Original title: "Social Tokens: The Economy of You》

Original Author: Mario Gabriele, readthegeneralist

Original Compilation: Old Yuppie

Original Compilation: Old Yuppie

Actionable Insights:

• If you only have a few minutes, here's what investors, operators, and founders should know about social tokens:"the term"social tokenMight not mean what you think.

• Typically, social tokens are thought of as a fungible currency associated with individuals. Think of football player Ronaldinho's $RON coin. This is only part of the story. The social token category includes NFTs and currencies used by groups.There are benefits to running an economy.

• Starting a social token can be an excellent way to raise capital. It can also turn followers into investors and unify a group around a common cause.

• New tools make tokenization easier. Platforms like Coinvise, P00LS, Rally, and Strata have made it easier to create social tokens. These products help creators define, distribute and manage social tokens.Liquidity may be difficult to obtain.

• A real economy needs a market. Social token projects often struggle to generate sufficient liquidity given the upfront capital required. Therefore, even popular social tokens may not be able to be traded.A composable economy will unleash innovation.

The social token movement opens the door to new financial interactions and organizational structures. We can expect creator ETFs, decentralized record labels, and even a blank promise.

In the process of designing tech satire, you might come up with an idea like this:What if everyone in the world had their own currency? (No, no, no, it's not that everyone has money, it's not a utopia.) I mean, it's like everyone has their own token or money, and other people can buy and sell it, and maybe use it to pay. If you want to play with your friends, you spend their tokens, and if they want you to help move, they buy your tokens and spend them.

Every person on earth will have shareholders, market capitalization, and maybe even a board of directors. The idea is crazy!

After a while, you dismiss the thought.

You might be thinking, this is too broad. Even in this age of social media, the age of quantification, the age of comparison -- surely no one chooses to be wiped out by the void of the human balance sheet.

Perhaps it is precisely because of this logical ladder that the existence of social tokens (we really don’t have the rigor to design everything in the way that the writer or editor behind the sci-fi drama “Black Mirror”) seems to be evidence that we are living in dark ages.

However, it might be a mistake to view social tokens as doomed and dystopian. After all, the internet is full of success stories that sound lackluster and feeble.

Just as you can use your phone to summon a stranger's car. (Alluding to Uber)

As you can sleep in a random family's spare bedroom. (alluding to Airbnb)

Just as you can swipe left and right to filter sexual partners like a wiper. (Alluding to Tinder)

Just as you turn yourself into a human advertisement for slimming tea. (Alluding to Instagram)

Just as JPEGs are really, really expensive. (Alluding to NFT)"Chris Dixon once wrote:"The next big thing started out looking like a toy". Looking at businesses like Uber, Airbnb, Tinder, Instagram, and Bored Ape Yacht Club, we can easily say,"

Next big thing sounds terrible at first.

• Social tokens may very well be the next big thing. Today's article will explain why they might even be a good thing. Here's what we'll discuss:

• What's in the name? Social tokens can take a range of forms. We outline some examples, explore different iteration approaches, and illustrate the category broadly.

• Tokens and value capture. Creators often struggle to capture the value they create on social media platforms and elsewhere. Social tokens could change this equation and offer other advantages.

• The case for investors. Consumers have driven demand for social tokens, both fungible and non-fungible varieties. These assets can serve as a new form of sponsorship as well as interesting investments.

• What does tokenization entail? Getting an economy off the ground is no easy feat, although new tools make it more accessible. However, the creator or group involved needs to take into account factors such as incentives, governance, financial management, etc.

• A strange field. We have only seen the beginnings of social tokens. If they become widespread, we could see many new industries and assets take off.

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Definition of fluid"Let's start with a small definition. Given that tokens can take many forms,"social token"creator token"and"community token"。

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creator token

• We can look at some examples in each category to better understand the (often blurred) line between the two. For example, here's a sample creator token:

• $ALEX. When startup founder Alex Masmej wanted to move from Paris to San Francisco, he found an ingenious way to fund his trip. He raised $20,000 in exchange for $ALEX tokens. Holders receive a portion of Masmej's future salary, up to $100,000. They also have access to a private Telegram group managed by Masmej."RAC"$RAC. Musician André Anjos, also known as

• , released a social token to reward fans. Backers can earn tokens by subscribing to the RAC’s Patreon or by redeeming them for the purchase of special edition tapes. Owning $RAC unlocks a Discord server, item airdrops, and other perks.

