Most people have heard about virtual currencies, popularly known as cryptocurrencies and the blockchain technology on which they are run, but very few have heard about social tokens. Social tokens are an upcoming development in the crypto market and have the potential to disrupt traditional industries.
Social tokens are virtual assets backed by the reputation of brands, individuals, influencers, or even the community. This digital asset is on an upward trajectory, and all the signs indicate that it will be the next big thing in cryptocurrency.
Understanding how social tokens work requires knowledge of what they are and why they are on the rise: in simpler terms, a social token is a means through which internet groups, brands, and celebrities outspread their source of income beyond the usual means. Social tickets are based on the principle that a community will continually become better with time, which means that tomorrow, the community will be more valuable.
These tokens allow creators to monetize their work by establishing real-world items such as music, video, art, memes, and video clips, among others. Although they aren’t real tokens, they do utilize blockchain technology just like them.
Currently, fans and followers cannot share in the progress of an influencer, nor do they get any rewards. These fans use existing platforms such as YouTube, in order to interact with influencers and in return, social tokens can provide influencers with a way to reward their fans: with tokens that make interactions lively and valuable.
Technology is on the rise because artists, writers, creators, and musicians, among others, have learned its benefits.
Influencers adopt tokenized access, which is centered on subscriptions and active contributions by minting tokens that they offer as rewards to fans. At times, they sell the tickets to increase their earnings while engaging the followers.
Examples of Existing Social Tokens
Loomly gives people the opportunity to have a premium subscription by buying a $Loomly social token. On a premium package, they can enjoy exclusive content and access to a members-only group. Fans subscribed to premium members will have access to private content and be able to vote to help the creator make decisions.
TINGLE was created by artist Laura Driskill, who produces Autonomous Sensory Meridian Response (ASMR) videos in the sleep and relaxation niche. Fans and followers buy TINGLE for interactions and procuring merchandise.
Andre Allen Anjos, popularly known as RAC, has recently established a token created on Zoha, a platform that helps creators and brands come up with their market. The Social Token is to be circulated to fans in associated media, in order to gain access to exclusive perks and content. RAC says that the use of crypto technologies helps artists to profit from their content rather than having other platforms such as YouTube monetize it.
$ALEX drew so many people into the social currency space where its founder, Alex Masmej, was able to raise $20,000 through an Initial Coin Offering (ICO) to help him move to San Francisco to take a course in Crypto. The token has an attractive income sharing agreement where 15% of the income for three years at a maximum of $100,000 is shared amongst the token holders. Token holders have access to his network and take an active role in making decisions for him, it has a total supply of 10,000,000 tokens.
How Brands Use Tokens
Brands and communities can use tokens through transactions, holding, and earning:
– Transactions: Users transfer their social tokens directly to the brand or other users in donations.
– Holding: Users hold on to a given social token to represent their loyalty to the brand, just like loyalty cards do. Instead of being given loyalty points, they are given social tokens.
– Earning: Loyal fans can be rewarded for their support using social tokens.
How to Adopt Social Tokens
Social tokens can be distributed to customers in various ways, which is an excellent way of adopting the technology.
– Sales: awarding tokens after buying an item.
– Social media: tokens as rewards for sharing content on social media platforms.
– Promotion: giving social tokens for various purchases such as promotions and sales.
– Newsletter: social tokens as rewards for signing up for the newsletter.
– Support: tokens awarded for customers showing their patience and loyalty in using a given service or product.
After being awarded social tokens, they can redeem them as Gift Cards, Discount codes, early access, and assigned perks such as priority orders.
Tell Us Your Thoughts!
We think that social tokens are an innovative and promising idea for the crypto industry and we’re interested to know what your opinion is on them. Will you be getting involved with social tokens? Let us know in the comments below.