What is a social token?
Social tokens, as soon as the term was put forward, some people soon said it was NFT, but NFT is just a social token issuance model. The two are actually very similar, that is, they can bring certain benefits to creators. The essential difference between the two is that social tokens issued by individuals, communities and platforms can actually be homogenized tokens. People confuse the two because social tokens are often closely related to content, music, videos, and value growth produced by creators (and social token issuers have their own communities and fan bases), and these Content is often easily NFTized.
Social tokens can be roughly divided into the following types:
Personal tokens: created by individuals and usually used for labor exchange. For example, if you spend 100 tokens to ask a designer to help you work for an hour, this is the use of personal labor to drive the value of tokens.
Community tokens: used to obtain membership and encourage members to contribute to the community. For example, through community tokens, get permission to enter the telegram group, enjoy special services, news and information, etc. Community tokens are also used to encourage in-depth participation of community members. For example, the community initiates a competition where token holders can vote to determine who will win in the end.
Platform tokens: the earliest aggregator that facilitates creators to issue and manage their own tokenized communities.
The broad meaning of social tokens is a token that is financialized in the social field, covering multiple sub-fields such as rewards, fan economy, and NFT. The emergence and rise of social tokens have brought new ways of value input to social media. A variety of token distribution models help issuers and holders capture value. The future of social protocols lies in the creation of a complete social capital market. Once the circulation of the issued tokens is large enough, the community, third parties and almost any network participant can easily exchange social tokens with each other. DOGE and SPICE are typical representatives.
The spring of social tokens
Since the beginning of the new year in 2021, social tokens have brought their own spring.
On February 4th, Musk tweeted in support of DOGE, saying that DOGE is everyone’s cryptocurrency! (Dogecoin is the people’s crypto!),There is also a picture of Elon Musk himself lifting DOGE.
Later, he expressed his love for DOGE, claiming to bring DOGE to the moon, and to bring the highest honor of cryptocurrency in the currency circle-to the Moon!
SPICE, which is also a reward concept, is released on BCH and has more advantages than DOGE. This extension of Meme culture has produced a lot of interesting gameplay. SPICE’s official website (https://spicetoken.org/) is actively cultivating users’ Meme culture, telling everyone concisely that SPICE is a network reward token, which must be shared and flowed continuously to bring more brilliance to life.
SPICE is a reward token for a social media reward platform that expresses gratitude for interesting content and moving behavior. Based on BCH’s SLP protocol, relying on SpiceBot (Spice tipping robot) services integrated in many social media such as Telegram, Twitter, Reddit, and SpiceFeed, which gathers tips, Spice encourages people to express kindness and encouragement to things around them.
Through the rewarding robot implemented in Telegram, everyone can accumulate their own “reputation”, get the approval and rewards of others, and get more SPICE, and on a tracking website provided by SPICE, you can see all the rewards The context of the token, and the ranking of the holders of the token, this to a certain extent also represents a certain honor and privilege, and to a certain extent, it can also be circulated to pay for the fee.This type of token is very suitable for running in high-efficiency, low-gas-fee chain.
Driven by the Bitcoin market and Elon Musk’s continuous preaching, DOGE surged more than 20 times from $0.004, breaking through to $0.087. It can be said that it has been singing all the way, and the total market value of DOGE has also risen to $17.5 billion.
SPICE, which is also a reward concept, rose from around $0.0032 to $0.006, with a single-day increase of 29%, and a three-day cumulative increase of 87%. It is currently stable at $0.0054, with a market value of 5.4 million U.S. dollars. It is still in the early stages of development.
The surge in social tokens has further increased people’s enthusiasm and pursuit of social tokens, and people are more willing to reward their favorite things on social media, express their kindness and encouragement!
Experiments of blockchain social products
The birth and development of social tokens are not accidental, but the urgent needs of the fan economy or creator economy for value realization in the Web3.0 era. Its core is reflected in its ability to motivate users to produce valuable operations, including token distribution and consumption methods.
Social tokens have begun to emerge, but the full potential of social tokens has not yet been fully utilized, because social tokens usually have a high degree of participation, and the stickiness between users and the platform will also increase. This is the current media And an expansion of the entertainment industry.
Through SPICE, in a social platform, community members can obtain emotional satisfaction through points and honors. At the same time, this is also an effective screening mechanism that allows people who do not belong to the community to be screened, thereby maintaining the purity of the community. Social token consumption is also completely defined by the issuer. For example, it can be used for paid subscriptions, peripheral exchanges, etc., and can also be combined with the NFT Token on the chain to make the tokens generate network value, thereby forming a complete network covering hundreds of millions of users on the entire network. Economic closed loop.