• $ish. DJ Vivie-ann Bakos, dubbed BLOND:ISH, unveiled $ISH as a way to create a broader ecosystem. Holders get early access to music, merchandise, and future NFT launches, among other rewards. Holders also get access to additional content, including remixes and edited tracks.

• $BOI. Using a $BOI unlocks an hour of designer Matthew Vernon, who provides consulting on UI/UX, front-end development, and prototyping. Vernon has worked with cryptocurrency projects such as Set and Akropolis.

$JROCK. UCLA Blues linebacker Jaylen Clark debuted $JROCK last year. Holders of the token get access to merchandise, ticket raffles, behind-the-scenes features and workout videos. Clark is the first NCAA athlete to launch a social token.

As the examples above demonstrate, value varies from project to project and can be associated with different types of individuals, although all of these relate to the output of the individual. An interesting quirk of these items is that they are ephemeral by default, thanks to a nasty thing called "death"."Some creators have embraced this from the start, so there is a natural end point to the economic models they devise. For example, in our discussion, Alex Masmej pointed out that he believes"The $ALEX token will end one day". After all, he added,"In a way, it has succeeded

Others may seek to outdo themselves by creating a wider, self-governing community, possibly benefiting from works of more enduring value. While it's not popular yet, you can imagine how this might happen. For example, if social tokens existed in 1995, a cash-strapped young British author might have launched a token to support the creation of her fantasy series. $ROWLING would give backers access to early drafts, doodles, and control of some of her estate.

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community token

• Community tokens are positioned differently, representing the economic output of a group rather than an individual. Examples include:"$FWB. Although"good friends

• What started as a casual group chat has grown into a cultural hub for cryptocurrencies. Access to this virtual Soho House and its various perks requires possession of $FWB tokens. The different levels of access are graded by holding size.

• $GCR. Research institute and investment firm, Global Coin Research, operates on its original token $GCR. Owners can access content, make research calls, and participate in events. If your holdings are large enough, you can also get private investment.

• PROOF. While tokens are generally fungible, social tokens can also take non-fungible forms. Member NFT of Kevin Rose's PROOF Collective is a social token. It grants holders access to a private community and special benefits, including future NFT offerings."$APECOIN. aim at"Push culture forward to metaverse

• , $APECOIN is the creation of Yuga Labs, makers of the Bored Ape Yacht Club. Owners of BAYC were staked $APECOIN, the governance token of an associated DAO. Holders can also earn merchandise, play games and participate in events.

$PEOPLE. In November 2021, ConstitutionDAO raised $47 million to bid for the U.S. Constitution. Contributors to the auction received $PEOPLE, a native token. While not explicitly committed, $PEOPLE is expected to be the governance token of the associated DAO. The bid failed, but $PEOPLE continues to exist."By default, community tokens seem to have a longer lifespan than creator tokens—even beyond the original wishes of those who launched them. When the ConstitutionalDAO bid failed, the core team wrote on its website that they believed". However, six months on, the Twitter account associated with the project has reached 72,000 followers, and $PEOPLE has a fully diluted market cap of $185 million. Miraculously, it's still alive and theoretically valuable -- the community isn't letting it die. Instead, it exists in a potential state of energy that could be repurposed into a new initiative — perhaps creating a TwitterDAO, for example. Time will tell if community tokens achieve the longevity of other successful organizations, but at least, they are less fragile.

