Anyone can put in some work and invest their time in an online community and be rewarded with social tokens. Token holders don't have to wait until someone wants to buy their tokens to sell them they can simply exchange them for another cryptocurrency at any time, which makes their value less hypothetical than an NFT's.įinally, unlike NFTs, there's no need to get capital to jump into the social token revolution. On top of the advantages that social tokens provide within a decentralized community, they are also more easy to trade than NFTs. It's a much fairer distribution of power than traditional startup models. Even if you join at a later stage, you'll be rewarded for your work. Unlike a startup, you don't need to be one of the first contributors to have a decent amount of your community's token. Social tokens also allow community leaders to reward contributors fairly. Think of it like receiving equity as an early employee of a startup. Instead of simply getting paid with an existing cryptocurrency (similar to a salary), contributors are incentivized to help the organization succeed, as the value of their tokens - directly correlated to the success of the project - can gain an almost infinite value. Contributors who help the community grow by contributing to the different projects the DAO is building are given shares, or social tokens, with the aim of creating such an ambitious and robust community and projects that people are keen to buy the token to gain access to membership-only content, perks, and voting power in the community. The goal of creating a social token is to build a virtual economy where early believers and contributors can share the upsides. But the benefit of creating a social token is to give community leaders the power over the distribution of the token. Social tokens are cryptocurrencies like any other regular cryptocurrency. All DAOs, even socially-focused ones, are building different products with different ways to organize their work, and social tokens are how they can accomplish these goals. There are many types of DAOs, some focused on building products for the crypto world and some focused on social networking. In DAOs, culture comes first, products and projects come second.
It's first and foremost about culture, about vibing together and creating what you've always wanted to create. This digital currency can then be redeemed in exchange for other cryptocurrencies or special perks within the community the token is associated with, such as access to token-gated content, the right to vote on future strategic decisions, or early access to community NFTs.ĭAOs are firstly virtual places where people passionate about the same things decide to join forces to hang out and achieve high-ambition goals. Put simply, social tokens are a way to incentivize anyone to work toward joint projects in a DAO, a crypto-based decentralized community, in exchange for a digital currency. But while NFTs still draw skeptics, a new trend has emerged that could provide more utility than NFTs and has the potential to completely reinvent the future of work and the way we collaborate: social tokens. They're treated as a flight of fancy with little practical use. Short for non-fungible tokens, NFT sales have burst into the media limelight, and so far this year, NFT sales have totaled more than $13 billion.ĭespite the surge in interest, many people still don't get the point of NFTs. Since last year, the NFT space has boomed. The thoughts expressed are those of the author.
0 kommentar(er)
