Social Tokens

What are Social Tokens?

Social tokens are a unique category of cryptocurrencies designed around individuals, communities, and creators on the internet. They offer a means for creators like musicians, writers, streamers, and more to shift value from centralized platforms to decentralized networks, empowering their communities and offering unique incentives to their fans.

Unlike traditional social media platforms, where creators generate value through their content but often see little in terms of monetary rewards, social tokens provide a decentralized avenue for creators to monetize their work. Whatever the type of creator, social tokens allow these individuals to extract value from their work directly and distribute it in a decentralized fashion (without intermediary) across their communities.

These tokens serve as a unique blend of community-building tools and digital assets, with their value inherently tied to the creator or community they represent. As such, they create a novel and dynamic economic system that empowers both creators and their supporters.

Web3 Social Platforms

Today's social media platforms can control what gets posted or removed, shaping what we see and think. This is a big problem that the next generation of the internet, known as Web3, aims to solve by transferring the power from centralized tech companies to the users.

In the world of Web3, social platforms are controlled by the community itself through the use of decentralized governance, true ownership of assets and trustless smart contracts. This means more freedom for everyone to share and discuss different ideas. 

Some examples of Web3 social networks include:

• Mastodon
• Nostr
• Lens Protocol
• Audius
• Mirror.xyz

How Social Tokens Work

Social Tokens essentially represent the relationship between the content creator and the fanbase. The creator or decentralized platform issues the token with the purpose of monetizing their efforts. Ownership of these tokens helps the fanbase to gain access to some of the monetized content, whether it is a podcast, song, article, or video.

For example, if a famous musician creates their own social token, the more popular their music, the more demand there will be for their token, and therefore, the more valuable the token becomes.

Types of Social Tokens

Social tokens can be categorized into two primary types, each serving a distinct purpose. The specific benefits and use cases can vary widely, depending on the goals of the creator or community and the desires of the token holders.

• Community Social Tokens: These tokens are tied to a specific group or online community. They function as a sort of digital membership card, offering special privileges and benefits within that community. For example, token holders might gain access to exclusive content, have the ability to vote on community decisions, or get special discounts on merchandise or services.
• Personal or Individual Social Tokens: Unlike community tokens, personal social tokens are centered around a single individual, typically a creator or influencer. Holding these tokens can provide a variety of benefits, such as access to exclusive content, personal interactions with the creator, or even influence over the creator's decisions.
• Social Platform Tokens: These are the native tokens of Web3 social platforms. Their purpose is to establish community ownership of the platform, as well, as democratic governance.

The Difference between Social Tokens and Content NFTs

Another similar concept in the category of Web3 social networks is the true ownership of content through NFTs. It works by tokenizing unique and specific pieces of content, such as social media posts, videos, songs, etc. This content can now be in the personal ownership of its creator or his fans, offering another option for monetization.

Social tokens, on the other hand, are fungible - meaning that one unit of the token does not differ from the other. They also do not represent the ownership of any particular piece of content but rather grant access to services and products.

Benefits and Challenges

For creators, social tokens offer a direct way to monetize their engagement, form a digital economy around their content, and retain the entirety of the profit. Fans, on the other hand, benefit from the higher-quality content and enjoy access to exclusive collectibles or other benefits by holding these tokens.

The challenges lie mainly in establishing a completely decentralized network of creators without any content curation. User adoption is also lacking because the whole concept is still too much technical and lacks user-friendliness.

The Future of Social Tokens

The future of social tokens appears promising, they illustrate a clear reaction to the current trend of centralization in the world of social networks. As we encounter censorship, content curation, and demonetization from big tech companies, the need for decentralization becomes apparent. 

Social tokens, with their capabilities of direct monetization, may be the first step towards a more fair and free future. As with any emerging technology, there are uncertainties and challenges ahead, but the potential of social tokens is undeniably vast and exciting.