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Social Tokens and Social Media"Given the range between creator and community tokens, most people might think"social token"Probably the best way to term the term is as"social media"A "cousin" of . These descriptors exist at the same height, refer to broad, distinct categories, but carry recognizable meanings. we intuitively understand"social media

meaning, although it represents a variety of products. Reddit, Twitter, Facebook, Instagram, TikTok, and others. As with social tokens, some of these iterations focus on communities (Reddit, Facebook groups), while others emphasize individuals (Twitter, TikTok)."The world of social tokens isn’t just like social media; it’s an evolution. While we may not have such a concept at first, platforms like Instagram and Twitter imply a new kind of capital: status. we may have"personal market valueFeeling uneasy, but many of us already do this - it's just denominated in follower tokens. As social media platforms have grown in importance, the blue-chip entity of this communication -- the influencer -- has foundMethods of Transforming Social Capital into Financial Capital

. This is mostly through advertising: snap a photo of yourself using this moisturizer, share it with your X number of followers, and earn Y dollars.

Other than the ads, the basic mechanics are the same. If you're a Twitter influencer selling books or courses, you're in a quasi-communication role. By converting fans into buyers, you take on the task of transferring social capital to financial capital.

As we’ll discuss later, social tokens have the potential to improve this conversion by turning fans and supporters into investors and contributors.

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become an economy

• You might ask: why would anyone or any group want to be an economy? At least, it's a complicated endeavor. After talking to several creators, investors, and platform makers, there seem to be five core reasons to tokenize:

• to raise funds

• build an investor base

• Attract attention

• Adjust the incentive mechanism within the group

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To raise funds

To raise funds"The most obvious benefit of creating a social token is that it allows you to fundraise almost out of thin air. This is especially powerful for individuals or groups who may have difficulty accessing traditional funding. Alex Masmej is an example of how social tokens can be unlocked for those who need unorthodox funds. During our interaction, Masmej noted that he"penniless", requires a"original way

Come to San Francisco. Starting $ALEX gave him the capital to make this journey and fundamentally changed his career trajectory. In his words:

I wouldn’t be able to get where I am today (founded a Paradigm-backed startup and invested through Spearhead, my first Naval-backed fund) without the $ALEX token. Back then I couldn't get funded by venture capital firms and couldn't afford to move.

All types of talent can benefit from this approach. Young musicians, struggling writers, unsponsored NCAA athletes, upstart groups chasing wild dreams -- all may have deep talent but no access to traditional financing."Among these different tokenization candidates, who is the best fit for this model? It depends on who you ask. Hugo Renaudin, founder of social token issuance platform P00LS, highlighted music artists, saying:"

Music is a natural vertical because of the utility that social tokens can bring — from behind-the-scenes tidbits to unreleased tracks and backstage passes."A group of people coming together with a common purpose, as well as the ability to innovate and execute, will create the greatest value in this field"。

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create investors

The second reason for tokenization is that, by definition, it creates an investor base. There is one significant difference between fans and investors: "skin in the game". Passive followers are motivated to become active participants by introducing a financial component. Through their contributions, they not only elevate individuals or groups they recognize, but also potentially gain their own fortune.

Creators of social token projects can rely on thousands of followers to amplify and spread the word about the cause, rather than just a few venture capitalists.

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Attract attention"One of the meta points in the section above - namely that simply owning a social token can attract attention, even beyond the efforts of aligned investors. Kyle Samani of Multicoin Capital pointed out that this is a key distinction."With liquid prices, social tokens themselves will be a huge source of free PR."The project may end up benefiting even with a drop in value; Samani added:"。

all news is good news

Will such reports help the NFT market? What about the stories outlining the decline of a certain project? While some accusations may cause actual harm (e.g. fraud), the memorability of cryptoassets means the value of dominating the news cycle. With tokens, this is much easier.

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Adjust incentivesOne of the most compelling benefits of tokenization is that it does what an economy should do: align incentives around desirable activities. This goes a step further than just having investors who will spread your message. In fact, participating investors can become dedicated contributors, not only evangelizing, but building."Samani describes social tokens as"。A Spotlight on Fan Self-Organization for Financial Investing

In our exchange, Global Coin Research (GCR) outlined how their token is creating docking:

[GCR has] tight-knit incentives between members and the core team. For example, we pay the core team 50% to 100% in $GCR tokens. We also reward members who contribute their research and scout investment opportunities...$GCR. With one asset, you can tie everyone's attention and financial goals together to ensure optimal results and execution."Once you determine the community fit of your product, the economy starts building itself."

