Social tokens can help you build a close-knit community. Read on for an overview of how they work!
Social tokens are shaking up the digital currency market, helping creators and companies establish strong connections with their communities. These tokens enable community members to make decisions about the content they receive and build a sense of ownership and community among its users.
From singers like David Bowie to the news platform CoinDesk, many have tried their hands at using social tokens to engage with their communities. As of September 2022, social tokens had reached a market capitalization of US$122 million. If you are curious about the tokens that make up this market, here is a list of the top social tokens, their utility and how their communities function.
Rally (RLY)
Rally is an Ethereum network-based social platform that creators (social media personalities, sportspersons and brands) can use to launch their own social tokens. These tokens are customizable, and creators can use them to provide unique benefits to their communities, such as exclusive Discord chats with the creator and targeted loyalty programs.
The best part of the Rally network is that it simplifies the process of creating and monitoring tokens. Creators get real-time analytics and records of the on-chain activity of their tokens on their Rally dashboard. The platform is also mindful of the interests of the creator communities. Information about the number of token holders and tokens in circulation is freely available for everyone to view so that buyers can evaluate a creator token before investing in it.
Rally’s native cryptocurrency, RLY, also serves as a reserve currency for all social tokens on the platform. It enables community members to trade between different creator tokens on the platform and exchange a creator’s token for RLY.
Some of the popular creators on the platform are American actress Felicia Day ($GEEX which has a community of 2,316 supporters), author Joe Pulizzi ($TILT which has a community of 2,243 supporters) and American football player Brandon Powell ($BP4 which has a community of 5,114 supporters). As of writing this article, Rally has a market capitalization of US$64 million.
Whale ($WHALE)
$WHALE is a social token launched in 2020 by the non-fungible token (NFT) collector WhaleShark, who had been collecting rare NFTs since 2019. What is particularly interesting about this social token is that it is backed by the creator’s personal collection of NFTs.
This collection—called “The Vault”—is a publicly audited collection of 3,600 NFTs (as of writing this article) on the NFT marketplace OpenSea. Some of the NFTs in the collection include BioNet Baby (which was last sold for 50 ETH) and Avastar #0 (last sold for 40 WETH). As per the asset valuation conducted by nonfungible.com in December 2021, The Vault holds a value of US$159 million.
The token has a community of 25,000 holders that makes decisions about which NFTs to buy and sell and how to structure the WHALE monthly distribution budget. Members also get benefits such as renting NFTs from The Vault, exclusive $WHALE airdrops and NFT airdrops.
The $WHALE token has a maximum supply of ten million and is allocated as follows: 10% to the creator and their team, 10% is set aside for private sale, 42.6% is distributed to the community (at a rate of 40,000 $WHALE per month) and 37.4% is kept in the WHALE Foundation reserve. As of writing this article, Whale has a market cap of US$6.9 million.
Steem (STEEM)
Steem is a social blockchain that facilitates the creation of blockchain-based social media platforms (like the blogging website Steemit and the streaming platform Dlive) where content creators are paid in the blockchain’s native token STEEM. The Steem blockchain uses a delegated proof-of-stake (DPoS) consensus mechanism wherein those using the Steem network vote and elect validators for transactions.
In Steem’s DPoS system, 10% of the reward is relegated to the validators and 75% of the reward for staking goes to community members. This includes people who create, moderate and interact with the content on the platforms. The more active a creator’s audience is, the greater the rewards they earn.
Steem also provides enterprising creators and companies with an opportunity to build reward-centric social platforms using its blockchain technology. This monetization model encourages community participation, boosting exposure and rewards for creators with an active audience. As of writing this article, Steem has a market cap of US$97 million.
To conclude, social tokens have established themselves as a viable avenue for creators and companies to build their own communities and establish direct connections with their supporters. While all three tokens and the communities they support have diverse uses, it is important to remember that social tokens, just like any other cryptocurrency, are subject to market volatility. Make sure to do some additional research before investing in any of these tokens or engaging with these communities.
This article is meant for informational purposes only. Please make investment decisions based on your own discretion.
Also read:
- What Is the Point of Social Tokens?
- The Rise of the Creator Economy
- Top 5 Risks of Staking Cryptocurrencies
- What Is NFT Renting?
Header image courtesy of Unsplash
