The crypto world is going through a transformational chapter that is sure to change how the internet works and how online communities interact, and social codes are at the heart of the latest reflective developments.
The growth comes at a time when transaction platforms such as Web3 are growing in popularity, especially among crypto enthusiasts.
Social tokens support the democratization of social networks by allowing brands, influencers and companies to create and monetize their online communities using blockchain technology.
Speaking to Cointelegraph about the new class of tokens, Daniel Nagy, vice president of Swarm, a decentralized data storage and distribution company, noted that social tokens have significant disruptive potential.
“If done right, they can take communities to the next level, and it’s only a matter of time before we see more innovation in this area, most likely related to DAO or GameFi, along with ideas about so-called ‘spiritual’ tokens.” ” He said.
“Right now the space is still in its infancy and experimentation is key, but as adoption grows, social tokens can be the next bridge for non-crypto users and make blockchain even more mainstream, similar to what NFTs have done. ”
He also emphasized that tokens will be particularly effective for startups that are still in the growth stage due to the need to tap into a loyal fan base.
How social icons work
Social tokens are cryptocurrencies used as a form of patronage. It is based on blockchain technology and allows creators, influencers and companies in the community to monetize their fan base. Fans who purchase social tokens typically gain access to exclusive content and product offers.
The main advantage of the social token model is that tokens can be redeemed and resold.
Social tokens are based on the same concept as inflexible tokens (NFTs) as they are based on a blockchain-based ownership model. However, they serve a different purpose. While NFTs can be used to represent real, real assets and are indestructible, social tokens are fungible, i.e. exchangeable and/or divisible. This makes it an ideal medium of exchange that can be used to monetize online communities and services.
Types of social icons
There are two main categories of social symbols: private and public.
Personal tokens are usually created by individuals to monetize some form of work and experience. The personal token ALEX, for example, is based on the life of crypto-founder Alex Magic.
The token was launched using an “initial public offering” approach to finance the move to Silicon Valley, San Francisco. Silicon Valley is home to some of the world’s top tech companies, and Musmeya’s goal was to meet potential founders of his crypto startup.
Originally, ALEX token holders had the right to vote on his life choices, such as his diet. In addition, they received part of his income under a revenue sharing agreement. Today, investors who own at least 5,000 ALEX tokens get exclusive access to the Masmej newsletter and tokens Telegram chat.
On the other hand, community symbols are meant to reward participation in a group. The tokens are designed to be used by online communities that want to market network tokens.
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Many community token applications often use online communication platforms such as Slack, Discord, and Telegram, access to which is regulated by token system smart contracts.
The SWAGG token is an example of a shared access token. It is used in the Swagg House community to spread a collaborative culture through rewards for participation.
Users who hold SWAGG tokens enjoy countless benefits, including access to Swagg Drops before they go public. They also receive Swagg grants, which are awarded to community projects, and prepare to receive Swagg rewards for sharing content.
Social icons and Web3
Social tokens are designed to improve the distribution of value, which corresponds to the contributions of participants.
This allows online communities to create motivational models that not only encourage diversity of stakeholders, but also allow participants to reward creative participants.