token to provide their fans a unique experience. Fans that purchase the token help support the musician financially while also gaining access to exclusive features such as live Q&As, advance album downloads, VIP concert tickets, and backstage passes, as well as other perks. Increases in token value are shared between the artist and their fans. Social tokens have the potential to be extremely profitable for businesses. They're great for getting the word out and raising money for new businesses. Giving token holders early access to privileged content and new goods is a great way for well-established companies like Coca-Cola® and Apple to increase brand value. Increased demand drives up the price of tokens due to their scarcity. Although this may be true to some extent, the value of social tokens can really grow significantly over time. And users may even exchange and gift them to one another.
Platforms built on top of blockchains like Ethereum are the ones responsible for creating social tokens. Social tokens are typically exchanged on exchanges like Rally, following a paradigm similar to that of crypto. To trade them like any other cryptocurrency, given their worth. Global Coin Research (GCR), Whale (WHALE), and Julien Bouteloup are just a few of the popular social cryptocurrencies (JULIEN). Part of social tokens' success is a result of people wanting to avoid dealing with a middleman. Typical Web 2.0 social platforms like YouTube, TikTok, and Facebook take the lion's share of revenues from creators and brands, which might cut into the creator's potential income. To a similar extent, social media platforms exert power over brand followers without providing any real value in return.
Social tokens, on the other hand, utilize the blockchain to get access to a decentralized ecosystem in which content producers can easily market their products without the expense or restrictions of traditional social media platforms. In such a system, the value of a content creator's social tokens can rise in tandem with the creator's fame. Not only can businesses and brands gain from implementing social tokens, but anybody can. These "creator coins" are designed specifically with people and opinion leaders in mind. Individuals, like established businesses, can issue and trade "social tokens" to raise market and boost their public profile. What shares are to a company, a social token is to a person. Proof that the internet has evolved from Web 1.0 to Web 3.0 may be found in the use of social tokens. Search engines like Yahoo and Google made it possible for users to find relevant information on the Internet during Web 1.0, often known as the "information economy." Web 2.0, the "platform economy," which includes sites like Facebook and YouTube and encourages user-generated content, followed the trend. Web 3.0, often known as the "token economy," enables users to access data, generate new materials, and aid in the growth of a platform. Together, producers and customers are brought closer, and a decentralized "creative economy" can take shape.
Tokens can be either "personal" or "communal," with the latter being the more common variety. You may also come across new names like "participation tokens" and "social platform tokens" when content providers find novel applications for these tokens. Some people classify these subsets as separate from the two primary groups of social tokens mentioned at the beginning of this paragraph. Here's a quick rundown of each to clarify.
Personal tokens, also known as "creator tokens," are created by individuals so that they may make money off of their following and offer them special access to content and services. Anyone, from famous people to artists to sportsmen to regular people, may make their own unique tokens to promote themselves and their work. David Bowie, a music superstar who thrived before the advent of blockchain and the creative economy, issued Bowie bonds, which were asset-backed securities. Today, well-known artists issue their own social coins on the blockchain, providing a similar set of incentives. André Allen Anjos (aka DJ RAC), a Grammy-winning musician, released RAC in 2020 as the social token of the racOS platform. Token holders are entitled to a number of benefits, including access to the artist, token airdrops, and curated music playlists. French entrepreneur Alex Masmej sold tokens representing himself, called ALEX, to crypto investors. Token holders are eligible for a portion of Masmej's projected earnings over the following three years, among other benefits.
Whether it's a company or a collection of individuals, they may develop a community token to promote their brand. Token holders are similar to club members in that they have access to exclusive perks only available to them. These advantages are comparable to those provided by private tokens, and in certain cases may even include governance and profit rights in the firm. A DAO, or decentralized autonomous organization, often initiates the distribution of community tokens. Promoting a community token is simpler than a token created by an individual since the group in charge of it already has a sizable fan base. For instance, CoinDesk promoted the release of its DESK token during the tens of thousands-strong Consensus conference in 2022. As a token of its appreciation, CoinDesk gave out DESK tokens at Consensus 2022. The value of the NFTs held in storage has climbed from $500,000 in 2019 when the initiative began to almost $70,000,000 now. Members may rent and buy NFTs from the Vault in addition to having access to special Discord channels, events, and prizes.
Community tokens often include participation tokens as a subset. Community participation is demonstrated, for instance, via TAIKAI's KAI token. TAIKAI welcomes proposal submissions and project development from students, independent professionals, and new businesses. Thanks to the FWB token, a diverse group of people interested in art, technology, and the future of the Internet may work together on exciting new ventures. Token holders can earn additional rewards by summarizing premium material for other users to access.
Tokens for use on social media platforms are issued by the services that support their development and trade. Tokens for Rally, TryRoll, and BITCLOUD are just a few examples of social platform tokens. Popular among users, Rally is a social token platform that facilitates the development of custom NFTs and social tokens for users, including public figures and businesses. Over the past couple of years since its inception, RALLY's market value has increased from zero to over $8 million. The token's single limitation is that it is limited to use on the Rally network, as Rally is a sidechain of the Ethereum network. TryRoll, on the other token, allows users to generate their own ERC-20 tokens that can be used across several networks. It also provides cold storage Ethereum wallets that may deliver ERC-20 tokens, such as social tokens, to any address. Despite its potential, TryRoll is not an ideal platform because to its high network cost and complicated interface.
