Social tokens are a type of digital asset that provides a new way for individuals, brands, and communities to monetize their online presence and engage with their audience. They are issued on blockchain technology. This offers secure and transparent ownership of the tokens.
Social tokens bring up a whole new avenue of monetization which is decentralized and provides credit to the original authors.
Currently, we probably have heard of creators and influencers on YouTube, TikTok or Instagram that have been restricted from earning their fair-share of income from the work they had created.
This is because in most situations, the middleman companies often take a large cut of the revenue generated and this could be up to 45%!
To make matters worse, they are also limited in terms of the content they produce which restricts the creatives they produce.
With social tokens, creators are more fairly compensated because there is no entity in between. They are also able to retain their right to create any sort of content they wish without getting demonetised.
Unlike traditional cryptocurrencies, social tokens are tied to a particular community, social platform, or individual. They usually offer unique benefits such as early access to content, exclusive merchandise, and decision-making power within the community.
- Social tokens can be used to represent individuals, communities, and even brands.
- Social tokens are often used to incentivize engagement and reward community members for their support.
- Social tokens have the potential to disrupt traditional revenue models for creators and communities, giving them more control over their revenue streams and allowing them to build deeper relationships with their supporters.
Social Tokens vs. NFTs
It’s important to understand the difference between social tokens and NFTs (non-fungible tokens). NFTs represent ownership of a unique item, such as a piece of artwork, and are one-of-a-kind. Social tokens, on the other hand, represent a share in a community or platform, rather than a specific item.
This difference is crucial as it highlights the specific use case of social tokens. Social tokens offer a way for individuals and brands to monetize their online presence and engage with their audience.
NFTs only monetize the asset or goods themselves.
Examples of Social Tokens
Personal Tokens (Creator tokens)
These are tokens created by influencers or famous people that would in turn provide exclusive access to some of their services or offerings.
For instance, a creator token could be redeemed for a personal spa day with a celebrity or you might be able to receive an exclusive dress from a famous designer.
These tokens always have an exclusive offer attached to them which makes them valuable as a token.
These tokens are for community members and offer exclusive content or perks like limited edition merch, early-bird for content access or access to private events.
It could also be a token that is a requirement to join an exclusive community such as the Bored Ape Yacht Club.
Social Platform Tokens
A social platform token is used to incentivize and reward users within a social platform.
The holders can expect a few different kinds of benefits.
For instance, it could provide access to premium content, tip other users or be used in governance. A popular social platform token would be Whale. Here, owners of the token are entitled to a fractional share of the Whale Shark NFT Collection.
How Do Social Tokens Work?
The workings of social tokens are relatively straightforward.
They are created and issued by individuals, brands, or communities, who then offer them to their audience as a way to monetize their online presence.
Token holders then have the opportunity to invest in their favorite creators or communities and receive exclusive benefits as a result.
This is essentially a win-win situation where both the issuer and the token holder benefit from the relationship.
Benefits of Social Tokens
Social tokens are revolutionizing the way people interact within online communities and the ways in which creators earn revenue.
Be Exclusive Within A Community
By holding social tokens, users can gain access to exclusive perks such as private forums, early access to content, and even the ability to vote on important decisions within their community.
They can stay informed and share the latest news with other members, making the community experience more engaging and interactive.
Co-ownership of Content and Revenue
Social tokens eliminate the need for centralized authorities that control content and limit creativity.
Token holders take control and co-own the content by funding the creation of a specific piece of digital art or token.
When the tokens are resold, token holders can receive a share of the profits, making social tokens a profitable monetization avenue for creators.
Transparent and Fair Money
Social tokens provide a more transparent and fair way for creators to make money, instead of relying on platforms like Youtube or Patreon that take a cut of earnings. Fans have an economic incentive to support their favorite creators directly, and creators have more control over their revenue.
Loyalty and Support
For fans, holding a social token is a way to show continued support and loyalty to their favorite content creator.
As the value of the token increases with the creator’s popularity, the investment in their career becomes more significant.
More Revenue Streams
For creators, social tokens provide a new monetization avenue that not only increases their earnings but also gives them more control over their revenue. They can build a closer relationship with their following and earn more from their content.
Safe and Secure
Social tokens run on blockchain technology, making it virtually impossible for a network to be hacked or for fraudulent transactions to occur.
Token holders can be assured that their tokens are authentic and their digital ownership rights are protected. Creators and businesses can also be confident that they are engaging with genuine fans.
4 Social Tokens You Should Know About
Alex Masmej, an aspiring entrepreneur, created ALEX to finance his crypto projects.
With a successful crypto-art backed loan instrument under his belt, Alex raised $20,000 in 100 hours by selling his future income for the next three years in exchange for the ALEX token.
It was the first ever Ethereum personal token sale.
And the rest is history! The market value of ALEX exceeded $2 million during the crypto frenzy, proving the potential of personal tokens.
DJ RAC wanted to reward his loyal fans with exclusive perks and content, and that’s exactly what the RAC token does.
25,000 RAC tokens were distributed among fans, who have supported DJ RAC since his early days. With the RAC token, subscribers can now benefit from various perks and exclusive content reserved for the online community.
RAC is now one of the most successful personal tokens to date!
GCR (Global Coin Research)
Global Coin Research‘s native token, GCR, lets members fund investment initiatives and access private seminars with NFT artists. With weekly hangouts for learners and investors, GCR has already gained over 30,000 members and contributed over $31 million to the project.
By creating content, anyone can become a stakeholder and earn rewards in the form of STEEM.
STEEM is the native currency of the social platform, Steem. The goal of the project is to let users earn rewards by contributing to the development of the platform.
So far, the Steem platform has distributed nearly $59 million in rewards to its contributors. It also processes more transactions than the Ethereum and Bitcoin blockchains combined.
Final Thoughts on Social Tokens
In conclusion, social tokens offer a new way for individuals, brands, and communities to monetize their online presence and engage with their audience.
With the continued growth of the market and the success of current examples, it is clear that social tokens have a bright future ahead of them.
However, it is important for individuals to thoroughly understand the potential risks and exercise caution when investing in social tokens.
Regardless, the potential benefits of social tokens are undeniable and exciting, and it will be interesting to see how they continue to shape the future of decentralized engagement and monetization.
Check out our list of social tokens here!