Digital interaction is incentivized by individual contributions to a single community, whether by Instagram or any other platform. In the Web 2.0 era, the social media industry has been built through the input of platform participants who, in return, receive social recognition. The advent of Web 3.0 and embracing digital ownership has showcased disparities between the existing and missed financial opportunities. Social tokens are therefore expanding as an extension of the market demand and the natural step forward.
Social Tokens Are Creeping in
Whether digital or physical, communities are the locus of innovation, given their vested interest and participant unicity. However, the participatory culture in this decentralized era of digital ownership has been restructuring the role members play in creating shared digital value. According to John Street Capital, this reflects the new cohorts of technology users who give meaning to previously undervalued assets. As a result, social tokens are expanding as a sort of community fuel that incentivizes participation.
Social tokens are a community extension of the values introduced by NFTs, where digital ownership is prime. In addition, social tokens add another segment to the decentralized market as they build on top of community involvement by rewarding participation. In short, social tokens are about “the person or group behind” the community, whether it is an influencer, a musician, or a group of digital asset traders.
Moreover, community token holders benefit further by being able to access exclusive content, or merchandise, in a similar manner to how paywalls on Patreon add exclusivity. Additionally, they aim to remove technological intermediaries, as the value of Web 3.0 will continue to reside within the network, outside the reach of digital enterprises. As highlighted by Raoul Pal, “community tokens are going to change all business models.”
On The Flipside
An Autonomous Capitalist Approach
NFTs have already changed the perception of digital value as blockchain users observed a new revolution in monetizing digital presence. Non-fungibility and smart contracts are becoming embedded into Web 3.0’s digital fabric
Social media influencers have relied on the endowment of advertisers to monetize their digital business cards. Now, platforms such as BitClout, and other decentralized platforms, are independently driving fan-creators. Jesse Walden, the founder of Variant, mused that, while profit maximization is not the sole purpose of decentralized social tokens, new independent engagements could power a new digital economy. Similarly, Raoul Pal emphasizes that social community engagement will fuel a “trillion-dollar” business in the next 10 years.
As Rally highlighted, social tokens could “make money from your fans, with your fans, and for your fans.” However resounding that might seem, influencers are already making money through their followers. Yet, currencies will operate on a supply and demand dynamic, which could prompt holders to “become evangelists in order to increase their own wealth.” Thus, platforms such as BitClout and Rally really could become pillars of social interactions.
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Source: Cryptocurrency - investing.com
