What are Social Tokens?Social Tokens are tokens issued by individuals or communities as reward for performing certain tasks on a specified platform. For example, a musician or artist can issue social tokens via smart contracts in an effort to bypass middlemen like YouTube. In other instances, you may read an article or comment in a social media group and earn some tokens.
These tokens can be swapped for fiat or ETH since most Social Tokens are built on the ERC-20 network. You can also use Social Tokens for fundraising, purchasing goods and services and even in the Non-Fungible Token (NFT) industry.
Social Tokens and NFTsSocial Tokens are extremely hot in the NFT space right now. Social Tokens are built around an “ownership economy” principle. This means that content creators can monetize their work as NFTs and supporters can buy them using the social token. In some cases, holders of social tokens get first access to exclusive NFTs and other content. Content creators who mint their own tokens can also sell them for additional revenue.
An example is Portuguese-American musician and record producer, RAC who announced a token created with the Zora platform. With the token, subscribers on Zora can unlock exclusive content, digital merchandise and gain access to various group chats.
RAC has created more than 200 remixes in the rock, dance and electronica music genres. RAC aka André Allen Anjos, released 100 cassette tapes in May 2020 that one could only purchase with his personal crypto token. One tape that is worth $20 sold for nearly $13 000! His first audiovisual NFT, a 30-second art loop, fetched $26 000 in October 2020. All this was made possible by the use of smart contracts within the NFT. Every time the art work was sold, RAC will receive a 10% royalty fee.
Why will Social Tokens be the next big thing?Well-known Bitcoin bull Raoul Pal is optimistic about Social Tokens and calls them the “next big thing” for the crypto industry. Pal called Social Tokens the biggest thing he’s ever seen and said it will change all business models. Pal used Disney as an example by saying that should Disney adopt Social Tokens, fans will belong to communities of interest like Star Wars or Pirates of the Caribbean etc.
Pal said the goal of Social Tokens should be to give benefits to the community such as discounted tickets, special merchandise, access to NFTs, chat with the artist and meet and greet. In essence, the community should be able to connect and bond with the influencer/artist.