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capture value

There is good reason to believe that this is a real structural advantage. As mentioned above, social tokens turn buyers into investors and contributors, a meaningful shift that reframes one’s contribution. Willingness to pay appears to increase if there is a liquid market and promises of rewards. To understand this better, we have to look more closely at the value that social token investors get.

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investor value

What makes social tokens valuable? The answer varies by project. Perhaps most important to such an assessment is the buyer's perspective: are they buying to support a creator or to earn something in return? Is buying tokens a form of sponsorship or an investment?Opinions vary. Hugo Renaudin of P00Ls said,"The biggest misconception about social tokens is that they are"。Tools where people invest in creators"He added that the ideais wrong for many reasons."Because social tokens are ecosystem tokens, not investment vehicles. The motive is not to earn a return.Others view the issue explicitly from a financial perspective,"Samani pointed out that the main uses of social tokens are"。

While not mutually exclusive, using both frameworks - sponsorship and investment - illuminates the value behind the token. Social tokens may also offer advantages beyond these categories.

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sponsor

Social tokens can operate as a new form of sponsorship. Instead of tipping your favorite musician or cartoonist, you can choose to buy their social tokens. In addition to purely altruistic motives, you might motivate yourself through benefits. Often, these look similar to the perks creators and communities offer through platforms like Patreon: proximity to creators, extra content, prizes, and private groups."Hugo Renaudin of P00LS summarizes these advantages as"access and exclusivity". He added:"The value of fans is the key to social tokens: tokens need to have sentimental value

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invest

invest

Social tokens can be used as investments. As it happens, I have a little experience with this subject. In March 2021, I used Mirror to crowdfund the creation of an S-1 report on Coinbase. Contributors get $GENERALIST in exchange. In total we raised 20 ETH.

This is a tiny example of how investing in social tokens can pay off. Creators can return a percentage of future earnings or product sales to holders. (As we'll discuss, doing so can have regulatory risks.) As we mentioned, Alex Masmej pays holders via an ISA model, directing part of his salary to the owners of $ALEX. PROOF Collective's "reverse drops" do something similar. Holders of PROOF NFTs can obtain special opportunities to purchase valuable works of art at low prices. While this may seem like sponsorship -- after all, it is"access"access

--but it functions like a dividend. Collectors pay a nominal fee to participate and get NFTs of potentially greater value.

In the future, we may see many creative combinations between revenue, fungible tokens, and NFTs. Samani commented on the matter:

I expect NFTs and social tokens to intertwine. For example, after selling some NFTs, I would expect creators to pass some percentage of those sales on to holders of social tokens or affiliated treasuries of social tokens."Finally, even if social tokens are not tied to future cash flows, they can still serve as investments. NFTs are often compared to visual art, and even fungible tokens may have artistic value, just like "antique coins." In fact, when describing the value $ALEX conveys today, Masmej noted that it"secondary title

other

other

Some benefits straddle these two categories. For example, some tokens grant the holder the right to use a certain service. The $BOI token, minted by designer Matthew Vernon, fits this bill. Every $BOI can get Vernon for one hour. It's not strictly a sponsorship or an investment, but draws traits from both camps."Social capital is another ambiguous motivation. Coinvise, a platform for creating social tokens, points to this as a reliable source of value, stating:"One of the secondary values ​​of owning a token is to signal reputation or ownership.

Coinvise added:

In addition to sharing economy upside and long-term consistency, tokens quantify the depth of relationships between individuals, making social graphs more fair and measurable, and most importantly, enabling better coordination mechanisms - creating games Optimized incentives/rewards to build a programmable digital economy."$FWB"The ability to be flexible is arguably the strongest draw for many social token investments. In some internet circles, CryptoPunk's profile photo or inclusion in his Twitter biography

, have an undeniable influence. In the vast majority of online life, ownership is a form of identity."Career capital might also fall into this category. Although"access rightOften seen as a patron perk, but when used in the context of a true DAO, it means a lot more. In this case, token holders are not just entering a group chat with their favorite celebrity, but joining a team. If they want, they can be a true contributor, using their skills to benefit the group. In doing so, holders can improve their skills, gain knowledge, and even earn salaries in the native token. It's an interaction,

At one point in time it is superstition, at another point in time it is investment."Renaundin said: People can earn tokens by working for the benefit of the community, and then use them to get more things from that community. He added:". At the end of the day, the reason for collecting social tokens is to be part of the economy - a crypto cosmic city, a web3 Paris - and all that comes from it.

