Grow your brand in web 3.0 and discover what are social tokens and how they affect the NFT space in our guide.
Blockchain, cryptocurrencies, and non-fungible tokens (NFTs) have opened the door for new decentralized assets for brands, content creators, and influencers. One of the most practical examples is tokenized communities.
Social tokens or coins are an integral part of such tokenized communities. Community members hold some amount of tokens or coins to participate in community activities like play to earn, pay to play, developing blockchain-based solutions, and so on.
Recently, businesses are also utilizing social tokens to build a pool of loyal customers and rewarding them with social tokens, promotional offers, and personalized services.
This article will explore what social tokens, their working processes, their importance, examples, and ways to launch one.
What Is a Social Token?
Social tokens refer to a method of digital possession, through which content creators, social influencers, and even businesses can monetize their services or experiences in the Web 3.0 ecosystem.
Also known as personal tokens, creator coins, or community tokens, these blockchain-based decentralized tokens function as a contract that content creators sell to people with product ownership or special access.
Social Tokens: A Deep Dive
Consequently, this ownership turns into an asset that one can resell, and its value might increase. The value of a social token depends on the growth of its community and shared owners.
Currently, most social tokens belong to a proof-of-concept stage. However, the aim is to fuel the content creator economy in a new way.
Social tokens have the potential to create more rewarding and user-friendlier ecosystems compared to the existing models based on advertising and subscription.
The followings are the types of Social Tokens:
- Personal Tokens: Individuals create these social tokens to sell in exchange for their creative content or services.
- Community Tokens: These tokens cater to the social community members.
Social Tokens: the Working Process
To understand how social tokens work, take a look at the following example:
If you’re a budding business or talented content creator, selling your products or content to the public might be difficult. However, if you can group some like-minded followers who are interested in your content, you can directly offer them relevant services or content in the form of social tokens.
To do so, you can launch your own social token and share it with your loyal and dedicated followers to exchange benefits. As your followers purchase the tokens, they get a pre-defined level of ownership of the content or product, which they can access in a new ecosystem.
If the ecosystem can generate higher demand for the product, the token value might increase over time. You can also say that these tokens function like company stocks, but there are some differences.
Here, unlike in the stock market, the token creator can decide who can own these tokens and what will be the services for each token value. Moreover, followers who own the social token may have voting rights to influence the content schedules, access to private content, and other exclusive features.
Social Token Examples
Here are some examples of social tokens or coins:
1. KSK Honda Coin ($KSK)
Japanese soccer player Keisuke Honda created a personal coin or token named KSK Honda Coin. He’s the first person to use the brand coin provided by Rally.
By buying this token, anyone from his global fan community will get access to his life as an entrepreneur and soccer player. The facilities include private chats, exclusive video updates, and recognition via special social posts.
2. TILT Coin ($TILT)
The TILT is a platform for content entrepreneurs that came up with its own coin, named TILT coin. The cryptocurrency used a decentralized network called The Rally.
These social token owners can avail of discounts and rewards as a member of the TILT community. With the growth of its community, the platform plans to build its own economy with this coin.
3. Friends With Benefits ($FWB)
Trevor McFedries created this social token named Friends With Benefits for its members of a private discord server of the same name. While it has additional perks, this social token will let you become a part of this exclusive community of thinkers and creators.
4. Gen.G Strike Coin ($GGSC)
Gen.G Strike Coin is the official cryptocurrency of Gen.G Esports. With this token, fans can engage with a community and enjoy rewards, including private chats, voting rights, merch pre-sales, and getting responses to suggestions.
5. Rally ($RLY)
Rally is a Web 3.0 platform that enables solo artists, content creators, brands, influencers, and tokenized communities to monetize their activities by launching social tokens. It also has its own social token named Rally ($RLY).
Rally, as a platform, maintains all the assets on the Ethereum blockchain so listing your social tokens on secondary crypto marketplaces becomes easy.
6. Global Coin Research ($GCR)
Global Coin Research is a decentralized autonomous organization (DAO) that does research and development work on cryptocurrencies, NFTs, blockchains, and decentralized finance technologies.
$GCR is the social token of this community consisting of crypto researchers, writers, venture capitalists (VCs), company executives, technologists, general community members, and readers.
How to Launch a Social Token
Probably due to the complexity of the social tokens, no platform is yet to offer self-service to create social tokens. However, some platforms, such as Roll and Rally.io, assist you in minting social tokens. Follow these steps if you want to launch your social token:
1. First of all, create your profile on the preferred platform and apply to launch the social token.
2. Now, add a name to your social token. It could be anything—you can get naming inspiration from your name or your community.
3. Finally, create a plan for launching the token. You should utilize social platforms to announce the token and influence others to purchase it.
Additionally, you can try out the following techniques to spread the news:
1. Offer community benefits for token owners, such as creating private Discord channels or Telegram groups.
2. Arrange events to give out tokens to your loyal followers.
3. Add the social token to exchange which will let people trade it with other tokens.
Why Does Your Brand Need a Social Token?
As more creators and influencers are opting for social tokens, there is no reason for you to shy away from it. Here are some reasons for rolling out a social token:
1. Reward Loyal Clients
Social tokens could be a surprisingly new way to reward your faithful clients. Like popular businesses such as airlines, banks, hotels, and online shopping platforms, you can also create a tailored loyalty program using the tokens.
People owning your social tokens may redeem additional perks or services based on token balances. They’ll also get a sense of ownership of the service catalog that belongs to your brand.
2. Use as a Marketing Tool
You can penetrate the content or service market like never before using social tokens. These tokens let you instantly engage with your clients and help you make them feel special.
Besides enjoying word-of-mouth marketing from your loyal followers, you can grow your brand by increasing its value with new people wanting to invest in it.
3. Attract Investors
If you’re a promising entrepreneur or new brand, you can utilize the social token ecosystem for investor buy-in. Owing to blockchain technology, you can explicitly enforce the value of each token.
Brands can also predefine the basic rules such as what investors can own, how and to what extent investors can exercise their rights—and embed them within the tokens.
Should any dispute occur, you’ll not need any external agency to settle it. The reason is that autonomous contract enforcement prevents any fraudulent activities.
4. Seamless Sale of Assets
With social tokens, a brand can tokenize its tangible assets or physical products into digital avatars. Later, they can trade the assets among their loyal consumers who belong to their ecosystem.
This process doesn’t involve consumers having to spend hours or days doing paperwork, verification, and other procedures manually before getting ownership of their favorite products. As this system makes getting digital ownership of physical assets effortless, more people will become interested in owning them.
Since you’re interested in social coins, you may also be into the best NFT coins ruling the cryptosphere.