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The transformative impacts of blockchain technology has disrupted numerous industries and is poised to take over large portions of the transaction economy. The most evident of these in recent times has been digital media.
Content creators such as artists, writers, musicians and social media influencers are the backbone and key drivers of revenue on all digital platforms. Without creators there would be no platform.
The connection between consumer and creator has always been one of limited potential. Previously all interactions had to be processed by an intermediary more commonly known as a third-party or middle-man. Intermediaries take a percentage of revenue for providing the creator with a platform to distribute their content.
The problems with this dependency on an intermediary are that platforms often have high take-rates(fees) cutting into the creator's earning potential as well as censorship for whatever reasons. Platforms limit the level of interaction creators can have with their supporters monetarily and socially.
This is where Social Tokens come in. Social Tokens leverage distributed ledger technology aka blockchain in order to tokenize and subsequently monetize creator output. The key to this being disintermediation. The removal of a middle-man and all of the limiting factors mentioned above.
Social Tokens are digital assets like that of Bitcoin and Ethereum. The difference being their perceived value. Whereas Bitcoin’s value is strictly monetary, a social token's value is tied to the creative influence of the artist, musician, writer, influencer etc. Social Tokens can be fungible or non-fungible meaning they can be readily interchanged such as a currency or they can be individually unique known as NFTs. For more on NFTs - NFTs - Disrupting technology or hype?
By tokenizing their personal brand as a creator this opens up the ability to monetize their fanbase/supporter ecosystem. In doing so creating a new model for monetization and supporter engagement.
A few reasons as to why a creator would want to utilize social tokens:
Current platforms have a monopoly on content, it does not belong to the creators.
Take rates vary but the most popular of platforms take from 15-100% of creator revenue.
Creators have access to a broader audience through decentralized networks. Platforms no longer have a stranglehold on their content.
Organic creation. With the freedom to create without fear of some form of censorship creators can express themselves more than ever before.
Participation is verified through blockchain technology. There is no gray area in token distribution and ownership.
For fans and supporters social tokens open new ways to support and engage with the creators. A few of the ways supporters benefit from a social token ecosystem include.
Exclusivity. Owning a creator's social token can give access to a fanbase community, special events and perks.
Supporters can benefit monetarily through creator success. By holding a social token you own a portion of the creator's output. The more value that the creator provides the more demand for the token. With a limited supply of tokens the value of the token increases. This aligns fans towards the continued success of the creator.
Crypto is agnostic and open to all. There is no gatekeeping to participation. Almost anyone, anywhere in the world can tap into the ecosystem and contribute.
Transparency is a standard. With today's platforms your data and activity is monitored 24/7 and sold off to third parties while the contributors to the ecosystem receive little if any of that revenue. In a social token ecosystem fans directly contribute without going through an extractive intermediary. All activity in a social token ecosystem is publicly visible.
Creators have the tendency to grow to their boundaries and the limits of this new monetization tool have not been realized although a few standards have emerged. Here are a few examples of how social tokens are being experimented with.
$ALEX
Alex M. A 23yr entrepreneur decided it would be an interesting idea to tokenize his life. Initially raising 20,000$ in ETH he states that holders will be able to control certain aspects of his life. This token sale is essentially a form of crowdfunding where the participants see value in Alex’s future endeavors and are taking a stake in it. Full article here
coindesk.com/markets/2020/06/30/the-man-who..
$WHALE
A social token focused on developing a community of like minded NFT collectors and backed by rare NFTs. Token holders have access to:
- A like minded community
- Exclusive NFTs
- Digital real estate
- Investment consultations
- Voting rights for WHALE community decisions
More about $WHALE gemini.com/cryptopedia/whale-crypto-nft-mar..
$FWB
A token gated community where one must hold a minimum of 60 FWB tokens in order to participate. FWB focuses on advancing the crypto cultural space. Providing a community of unique individuals that work together to fundraise for projects aligning with their values.
More on FWB coinmarketcap.com/currencies/friends-with-b..
Fictional token
Musician Joe Joey creates a $JOE token. This token is distributed to their fanbase. The money generated from the token sale is held in a publicly visible treasury wallet. Holders of $JOE have access to an exclusive membership group providing tickets and merchandise at discounted prices. Holders with more than 1000 JOE will be able to attend a private concert and a picture with Joe. Holders of 10000 JOE receive a 5% royalty on all sales and streaming income.
As you can imagine the potential for this type of revenue generating model is limitless. The creators have full control over their social engagement as well as their monetization.
The growth of blockchain technology has opened the doors for a next-generation monetization platform and has inspired many to re-imagine the way they engage with their audience. The attention market is widely becoming digitized and new forms of interaction like social tokens are paving the way towards an independent creator and consumer future. As the technology continues to mature expect creators to do what they do best and that is engage, grow and push the limits of their boundaries. It is an exciting time for creators and supporters. Will you participate?
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