Everyone has probably heard about cryptocurrency, blockchain, and the trends that are emerging in the DeFi space. One such upcoming trend name is Social Tokens. So let's get to know what they are and why are they on the rise?
What Are Social Tokens?
Social tokens are digital assets that are backed by an individual or a community. They are the true product of Web 3.0 because they directly connect creators and consumers of content. They are not similar to celebrity bonds because there is no intermediary in the transaction. The main goal of social tokens is to create new opportunities for creators and communities to monetize their content.
Furthermore, they are also known as personal tokens, community coins, and creator coins which are decentralized and secured by blockchain and built on the same model as common cryptocurrencies like Ethereum and Bitcoin.
Potential of Social Tokens
In this digital world, content creators like musicians, artists, writers, and social influencers are true heroes and revenue generators for media. But, on the other hand, these creators don't get adequate rewards for their efforts. Some third-party social media apps, such as Instagram, make an intermediate connection between creator and their fans, but when it comes to sharing revenue, it exerts artistic control on the creator. Thus, to overcome this exploitation and fully reward the creators for their efforts to make content, the usage of social tokens is the key. Moreover, content creators can use social tokens to build their own economy.
How Do They Work?
Social tokens are just like cryptocurrency. They are used to disrupt this long-standing model. Content creators can use them in two ways:
They can build their fan community and reward their fans with their social tokens. However, as the supply is limited, and if the demand for the token increases, its value will surge. Due to this, the creator can use it as a form of compensation.
Fans can also buy these tokens and, in return, can achieve some benefits such as exclusive content in video, writing, etc.
To conclude, social tokens are a product of web3.0, and they are decentralized as well as secured, just like cryptocurrencies. Also, it can be utilized by creators to monetize their content and expand their community.
Disclaimer: This is a guest post written by Lakshit Madaan. The views and opinions expressed are solely those of the original authors. These views and opinions do not necessarily reflect the views of the GazeTV Foundation.
Upcoming in May / June 2022, GazeTV is heading to Phase 2 "Gazer-lization", turning into an all-rounded social entertainment platform. GAZE will become the social token for content creators and audiences to interact and support each other in the Gazers community.
For further details about Gazer-lization new features, please visit here.