Social tokens allow artists, musicians and social media influencers to create their own currencies to monetize their brand. And all this without having to share revenue with a third-party platform. The Patreon platform, which allows creators to monetize directly from fan subscriptions, announced last week that it is now considering the possibility of offering social tokens to fans as well.
The market capitalization of social tokens has grown from $88 million to over $1 billion in less than a year, showing that self-made economics is the next megatrend in the crypto space. Platforms make it easier for creators to build their own independent economy at no additional cost.
Although the social token ecosystem is still under construction, it already has a number of tools. Aggregators like Seed Club or blockchain infrastructure providers like Roll remove barriers to entry for creators to develop their first tokens for individuals or communities.
What are social tokens?
social tokens (other names are personal tokens, community tokens or designer pieces) are an evolving asset class aimed at generating revenue for independent content.
Previously, authors had to rely on platforms like YouTube or Instagram to make money. However, with social tokens, creators can now develop their own business model. And as content quality and fan engagement increase, the value of social tokens is likely to increase as well.
Tokens can be used for your own brand or by the community. Individual artists or online entrepreneurs can also personal tokens spend to provide their services or improve online engagement. Moreover, can community tokens used to motivate active members of the community. Benefits of membership would include: B. premium content, face-to-face meetings or members-only podcasts.
Social tokens represent a true transition from Web 2.0 to Web 3.0: users no longer depend on any platform to deliver their content.
What is the value of social tokens?
It all starts with the inherent value of a community, a social token only serves as an access key.
The value created by an author can take many forms. For example, he can offer a newsletter and ask subscribers to buy a certain number of personal tokens. In this case, these revenues can greatly exceed an average monthly subscription. Additionally, token holders can increase demand by notifying others about the newsletter.
Like most cryptocurrencies, social tokens have a limited supply. As the community grows and there is more demand for the token, the price will rise sharply. To sustain growth and avoid pumps and dumps, the creator must build a community that adds a socio-emotional element: status. As with NFTs, people want to share what they own in an online community, and it is through these interactions that the value of social tokens is created.
Social tokens can also be useful if an increase in value needs to be passed directly to the community. Creators can ensure that token holders also receive rewards for their active participation. They can also perform buybacks and implement a token burning mechanism to transfer value to token holders.
5 ways to make money with social tokens
Creators can provide premium content to their Discord community and give access to it to their fans via social tokens. It’s also a good way to get feedback and be able to deliver what fans really want.
An example is the top creator on Rally.io, Joe Pulizzi. It offers an exclusive Inner Circle Discord area for token holders who own at least $20 TILT. It also creates value for the community by directly reinvesting rally rewards.
2. Discounts and goods
Online entrepreneurs add great value to token holders by offering attractive discounts on their products. Opening a merchandise store is also a popular choice. By offering exclusive products and discounts, founders give back to the community, which in most cases helps increase overall demand.
Creators can also offer deep discounts on their training courses, trainings, and products to fans who own their tokens.
3. Co-ownership of NFTs
Creators can monetize their works by issuing social tokens, which fans can use to buy parts of NFTs or become co-owners.
The most popular social token associated with NFTs is $WHALE. These tokens are backed by rare NFTs stored in a vault. Besides the price boost associated with NFTs, $WHALE token holders can also benefit from liquidity mining and airdrops. Token holders who invested a year ago have already seen a 10x return.
Creators and artists can use their own social tokens for donations. Fans can donate these tokens directly to their favorite streamers or players to support their work.
This ensures that the community trusts the token and the author is incentivized to generate more engagement with their work from fans to keep the price stable. Creators can take advantage of this new type of donation if they personal tokens or community tokens accept as donations on their YouTube or Twitch channels.
Another widely used approach to monetize social tokens is through referral programs. Creators can get a commission when token holders use their referral link. This money can then be used to redeem social tokens and burn them. Here’s how the famous Twitch streamer uses it Alliestrasza like Binance referral program to redeem and destroy their Allie coins.
Social tokens offer every author the same conditions. Anyone, regardless of audience size, can monetize their work with these tokens in a decentralized way. Plus, you can reward your fans with real value for their contribution to the community. For now, however, we are only scratching the surface. However, this will change as companies launch their own community tokens for employees and customers and explore new opportunities.
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