It is about time you meet like-minded people and monetize yourself in decentralized space. Social tokens and DAOs are ready to take over.
Imagine a digital space for like-minded people with similar tastes, aspirations and admirations who come together to either pursue art, make products and provide services for a common cause, all while accruing a reward mechanism that they control. The description would sound utopian 10 years back, but with blockchain and cryptocurrency disrupting our lives at an unimaginable pace, the concept has already come to reality.
- Multiple benefits of social tokens over NFTs fuel popularity among DeFi investors.
- Soon-to-be-billion-dollar industry, social tokens garnering collective trust among crypto communities.
- Vibing with the like-minded people can get you access into the exclusive world of benefits.
There is even a name for such unions- DAO or Decentralized Autonomous Organizations. And with the advent of DAOs, there is another game changer emerging in the crypto world- social tokens, that are sure to change the way the world works for many. So what exactly are we talking about? Stay tuned –
What’s this new disruption monster taking shape in crypto world?
Whether you believed in the concept of NFTs and their utility or not, it still made overnight millionaires. In the case of social tokens, however, the use case makes a lot of sense and don’t be surprised if it takes over the world of marketing in the decades to come.
So what are social tokens? In the simplest of language, for the like-minded people working together on DAOs, social tokens are the incentive vehicle. You can think of it as the digital currency of DAOs. This digital currency is used by the decentralized communities to monetize the members, which can later be exchanged for other cryptocurrencies or perks, as decided by the communities.
So what can these social tokens get for the members? First, they can earn monetary remuneration in terms of decentralized currency. Second, they can earn perks as consented by their community which can be anything from early access to NFTs to voting rights while drafting strategic decisions.
Social tokens are not very different from general cryptocurrencies. However, the only difference that lies here is that the leaders of DAOs would have power over how they distribute these tokens.
But what is the purpose?
The idea here is to create rock-solid communities that provide multiple lucrative benefits to its members in order to tempt outsiders to pay for access. In a nutshell- to create a virtual economy that is exclusive to the community members only. The more social tokens you have in these DAOs, the better will be your rewards in terms of cryptocurrencies, member-only content and voting rights. The major emphasis here would be on the members who monetize their offering to help the community succeed, almost like equity offered to early employees of the startups.
But how can one land into one of these communities? You need to “vibe” with other members. DAOs is more about sharing the same passion, goals and cultural admirations, than creating products and services.
Social Tokens are more appealing than NFTs
While the popularity of Non-fungible Tokens is on a roll, Social Tokens have some obvious edge. To begin with, Social Tokens are much easier to trade than NFTs. Unlike NFTs, the holders of social tokens need not wait for an interested buyer. They can simply exchange it with any cryptocurrency at any given time.
Second, and the biggest factor contributing to the popularity of Social Tokens, is that one doesn’t need capital to kick start the journey. You need money to buy NFT, however, in the case of social tokens, all you need is to add some value to the DAOs through your products, service or idea and you shall be rewarded.
Third, Social Tokens make its holder feel more inclusive, cultivating a sense of ownership while nurturing trust. NFTs are more like a tool to showcase status and a way to be the part of communities that are more elite, while Social Tokens generate a sense of participation in the community.
With the base intent of developing and perpetuating trust and collaboration for token holders to carry out ambitious projects, DAOs and Social Tokens can take over the crypto world soon. No wonder analysts are predicting for it to soon hit the billion-dollar graph.