In the creator economy, which is powered by social tokens, the brand's creator and the token holder work together to increase the value of the brand for everyone involved.
In such a system, the social media platform typically takes a significant chunk of the money made, leaving the content creators with little to no money for their efforts. Social tokens, however, have shifted this dynamic by enabling producers to earn direct cash and distribute rewards among their audience.
With the advent of social tokens, audiences are now able to engage with their favorite creators in new and exciting ways, truly feeling like they've joined the creative on their journey. In exchange, the community benefits from a more tailored encounter, which serves to further forge ties amongst its members. After the release of his YACHTY token, for instance, the rapper's mom sent out handcrafted boxes and gift parcels to his admirers.
Buyers of "creator coins" are effectively endorsing the support. The value of each token is enforced by digital contracts in the same way as stock and bond prices are in the stock market and bond markets, respectively. Since the scope of enforcement and the manner in which users' rights are applied are predetermined by the terms of the smart contract, disagreements are kept to a minimum.
Blockchain technology, in which information is organized into blocks, which each include a bundle of transactions, provides a layer of security for social tokens. For this reason, compromising a blockchain is an extremely high-risk endeavor. However, due to the fact that reputable digital wallets use stringent security methods, social tokens are among the safest digital assets you can have.
It is prudent to weigh the following risks before putting money into a social token.
As an investment vehicle, social tokens are subject to the same risks as any other financial asset. Even while token prices might skyrocket, not all projects have something worthwhile to back up the tokens they issue. This is especially true for social tokens, which aren't supported by the kind of huge venture capital firms that exclusively invest money into proven projects. If the social token's developer suddenly stops working on the project, you'll lose all of your money.
Social tokens are not subject to any kind of worldwide legislation at the moment. As a result, content providers may need to navigate a number of ambiguous legal areas, such as questions of liability and concerns over deceptive advertising. The extent to which consumers will be protected by consumer protection is still unclear under current legislation.
Tokens used in social networks are not NFTs. NFTs are one-of-a-kind because they have characteristics that no other units share. Rather, each social token has the same value, making them fungible. An NFT can be likened to a piece of art for the sake of clarity. However, social tokens function in the same way as any other digital cryptocurrency. Each BTC is roughly equivalent in value to another BTC, therefore they may be compared to Bitcoin. Many content producers utilize both NFTs and social tokens to sell their work, which leads to widespread ambiguity between the two concepts. An artist, for instance, may utilize NFTs to market their work while simultaneously releasing a social token that grants the bearer exclusive access to the artist for Q&A sessions or art classes.
Sometime around the year 2020, the first social tokens reportedly went live. Private NFT collector WhaleShark released their WHALE token, widely regarded as the first social token. Similarly, some give credit to Brooklyn Nets point guard Spencer Dinwiddie for tokenizing his $34 million NBA contract in 2019. No matter which side of the argument you're on, the fact that these two pioneering efforts have gained traction is indicative of the widespread interest in social tokens. To further understand how social tokens will change our daily lives, let's examine some other noteworthy initiatives.
Despite having developed the first crypto art-backed loan instrument before COVID-19, Masmej's financial misfortunes during the event prevented him from gaining the necessary traction. He developed the ALEX tooken and offered it to his fans for a portion of his projected earnings over the next three years so that he could focus on a more long-term endeavor. The fact that ALEX was worth over $2 million during the height of the crypto market is testament to the success of such custom tokens.
André Allen Anjos, a musician, developed the RAC token to provide a means for him to financially compensate his most devoted followers. Following this, DJ RAC gave away 25,000 RAC to the people who had been there for him since the beginning. They were also distributed fairly among DJ RAC's existing Patreon backers, RAC merchandize owners, and Twitch viewers. RAC has quickly become one of the most popular digital identities since its release.
Previously, no collegiate athlete has used the social token, but UCLA's Jaylen Clark is the first. The JROCK token allows Clark's fans to engage with the athlete directly and contribute to the continuation of his career. Token holders will have first dibs on limited edition swag, raffle entries, behind-the-scenes content, and instructional films. Token holders of JROCK may profit from its appreciation in value just like anybody else because to its secondary market liquidity.
Members may network with NFT artists and invest about investment opportunities through exclusive seminars. More than 30,000 people have joined GCR since its start, investing more than $31 million.
In 2020, a pseudonymous NFT collector going by the name WhaleShark introduced a new cryptocurrency they called WHALE. It successfully combines the goals of stable value and growth speculation, making it one of the most popular social tokens. The collection's worth in 2022 was $73 million, a staggering increase from its initial market of $500,000 in 2020.
The currency used on the social platform Steem (STEEM). Official website boasts approximately $59 million in prizes paid out to members. Steem's platform is remarkable in that it handles more transactions than both the Ethereum and Bitcoin networks put together.
Making your own social token is like starting your own online group. You won't find anything like it anywhere else since it empowers both content producers and token holders to jointly build brand value. Content makers are more likely to utilize a social token to allow everyone to profit from community involvement and possible price hikes than to use social media to engage followers. Social tokens, with their substantial value and practical applications, are also here to stay. Consider the case of WHALE. There has been a greater token in the token's market value than in the NFTs upon which it was initially based. In a similar vein, Rally is rapidly becoming the most popular platform worldwide for making custom social tokens.
A Web 3.0 "token economy" will soon replace social media.
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