Social tokens are token backed by the reputation of an individual, brand or community. Recently, they have been gaining traction and some people believe they could be the next big thing in the cryptocurrency community.
Artists, musicians, and social media influencers are rushing to tokenize their efforts to gift or sell them to their followers. So, why would this be a thing at the moment?
Over the last few months, decentralized finance (DeFi) liquidity farming tokens have taken the crypto market in a storm. the social tokens are different from these DeFi tokens though. They are built around an ‘ownership economy’ principle with the idea that these communities will have more value in the future than they do currently.
creators and influencers who have created their own community through their work can now monetize their creation as an non-fungible token (NFT), or social token. Their supporters, followers and community can give something back to show their support. the influencers can therefore mint their tokens and offer them as rewards to loyal followers or sell the tokens to earn an additional revenue.
According to Cooper Turley from Audius, social tokens provide people with an avenue of sharing financial upside with their favorite influencers and creators and also enables tiered, tokenized access based on active contributions.
Laura Driskill is an artist who has leveraged blockchain technology to create her own social token. She runs a popular Instagram channel and produces Autonomous Sensory Meridian Response (ASMR) videos that aid in sleep and relaxation. Hers is an ERC-20 social token called Tingle that her followers can buy in exchange for further interaction or use it to purchase merchandise.
A Grammy award winning artist RAC, aka Andre Allen Anjos, has also joined in the movement by announcing a token created by Zora. zora is a platform for artists, creators and brands where they can craft their own market. RAC’s token will be distributed to subscribers of different platforms associated with Zora, and will be used to unlock a gateway to various perks and exclusive content.
According to RAC, crypto enables communities to capture the value they create instead of being monetized by pre existing platforms
A New York based startup, Roll, has stepped up the game by offering to mint Ethereum-based branded digital tokens, also known as social money, for creators and influencers.
Currently, there are around 160 social tokens that are offered on Roll, with the number growing each day as rappers, NBA stars, and entrepreneurs are experimenting with the new method of monetizing content and incentivizing community loyalty.
Image courtesy of pixabay
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