“The next big thing."
That's what the CEO of Real Vision, the renowned investor Raoul Pal, called social tokens. We anticipate that they will continue to gain importance, popularity, and utility in the years to come. But what exactly are social tokens, and how can they benefit both users and creators? Let's dive in.
💰 Understanding Social Tokens
Social tokens are digital on-chain assets used by individuals (such as influencers, celebrities, or artists), brands, or communities (such as football teams, clubs, or DAOs) to monetize experiences/services or gather support in unconventional ways.
In the modern digital landscape, artists and celebrities often share their content on platforms like YouTube, Instagram, and Spotify, earning revenue in the process. However, these platforms not only take a significant share of the earnings but also exert control over the content itself. This is where social tokens set themselves apart. They offer creators greater freedom, direct interaction with their fans/followers, and complete autonomy, distancing themselves from centralized platforms. This shift has sparked a surge of interest in social tokens.
➕ Advantages of Social Tokens
1) Community Engagement: Token holders gain access to private forums, exclusive content, and the ability to influence community decisions.
2) Content Freedom: Social tokens reduce centralized control, empowering creators and giving their audience a stronger say.
3) Profit Sharing: Token holders co-own NFTs, earning from resales and royalties.
4) Direct Monetization: Fans can directly support creators, bypassing third-party platforms.
5) Investment in Creators: The value of social tokens grows with the creator's popularity, providing financial benefits to fans.
6) Revenue Control for Creators: Creators have greater control over earnings and establish closer connections with their audience.
7) Security: Blockchain technology ensures high security, guarding against fraud and hacking.
🔎 Types of Social Tokens
According to Messari's "The Value Capture of Social Tokens" article, social tokens fall into three interrelated categories:
💎 Creator Tokens
Individuals like influencers and artists create these social tokens to monetize their content and garner support from their audience. The tokens are sold to their followers/fans, boosting their popularity and revenue. Token holders often enjoy various privileges, such as contacting the celebrity or joining exclusive chat groups.
💎 Community Tokens
Community tokens are issued not by individuals, but by communities. These communities can range from sports teams and clubs to DAOs or groups formed around artists or celebrities. These tokens provide various benefits and access to the community, and their value can increase as the community grows and succeeds.
💎 Social Platform Tokens
dApps, often issue their own digital currencies known as "platform tokens." These tokens are used to encourage users to participate on the dApp's platform. Users can use these tokens for various purposes like tipping content creators, voting on decisions about the platform, or buying products and services.
⭐ Popular Social Tokens
Whale (WHALE): Whale is a unique token backed by a valuable digital art collection and NFTs. It's considered one of the pioneering social tokens that successfully bridged the gap between cryptocurrency and digital art.
Roll (Social Money): Roll provides a platform for creators to issue their own branded digital currency or social money. These tokens can be used to unlock benefits, content, or experiences within the creator's community.
Chiliz (CHZ): Chiliz is a token designed for sports and entertainment, powering the Socios.com platform. It allows fans to engage with their favorite sports teams through voting rights in club decisions and offers exclusive rewards.
Rally (RLY): Rally is a platform that enables creators to launch their own digital currency to build independent economies with their communities. Each creator's coin is unique to their brand or community.
Explaining Social Tokens to Grandma 👵💡
You have a special digital token, kind of like a rare coin, but it's for the internet. This token is linked to someone famous you like - maybe a singer or a sports team. By having this token, you get special treats: maybe early access to their music, or a chance to see them play before everyone else.
These tokens are valuable, not just like keepsakes, but they can actually become more valuable if the person or team becomes more famous. And don't worry, they're kept safe in a digital way, using something called blockchain. It's a bit like having a secure online album where you keep these special tokens. So, it's a new, fun way to feel closer to your favorite stars in this digital age!
You can also follow me on other platforms:
