Social Tokens and Their Role in the Future of Media and Entertainment

Social tokens are a relatively new trend in the blockchain space, offering a new way for individuals, creators, and communities to create value and interact with their supporters. In the media and entertainment industries, this tool can reshape the way creators interact with their audiences, offering new pathways for engagement, funding, and community participation. This guide will walk you through the basics of social tokens, explaining how they work, their types, and the opportunities they bring.

What is a social token?

A social token is a type of digital asset built on blockchain technology, primarily associated with an individual, community, or brand. Unlike traditional cryptocurrencies, which focus on decentralised financial transactions, social tokens represent the value of social capital — such as influence, loyalty, or community engagement.

How social tokens work

Social tokens are typically created on blockchain platforms such as Ethereum or Solana, which provide the infrastructure for token issuance and transactions. Using platforms designed for social tokens, creators can set parameters such as the total supply of tokens, how they will be distributed, and the privileges they grant holders.

Social tokens are issued and controlled by individuals or groups, allowing them to create exclusive, value-based interactions with their audience or supporters. These tokens can be used to access special content, events, products, or services. They also create opportunities for token holders to participate in governance decisions or community-driven activities.

In essence, social tokens enable creators, influencers, or organisations to monetise their personal or collective brand while fostering a more direct and interactive relationship with their supporters. These tokens can be bought, sold, or earned based on the community's predefined rules, giving them an inherent value within the ecosystem where they operate.

Types of social tokens

Social tokens can be categorised into three main types based on their purpose and the entities they represent:

• Personal tokens. Personal tokens are issued by individuals, often creators, public figures, or influencers. These tokens allow the individual to engage with their supporters by offering special access to exclusive content, products, or services. Personal tokens might be used for fan engagement, rewards, or even to crowdfund projects.
• Community tokens. These are issued by communities or groups and are designed to create a shared economy within the community. Community tokens can be used to reward active participation, grant voting rights in community decisions, or provide access to exclusive events or content. They are particularly popular in decentralised autonomous organisations (DAOs) and online communities with a shared interest or cause.
• Brand tokens. Created by businesses or brands, these tokens are used to strengthen customer loyalty and create a deeper relationship with their audience. Brand tokens may be used for discounts, special offers, or exclusive products and services, incentivising customers to remain engaged with the brand.

The differences between social tokens and non-fungible tokens (NFT)

Although social tokens are sometimes confused with non-fungible tokens (NFTs), they are not the same thing. While both social tokens and NFTs operate on blockchain technology and can represent ownership or access to digital assets, they serve different purposes and have distinct characteristics:

• Fungibility. Social tokens are fungible, meaning each token is interchangeable with another of the same type, much like traditional currencies or cryptocurrencies. NFTs, on the other hand, are non-fungible, meaning each token represents a unique asset that cannot be directly exchanged on a one-to-one basis with another NFT.
• Purpose. Social tokens are primarily used to facilitate relationships between creators, communities, or brands and their supporters. They focus on creating a shared economy where tokens grant access, privileges, or rewards. NFTs, however, are used to represent ownership of unique digital or physical assets, such as art or collectables.
• Monetisation. Social tokens are often issued to foster ongoing engagement and build ecosystems around creators or brands, while NFTs are typically used to monetise individual digital works or assets by selling them as one-of-a-kind items.

Use cases for social tokens

Social tokens are versatile digital assets with various applications across different sectors, enabling new models of community engagement, monetisation and collaboration. Some notable use cases are:

• Content monetisation. For content creators, social tokens provide a new way to monetise their work. This model allows creators to bypass traditional platforms and engage directly with their audience.
• Fan engagement and rewards. By giving fans and community members a stake in their favourite projects or individuals, social tokens can foster deeper engagement and loyalty. Additionally, social tokens can be used as rewards for loyal followers or active participants, allowing fans to feel more involved.
• Exclusive access. Creators can issue tokens to give supporters access to premium or exclusive content, such as articles, videos, courses, or early releases, as well as private events, such as meet-and-greets or online hangouts.
• Enabling community governance. Social tokens can be used to give community members a say in decision-making processes, such as by allowing them to vote on proposals or decisions related to the community or platform.
• Customer loyalty programs. Businesses and brands can leverage social tokens to enhance customer loyalty programs. By issuing brand tokens, companies can reward customers for making purchases, participating in events, or promoting the brand on social media. These tokens can then be redeemed for discounts, exclusive products, or special services.

This is not an exhaustive list of use cases for social tokens, and as this trend continues to evolve, we can expect new and innovative use cases to emerge.

Benefits and risks of social tokens

There are several benefits to using social tokens as a way to engage with audiences and build a strong community. Some of the key advantages include:

• Direct monetisation and ownership. Social tokens enable creators and brands to monetise their content, influence, or community without relying on third-party platforms. By issuing their own tokens, creators can generate revenue directly from their supporters, providing a more personal and rewarding exchange. Token holders, in turn, gain a sense of ownership and may receive exclusive benefits in return for their support.
• Stronger community engagement. Social tokens incentivise active participation within a community. Token holders often feel more invested in the success of the individual or group behind the tokens, as their involvement can influence community decisions or unlock unique rewards.
• Enhanced loyalty programs. Businesses can use social tokens to create more dynamic and engaging loyalty programs. Unlike traditional loyalty points, social tokens can be traded, sold, or redeemed for various rewards, giving customers more flexibility and control over their engagement with the brand.
• Decentralisation and transparency. Since social tokens operate on blockchain technology, all transactions and ownership records are transparent and secure.

At the same time, social tokens also carry a number of risks:

• Regulatory uncertainty. One of the most significant risks facing social tokens is the lack of clear regulatory guidance. In many jurisdictions, it is unclear whether social tokens are considered securities, commodities, or something else entirely. This regulatory ambiguity can pose challenges for creators and token holders, as future regulations could impact how tokens are issued, traded, or taxed.
• Over-reliance on creator or community success. Social tokens are typically tied to the success and reputation of the creator, brand, or community behind them. If a creator's popularity wanes or a community fails to grow, the value of its social tokens may decrease significantly.
• Liquidity challenges. Depending on the size and activity of the social token market, liquidity may be a concern. If there's not enough demand for a specific token, holders may find it difficult to sell or trade their tokens, particularly in smaller communities.

Social tokens: platforms and tools

There are a number of tools and platforms that help both social token issuers and their audiences.

Roll

Roll is a social token platform that allows creators and communities to issue ERC-20 tokens on the Ethereum blockchain.

Coinvise

Coinvise is a decentralised platform on Ethereum that enables creators to mint social tokens and launch tokenised communities. It offers additional tools for managing token distribution and building community economies.

Mirror

It's a decentralised publishing platform that helps writers and other authors by allowing them to release NFT and social tokens.

DeSo

DeSo (Decentralised Social) is a decentralised social network that allows users to buy, sell, and trade tokens linked to creators' profiles. The platform aims to build decentralised social media where creators' content and influence are tokenised.

Future of social tokens

Despite the fact that social tokens are not yet widely recognised and adopted, they are gradually gaining traction. By enabling decentralised ownership, personalised community interaction, and new revenue streams, social tokens have the potential to redefine traditional models of content creation and distribution.

 With increasing awareness of digital assets, more creators, influencers, and brands are expected to embrace social tokens as a tool for direct engagement and monetisation. As more businesses and creators adopt social tokens, they, as well as cryptocurrency, are likely to become integrated with social media and e-commerce platforms.

The potential use cases for social tokens are expected to expand beyond content creators and influencers. New sectors such as education, sports, entertainment, and gaming are exploring how social tokens can create value in their ecosystems.

Additionally, the integration of social tokens with NFTs will likely gain traction. By linking social tokens to NFT-based digital assets, creators can offer token holders unique collectables or digital experiences, blending the utility of social tokens with the uniqueness of NFTs.