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Blockchain has brought a wave of decentralization in the digital world. It is due to its capability to eliminate the need for a central authority in finance, real estate, healthcare, and the list goes on. New blockchain-based applications help in the widespread use of the technology across various sectors. Social token development is one such newly emerging application that lets content creators or influencers connect directly with their audience. These blockchain business solutions remove service platforms, benefiting creators and their audiences.
Read on to learn more about social token development, including its working, types, benefits, and development steps.
What is a Social Token
A social token is a type of cryptocurrency developed under token standards, like Ethereum Request for Comment 20 (ERC-20). It lets creators represent their services and experiences in digital format.
Additionally, creators can charge their service price with this token. So, a social token lets creators directly monetize their work.
Some of the popular social tokens are Whale (WHALE), Global Coin Research (GCR), and Julien Bouteloup (JULIEN).
Generally, service platforms take huge chunks of money from users' income.
Here, social tokens emerge as an alternative where users can earn without restrictions. Creators like writers, musicians, and artists can issue their tokens to their audience. It gives access to exclusive content to the audience without any extra charges.
Also, Check | Decentralized Social Media | Empowering Privacy and Autonomy
The Working of Social Tokens
Blockchain developers create social tokens on top of blockchains like Ethereum.
Then, creators can showcase or trade them on social token platforms, including Rally, Roll, and BitClout.
Additionally, you can use these platforms for token development. Fans can buy the tokens from these platforms to get benefits like exclusive merchandise, videos, or other content.
The demand for these tokens will increase their value since there will be a fixed number of tokens.
Once their price increases, creators can utilize them as their compensation.
How Social Tokens are Different from Non-fungible Tokens (NFTs)
A key difference between social tokens and NFTs is that the former is tangible.
So, a social token holder can exchange their token with an identical token from the same creator.
Another difference is the value of a social token depends on the popularity or personality of a brand or creator.
On the contrary, NFTs get their value from factors like ownership history, rarity, and more.
Also, Read: NFT (Non-Fungible Tokens) | Taking the Crypto Space by Storm
Benefits of Social Token Development
The following are the benefits of developing social tokens:
- Limits intermediaries
- An additional source of revenue
- Removes third-party cuts and charges
- Anyone can distribute their social tokens
- Renders governance over the community
- Provides transparent and secure transactions
- Allows community participation and increases engagement
Types of Social Tokens
There are four types of social tokens namely, personal, community, participation, and social platform token. Here is a brief description of these tokens:
Personal Token
Personal tokens represent the digital currencies of individuals. Also known as "creator tokens," people create them to monetize themselves and offer exclusive services to their followers.
Anyone can design personal tokens to advance their careers or popularity, including athletes, celebrities, artists, and regular people.
Community Token
These tokens represent a group, community, or organization. An organization can issue its token.
Alternatively, it can opt for a third party to launch its token. Its audience can buy this token to form a community and engage with it.
Participation Token
Participation tokens come under community tokens. Token holders can use these tokens to participate in project development.
These tokens are excellent tools for companies to draw in new clients. They also help keep current clients interested in what they offer.
Social Platform Token
Platforms issue social platform tokens to enable their generation and transfer.
Users can earn these tokens by engaging in various activities on a social platform.
Steps to Launch a Social Token
You can launch your social token by following the steps below:
Build the Community
An established community can aid in securing interest in your social token. You can ask for insights from your community about how they expect your tokens to be.
They can also introduce your token to a larger audience. Thus, you have to build a community before launching your token.
Token Development
You can create your token after getting support from your community. You can use platforms like Roll or Rally for social token development.
But, these platforms only offer a generalized approach to developing tokens.
Instead, you can opt for experienced blockchain developers for a more personalized approach.
Social Token Distribution
Lastly, you can launch your social token on social token platforms. You can analyze how your fans or community react and interact with your token.
Moreover, you can make the right upgrade in your token and offer more features.
Looking for Socia Token Development Services
You need a robust community and sound tokenomics for successful social token development and launch.
Blockchain developers at Oodles Blockchain can help you with all aspects of the social token deployment process.
Our team can design a token that best satisfies your needs. Contact us today to discuss your idea.
