Social tokens are an innovative form of cryptocurrency, which allow creators to have their own tokens. A creator can be a musician, artist, brand, Individual, or even a community. Social tokens allow creators the opportunity to create their own token that offers a service to their fans, and in return the creator gets paid for their creative efforts directly. Each social token will work differently as the creator of the token gets to decide what is offered with their token.
There are two different types of social tokens:
- Individual tokens
- Community tokens.
What are individual tokens?
These types of tokens are created by individuals and highlights them directly. There are different reasons why individuals might create social tokens: to save money for a new project, to connect and engage with their fans, or even to build a channel where they can post their work. The creator of the token gets to choose how their token works and what will be offered in exchange for purchasing their token. Many creator platforms such as YouTube, Spotify, and Instagram can take as much as 45% of earnings.
How do they work?
Individual tokens work by allowing creators to build and build a loyal following through a tokenized system. People can buy social tokens of an artist they enjoy and in return they will get special rewards from the artist. Rewards work in a tiered system meaning that at each level you need a certain number of tokens to get a specific reward. A reward from a music artist for example could be: special group chats, unique videos or content, or rare merchandise.
Creators have the option to make social tokens which allow for them to be paid adequately for their time and effort. Things creators have to consider when making a social token on their own is: this is now an extension of their brand image, having a coin fail could directly correlate with their brand image. So, it’s important to be aware of this prior to starting a token as you need to be prepared for scenarios such as a bear market. Currently for individual social tokens, we have seen them used more short-term. We suspect to see changes to individual social tokens in the future as it will allow creators to become their own economies.
What are community tokens:
Community tokens are centered around a community and are used for membership. The membership is what gains you access to participate within the community. Once you gain access you can join special chats or services depending on what the community decides to offer.
With how social tokens are in their current state we see community more as its more manageable to keep long term.
An example of a community token would be dGuild. We helped them out in the beginning stages by writing smart contracts and assisting in the front-end UI. dGuild is a blockchain artist community which will be a meeting place for artist and fans.
It will work so artist of any kind can create a profile that allows them to present to everyone what they are doing, which allows people to invest in them by buying their tokens. The artist that are displayed on the page will be based on a TCR, Token Curated Registry. TCR is a voting system that creates trusted list based on the votes of others.
dGuild will incorporate this system into their platform which allows any fake profiles and or bad content to be removed from the website, all done in a decentralized way. Essentially the users of the project get to decide whose profiles are displayed and if they meet all requirements for a trusted account.
What we are capable of doing on the blockchain is endless. We are seeing this as more blockchain technology is becoming available to us and new ideas and trends appear. Social tokens are only just beginning and are going to keep evolving.
In the future we could see social tokens in our daily lives and could possibly have social tokens of our own. But as of now it’s a great way to be involved in a community or to support your favorite artist. The more we take apart in social tokens, practice using them, and learn from them, we will discover their true possibilities.