Are Community Tokens The New Club Memberships?
|— Community tokens are the latest concept to generate cryptocurrency hype, boasting massive growth in the past six months. |
—A community token is a type of cryptocurrency that gives a holder access to a particular community based on the blockchain, with different perks and exclusive rewards available.
— Projects like Friends with Benefits, Whale, and RAC social token all offer remarkably different perks to those within the community – showing the vastness of potential opportunities and different offerings in the space.
— As the space emerges more, we could see an expansion of groups growing into massive online communities and it could go granular, where even the most niche interests have a space
Interested in community tokens but don’t quite understand the basics? We’ve got you covered.
Social tokens, or community tokens, have exploded in the past few months. And when we say exploded, we mean 400% growth-this-year-type-explosion. Yep, a big exciting boom. So, to get to grips with the emerging concept, let’s take a closer look at what a community token is, how it’s set to revolutionise digital belonging and look at some community tokens that are established – and thriving – out there.
Creating a community and developing digital belonging
Before we get into anything, let’s take a look at what a community token is.
Community tokens, at the heart of it, are created as a means to gain access to a community. They’re a type of cryptocurrency specifically designed to open the door to a particular digital group. You can think of them like membership cards, but based on the blockchain.
What the token can do, and what sort of access it offers, fully depends on the project behind it. Each social token represents a community and each community has a different value offer. For example…
FWB (Friends with Benefits)
With the growth of cryptocurrency, the rapid rise of NFTs, and the drive towards digital identity and belonging, individuals are looking at how they can connect with others online. Friends with Benefits is a social community exclusive to those holding $FWB tokens. It’s a place that has been designed for collaboration and connection online.
The community is made up of creatives and innovative thinkers and FWB gives them the platform and the tools to connect and, more importantly, belong. Holders of FWB tokens are rewarded with an inclusive, diverse community to share and discuss on private Discord servers. They host physical events where creatives can connect like local city meetups, afterparties after wider events, and coffee hangouts.
It’s a social network at the core of it, both from a URL and an IRL aspect, but with the idea that buying in (literally) makes the space more participative and those who are invested are likely to work to make it the best online place possible for everyone involved.
Then we’ve got something totally different from FWB. The Whale token was created by WhaleShark, one of the most influential collectors in the NFT space. Anyone who is part of the Whale community – or who holds Whale tokens – gets a fractional stake in WhaleShark’s collection. It might seem like an unusual concept off the bat, but Whale tokens are one of the fastest-growing social tokens in the space.
And it shows the potential for where it’s going. It proves there’s value in the tokens. Currently, we’re looking at 3,750 addresses holding $Whale with over 25,000 messages sent last month. There’s a community locked into the currency that goes beyond the potential ‘dollar value’ of the NFTs.
RAC Social Token
In September 2020, electronic music RAC released RAC token as a place for artists to connect and create. The RAC token comes with perks exclusive to holders such as access to his content and work. RAC’s main aim in the project is to develop a community where artists can create and sell in the space, while inspiring others with their work, without the need for third parties.
$RAC is a little different to other social tokens because you can’t actively buy it. Instead, it’s available to his supporters from other platforms (including Twitch and Patreon) and available for trade through the digital platform Zora.
Like other social tokens, $RAC offers exclusivity to holders – a concept which creates community and that oh-so-sweet sense of belonging.
The future forward: where can community tokens go?
Looking at the three above, it’s easy to see how one social token can introduce and offer something completely different to the next. While they’re all different, a common denominator exists in what holders experience: A sense of belonging in a community with like-minded individuals interested in similar things.
And with blockchain as the backbone, there is so much room for where this concept could go. If brands or franchises onboard this, we could be looking at something pretty amazing.
Let’s use Disney as an example. If the entertainment giant adopts social tokens, it could integrate a massive digital community and interaction platform to be designed in any way it wants. Right now, Disney has the theme parks, the retail outlets and Disney+. Imagine if Disney had a social token, let’s call it Walt Coin, it could open up a brand new way of social interaction among Disney fans across the world with both each other and the brand.
The potential perks of the proverbial Walt Coin could enable fans with enough tokens to vote on things like the design of a new Disney Princess or the name of a young Prince for example. Walt Coin could offer exclusive discounts or access to a “members only” meetup.
Community tokens and beyond
While Walt Coin doesn’t exist (…yet), thinking about it gives us just a little insight into where and how fan tokens can go. And it gives us a pretty special look at how social tokens can open the network of like-minded individuals to explore both belonging – both digitally and physically. It’s the setting of clubs, community, and connection wrapped up in a neat bundle of clever tech.
Knowledge is power – so keep on learning! If you enjoy getting to grips with crypto and blockchain, check out our School of Block video Why Social Tokens Could be the New Cool.