Content creators such as social media influencers, artists, musicians, writers and even brands are the biggest revenue drivers for media platforms today, but it’s an extremely rare occurrence when such individuals are adequately rewarded for the web traffic they generate.
In Web2, the relationship between creators, brands and their fans is governed by an intermediary platform such as Instagram, Facebook or YouTube, which takes an enormous cut of the revenue they generate. Such platforms may also exert some kind of control or censorship over what kinds of content creators can post online, further impacting their success.
It’s an inherently unfair business model that creates major headaches for creators and brands trying to generate revenue or build relationships with their fans through such channels. But as more people come to embrace Web3 technologies such as blockchain, crypto and NFTs, content creators and brands have an exciting opportunity to strengthen their relationships with their followers by introducing social and brand tokens.
These tokens are a new subset within the crypto industry. The value of these tokens is designed to mirror the popularity of the creator or brand it’s linked too, and if they’re used right, they can be an incredibly disruptive mechanism through which influencers and companies can increase their revenues and better engage with their fans.
What Are Brand and Social Tokens?
Brand and social tokens allow companies, as well as individuals such as influencers, athletes, musicians, artists and others to create their very own cryptocurrency. Like traditional crypto, these tokens are built on top of blockchains and are decentralized, similar to well-known digital assets such as Bitcoin and Ethereum.
They allow creators to monetize their content in an intriguing, and much fairer way, ensuring they can earn the bulk of the revenue and value their work generates. By acquiring fan or brand tokens, users can get access to their communities and redeem them for various products, services, access to their favorite creators and more.
Brand and social tokens are mutually beneficial. For creators, they can earn additional income by selling their tokens to customers, or else give them away to encourage greater engagement. In return, fans gain access to exclusive content and experiences. Creators who issue social tokens with exclusive benefits of this kind can increase demand for those assets, boosting the value for every token holder.
How Do They Work?
Real life examples of social tokens include athletes such as the NBA star Spencer Dinwiddie, who in 2020 tokenized his contact with the Brooklyn Nets, selling it as a collection of 90 NFTs. The initiative was designed so that Dinwiddie could access his salary sooner by raising the contract’s value upfront. NFT holders, in return, would receive payouts derived from his monthly salary.
Social and brand tokens can be used in three primary ways. The simplest use case is that fans buy tokens in return for greater access. For instance, the band Portugal. The Man, gives fans who hold a minimum of 10 tokens access to its audio archive, text and video chats with band members, and other kinds of benefits. Another artist, the rapper Lil Yachty, created a token that enables fans to receive gift boxes curated by his mother.
Tokens can also be used as a medium of exchange, enabling creators to receive tips from their fans on social media and other platforms. In addition, they may also be seen as an investment, particularly in the case of up and coming influencers and artists. Assuming the creator in question becomes more widely known, demand for their token should increase over time, significantly boosting its value – so long as the underlying tokenomics are sound.
For businesses, brand tokens can be an effective incentive to grow customer loyalty. The famous spirits brand, ATH Vodka, has partnered with the tokenization platform provider Tidepay to launch its own $ATH token that can be used in numerous ways. Customers who buy its products will earn $ATH with every purchase, and these can then be redeemed for free and discounted products, including those of other brands. ATH Vodka also offers other possibilities, such as tickets to concerts like the Strawberries and Cream music festival, trips on luxury yachts and more besides.
Tokens Are The Future Of Engagement
With brand and social tokens, entities and individuals can drive much better visibility and boost engagement with their customers and fans to new levels, resulting in higher profits and a more loyal audience than ever before.
Whether you’re a social media influencer, a rising sports star, an up and coming musician or at the head of a large marketing team, you should start investigating the possibilities of tokenization.
Credit: Source link
