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Social Tokens

April 17, 2024
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Have you ever wanted a say in how Real Madrid, Juventus or FC Barcelona run their clubs? Now you can

 

The crypto world is always chasing the next big thing, but everyone is chasing the shiny coins that they believe will 1000X or the amazing Metaverse where we will all roam around some day. Few people are looking at the practical applications of cryptocurrencies. To entice the world to believe in something, sadly many people still want to be able to see, feel and touch their assets. The immediate solution is Social Tokens.  Social Tokens are seldom considered by crypto fanatics because they are not as appealing as the Metaverse or NFTs.

 

What is a Social Token?

social token is a type of cryptocurrency used to monetize a brand, community or influencer. They can be personal (or creator tokens) or community tokens. Many communities, influencers, celebrities, and businesses use social media or other media streams to monetise their skills or services. Typically, in such scenarios, the platform that they use, for instance, Facebook or Instagram, shares the revenue and claims artistic control on their content.

 

With social tokens, the content creators can eliminate this barrier and bring forward a new principle of ownership in the digital economy. These tokens are decentralised and secured by the blockchain. They are created on the same model as common cryptocurrencies like Bitcoin or Ether.

 

How do social tokens work practically?

A talented singer, comedian, or social media influencer can easily form a community of loyal followers. This gives content creators the opportunity to launch their own social token where relevant content can be shared with their followers. Celebrities can use social tokens as a gatekeeping mechanism by offering premium access to content only for their largest token holders.

 

If you have faith that a particular artists work will gain more following in the coming years you can buy the token issued by them early on. Each new token that the artist issues will typically be at a higher value than the previous one. The value of your token rises as the community grows and more tokens are issued.

 

Social Tokens vs NFTs

Social tokens are interchangeable (not unique)  digital currencies. For example, a sports club like FC Barcelona might issue a limited number of tokens, which are exactly the same. There would be no differentiating properties between the first and last tokens created. They would all correlate with the value of the sports club itself.

 

NFTs on the other hand have unique properties that incentivise collectors to hold these assets. They are excellent tools for monetization within the Web3 creator economy. When paired with social tokens, NFTs can grant content creators sole ownership of their platform, image and intellectual property. Social tokens serve as the guide rails to what eventually becomes an economy: more specifically, the creators personal economy.

 

Benefits of social tokens

  • Social tokens are better than old-fashioned reward points schemes
  • Ever heard of the influencer with 2 million followers who only sold two t-shirts for an entire campaign? Social tokens will fix that mess. The tokens are built over blockchain, so all valuable information is public knowledge, like fan conversion rates. This will help brands create an ecosystem for their businesses where only genuine fans or consumers are expected to participate in transactional experiences.
  • The creator economy is still in its infancy stage. Social tokens will allow content creators to engage with their fans more closely than ever before. They will also give creators more control over the revenue from their work, as well as reward loyal fans and token-holders.

 

Two practical examples of social tokens

CHILIZ is a Fan Token Offering (FTO). These tokens are a finite, digital asset that provide access to an encrypted ledger of voting and membership rights ownership. Ownership offers fans the ability to participate in fan-led decisions through a mobile voting platform, as well as serving as a ticket into a secure, exclusive inner circle of fans, with shared passions and beliefs. The more tokens a fan holds, and the more they vote, the higher the clout rating of that fan, moving them upwards through different reward tiers until they have access to the biggest VIP benefits that are on offer.

 

ECOMI is a utility token owned by VeVe. VeVe has secured some massive IP partnerships in its early inception. In October 2021 they added Disney to that growing list. This is what really grabbed my attention. Disney is not simply any small partnership. Disney is the friendliest most religious cult on the planet. Being able to share in the Disney brand through ECOMI is fascinating and potentially profitable.

 

The cover page for this article is a book by Eliot Couvat. The link for those who want to read more on this topic https://www.goodreads.com/book/show/59827330-the-social-token-revolution

 

Disclaimer: Nothing in this article should be seen as financial advice. Everything stated is for educational purposes. Only opinions are expressed.

 


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