Different types of cryptocurrency tokens have been possible thanks to blockchain. They offer a variety of benefits. Social tokens, which are both fungible and payment tokens, are a new concept that is gaining popularity in the media world.
We are slowly moving towards Web 3.0, a creator economy era. This will enable authors to connect directly with their audience, eliminating the need for middlemen. This will strengthen creator-follower relationships and ensure that creators’ revenues are not wasted on unnecessary service charges, Social tokens can make this happen.
Social tokens are the type of cryptocurrency that allows creators and brands the ability to monetize services or experiences. A social token can be tied to almost any reward: exclusive content or merch, invitations to meetings in person, etc.
Continue reading to learn about the different types of social tokens available, their benefits, and what you should consider when creating your own.
What are the benefits of social tokens for your business?
The launch of social tokens has many benefits, including:
- Additional Monetization – Brands and creators with a track record can use social tokens for increased revenue streams. Beginners and start-ups, however, can also leverage them to get funding from the community and advertise.
- Increased audience engagement – Social tokens are a great way for you to support your favorite creator or business and get a unique experience in return.
- No middlemen – social tokens enable direct communication between your brand’s audience and your brand, eliminating middlemen and additional expenses.
- Equality – Anyone can create their own social tokens to promote content and products.
Also read: Top 10 Biggest Social Money Cryptocurrencies
What are the different types of social tokens available?
There are four types: personal tokens, community tokens, participation tokens social platform tokens. Let’s take a closer view of each one.
Individuals can issue personal tokens to offer privileged services to their audiences. Only the imagination of the creator can limit the possibilities. You can have anything, from unique merchandise to private Q&A.
Alex Masmej (blockchain entrepreneur, and founder of Showtime) is one of the most notable examples of personal tokens. In 2020, his personal collection of $ALEX tokens was unique.
Alex created his own token to raise funds to pay for his trip to San Francisco. Token holders received a share in Alex’s future income for 3 years, as well as the chance to have an influence on Alex’s lifestyle choices such as accommodation and meals. Alex was able to make $20,000 in just 100 hours.
Community tokens are launched by brands, Companies, or groups, of creators, and offer attractive benefits for their followers and customers, such as exclusive products and services.
Contrary to personal tokens which unlock perks that are associated with a person, community token holders may be granted governance rights and a portion of the company’s revenues.
Decentralized autonomous organizations (DAOs) are often the ones that issue community tokens. WHALE is one of these organizations. It’s a membership club that supports digital art and culture. The $WHALE token, the first social token to be backed by NFT collections, is the $WHALE token. Over 20,000 members are active worldwide.
$WHALE token owners enjoy a variety of benefits, including NFT rentals and airdrops, free market insights and access to exclusive NFTs, liquidity mining rewards, and WHALE DAO governance.
Participation tokens can be viewed as a subcategory for community tokens. They are used to actively participate in project development. These tokens can be used by businesses to reach new audiences or keep current customers engaged in their offerings and activities.
Friends with Benefits is a project that combines culture and crypto. It grants $FWB tokens for its most passionate contributors. They have been actively involved in improving the platform’s projects and making new creative ideas.
Social platform token
You can earn social platform tokens by participating in the activities of a social platform, such as commenting and posting.
Torum is a Web3 social network that connects cryptocurrency enthusiasts and has implemented such a model. Active Torum users can earn $XTM its native token by liking other content, accumulating followers, and onboarding new users through a referral code. You can also use $XTM to reward other users.
Social tokens vs. NFTs
While social tokens and nonfungible tokens might seem like one concept at first glance, there is one important difference: social tokens can be fungible. This means that tokens belonging to the same creator collection can be exchanged and have identical values.
A second difference is that NFTs have a value that depends on a variety of factors, such as rarity and ownership history, while a social token’s value is tied to the creator’s personality and the brand’s reputation.
The top 3 social token platforms you should be looking out for in 2023
Many blockchain platforms make it easy to create social tokens quickly and easily. These platforms also act as marketplaces for these tokens to be traded and showcased. We’ll be looking at Rally, Roll, and BitClout.
Rally allows creators to create their own digital economies. Rally allows anyone to launch their social token. The platform team handles all technical issues and builds tokens on the Ethereum blockchain. Launch one’s social token via Rally. No need to have any experience in crypto. It usually takes between 2 and 3 weeks.
Rally users can purchase social tokens from their favorite creators with a credit card, one of the major cryptocurrencies such as Bitcoin, Ether, or Rally’s native currency, $RLY.
Roll is another platform that allows creators to tokenize their brands. Roll social tokens are based on Ethereum ERC-20 token standards. This means that they can be used in any smart contract application that uses the Ethereum blockchain. Roll does not charge a fee to launch a social token, but Roll will retain a 1% share of the token’s creator.
Roll tokens are all available for sale and displayed on the platform.
BitClout is a Web3 social media platform that runs on the DeSo blockchain, is called BitClout. Its functionality is similar to Twitter’s and allows users to share photos and short posts. Every profile on the platform receives its own coin, which anyone can purchase. The token becomes more expensive the more people purchase it.
BitClout reserved profiles for 15,000 celebrities in order to protect their identities and encourage them to sign up for the platform. Some celebrities don’t like the idea of their photos and names being displayed on BitClout’s token marketplace. However, they did not join the project.
Also read: How to Build a Career in the Crypto Industry
What to consider when launching a social token in your business
These are some of the most important aspects to consider before you launch your social token.
- Token type — choose the type of social media token that best suits your purpose. If you are an individual creator, choose a personal token. Consider a participation token or community if you are representing a company or brand.
- Economy — Create a map of your token economy strategy that includes the token amount, distribution methods, price, and vesting schedule.
- Offers — Decide what perks you’ll offer your followers to acquire social tokens. To increase their motivation to acquire the token, they should be valuable and unique.
- Reputation — The value of your social token is closely tied to the personality and project you represent. So make sure there are no accidents that could damage your reputation.
How to launch a social token
These are the steps to follow when you give your social token permission.
Step 1. Build the community
An established community is essential to secure interest in your social token. Your followers can give you valuable insight into what your token is like, and help you spread the word among a larger community of crypto enthusiasts.
Step 2. Create social token
You can choose to use one of the platforms Rally or Roll which will assist you in launching your social tokens. Their approach is standardized and limited in flexibility because they issue a lot of social tokens. To get a personalized approach, we recommend that you seek the assistance of experienced blockchain developers and consultants that will customize the social token to meet your business’s needs.
Step 3. Distribute social tokens
Start to distribute your social tokens. See how your audience reacts to them. You can then update the token or implement new features based on their feedback.
Social tokens are a brand new feature of the Web 3.0 era. They allow creators and brands financial freedom from intermediaries like labels and social media executives. Social tokens allow for deeper interaction between creators and fans, which can strengthen audience engagement and loyalty.
Depending on which social token is used, holders may be eligible for a range of benefits. These include unique merchandise and services, as well as revenue sharing and governance rights.