Web3: How could social tokens change everything? Widely used within communities, social tokens could reach maturity with the emergence of web3. Let's see right away what it is and the potential that these tokens offer. We will also see that social tokens could act as a showcase for blockchain technologies. And help generalize, even more, the use of digital assets.
What is a social token?
A social token is a digital asset that is very much linked to social networks. They allow brands, influencers, but also companies to monetize their online communities through blockchain technology. As a general rule, social tokens allow holders to benefit from predefined advantages.
In the manner of the counterparties that we already find for token fans. According to Daniel Nagy, vice president of data storage company Swarm, social tokens have some game-changing potential:
"If done right, they can take communities to the next level, and it's only a matter of time before we see more innovations in this space, most likely related to DAOs or GameFi, combined with ideas around so-called “soulbound” tokens."
Among social tokens, there are two distinct categories:
- Personal tokens
- Community tokens
Initially, the entrepreneur token allowed holders to vote for fun lifestyle choices like his diet. Holding the token also allowed users to receive a portion of the US entrepreneur's earnings. Today, users who hold more than 5,000 ALEX tokens have exclusive benefits like access to the community's Telegram chat.
Community tokens develop in a slightly different pattern. With this type of token, it is a question of rewarding participation in a group. Most projects that offer community tokens work with platforms or networks such as Slack, Discord, or Telegram. The SWAGG token is a good example of a community token.
It is notably used by the Swagg House community to promote collaboration between members. Here too, owning SWAGG tokens gives access to advantages.
Social tokens: the NFTs of tomorrow?
For many, the “hype” that is beginning to take hold of social tokens would resemble the first wave of explosion that took place in the NFT market. According to Daniel Nagy, social tokens could also help strengthen the place of digital assets:
"Right now, the space is still in its infancy, and experimentation is key, but as adoption grows, social tokens can become the next bridge to non-crypto users and bring blockchain closer. far into the mainstream, much like what NFTs have done."
Like the majority of tokens, social tokens can be bought and resold. They are also based on the same concept as NFTs since they take into account the ownership of the holder, through the blockchain. But unlike NFTs, which are by definition non-fungible, social tokens are fungible. On this axis, they are closer to digital assets like Bitcoin or Solana.
Nagy also points out that social tokens could have a strong impact on new businesses and their growth. On this point, social tokens would then play the role of investment facilitator.
How could social tokens be more widely democratized thanks to web3?
For many, the advent of web3 could be extremely profitable for the world of social tokens. Indeed, the two universes share the same driving idea of decentralization.
Social tokens that reward the most creative contributors could therefore find themselves catapulted to the top of the bill at the same time as web3 becomes more democratic.
Among the main uses, social tokens can be used within web3 platforms to tip creators. This system also makes it possible to eliminate intermediaries and therefore ensures better remuneration for content creators.
Like what the Socios.com platform was able to do with fan tokens, platforms are emerging to allow users to create their social tokens. This is for example the case of the Most Fan platform. David Atterman, CEO of the platform notes that social tokens still need to overcome a number of hurdles before going viral.
"Web3 products are still struggling to catch on with a non-crypto audience. With an intuitive design and millions of users following their favorite celebrities, we seek to accelerate the adoption of Web3."
3 benefits of social tokens!
As we have seen, the social token allows a content creator to monetize his audience. But these are not the only benefits of social tokens. Indeed, social tokens have a disruptive potential compared to traditional media communication models. According to some observers, these tokens will eventually build a real ecosystem for brands and large companies. An ecosystem powered by social tokens.
Social tokens also enhance user engagement with one or more content creators. To this end, the sector should rely heavily on the “Play to Earn” or “Engage to Earn” models. Like fan tokens, social tokens must allow users to benefit from exclusive experiences.
As we have mentioned, the absence of intermediaries between the fan and the content creator is also extremely positive for the sector. This allows for a more direct relationship between the fan base and the creators. And this also allows better remuneration for content creators since there is no longer any intermediary.
0 Comments