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By Ruchi Sharma
The widespread adoption of cryptocurrencies and their maturing ecosystems have paved the way for Web 3.0 technologies. Social tokens have leveraged a lot of the same underlying technology to power online communities.
Let’s take a closer look at social tokens.
What Are Social Tokens?
Social tokens derive their value from the growth of shared creators and their communities. While most current projects are at a proof-of-concept stage, the long-term goal is to create an entirely new way to power the content creator economy. Tokenization can create unique ecosystems that are far more user-friendly and rewarding than current advertising and subscription models.
Types Of Social Tokens:
There are several different types of social tokens. Personal Tokens are created by individuals to exchange forms of labor. For example, $ALEX is a bet on the potential of crypto entrepreneur Alex Masmej through an experiment that’s often called a “human IPO”.
Participation Tokens are created to participate in the potential upside of a group. For example, $SWAGG is a social token backing SWAGG Network creations, including Forefront and upcoming community-initiated products.
Community Tokens are created for memberships or communities. For example, $JAMM is a social token that’s required to gain access to the organization’s discord, newsletter, and other platforms in the Jamm Session ecosystem.
Social Tokens vs. NFTs
Social tokens are fungible in nature. For instance, if a celebrity issues a limited edition token, it would be indistinguishable in function from each other. The first and the last token would be the same and their value would directly correlate to the value of the celebrity themselves.
On the contrary, each NFT is unique, and it incentivizes the collectors who hold them. NFTs are an incredible monetization tool in the Web3 content creator economy. If coupled with social tokens, NFTs can give content creators sole ownership of the platform, intellectual property, and image.
The Bottom Line
Social tokens allow creators to build communities and then also monetize their content. As a key enabler for Web 3.0, several platforms have popped up to make it easier to tokenize communities. The combination of social tokens and NFTs, could be transformative for the creator economy over the coming years.
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