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Once you're convinced it's time to tokenize, the hard work begins. Creating an economy is no easy task, even if new tools have made it significantly easier to manage. Let's go through the steps:

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Step One: Build a Community

Set up a Discord or Telegram and start making plans, getting started. You'll refine your ideas and ensure the project has real community DNA from the start. Established creators may have an advantage as they may have a small circle of fans that can translate into a pre-token community. In this case, the trick is to find those in the group who are interested in being part of the new experiment without alienating existing supporters.

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Step Two: Design Your Economic Model

Once the community is formed, you can start working on issuing tokens. Over the past few years, several platforms have emerged to make building a social economy easier. Coinvise, P00LS, Rally, Roll, Strata Protocol, and other platforms simplify the setup process with different approaches and feature sets."Through one of these platforms, you can define the details of your economic model, including the value it communicates and the behavior it incentivizes. Creators also need to consider the project's"--Who owns what and why. Projects often choose to reward early participants and supporters, carve out more pieces for the core team and the wider community. Vesting of tokens usually exists over an extended period of time.

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Step Three: Distribute Tokens

The platforms mentioned above make it easy to distribute tokens to groups you define. In addition to distributing tokens to team members and early contributors, you'll want to dedicate some tokens to the community's treasury."You may use a variety of financial instruments and platforms to manage this treasury, including Llama, Parcel, Gnosis, and Coinshift. we are at"These platforms are described in more detail in . Ultimately, the main goal is to keep funds safe, increase the value held, and simplify the payment process for contributors.

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One of the trickiest parts of creating a token is giving it liquidity. An actual economy needs to be able to buy and sell assets, but for social token projects, making this a reality is costly. For example, in order to launch a liquidity pool on Uniswap or Sushiswap, creators must deposit a significant portion of their native token and an equal amount of their paired token. For example, if you wanted to start a pool with $50,000 worth of GENERALIST, you would have to put in an equal amount of ETH or USDC. As we'll discuss later, there are serious challenges to doing so.

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Running an economy is theoretically an endless endeavor. The work certainly doesn't stop once tokens are distributed and liquidity is provided. Throughout the life of a project, creators and contributors must seek to add value to the project, tinkering with incentives and organizational structures.

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Web3 "Weimar"

While social token creators don't have to deal with the same complexities as the real-world economy, they must balance the same version of the challenge. The technological novelty of this market creates additional problems. We will outline the main risks and difficulties of these projects.

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market movement

Cryptocurrencies are a highly volatile asset class. Social tokens can be particularly vulnerable because they are often backed by less tangible value, have shorter track records, and have shallower liquidity, making the market less robust.

This example illustrates the importance of sound financial management. Projects must balance their holdings and ensure they can survive the crypto winter. If they don't, creators may be forced to artificially produce new"Token"-- whether it's an NFT or a fungible token -- or otherwise fiddling with the economic engine. Just like any other economy, social tokens must weather market volatility.

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difficult organizational work

While launching a social token is undoubtedly easier today, it is still a complex process. In fact, simply owning a token complicates mundane activities in many ways. Renaudin commented on this fact, saying:

The hardest part is getting the tokens into everything the creators are already doing. Incorporate tokens into promotional strategies for new albums, merchandise collections, etc. So it's really about organizing the work and making sure that every time there's new content or product, there's a stake for the token holders."He added,"But getting to this point seems to be a considerable effort.

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shallow liquidity"As mentioned earlier, maintaining liquidity is difficult for social economies. To solve this problem, projects often start"Liquidity Mining

program, effectively distributing rewards to those who add tokens to the pool. While this can alleviate liquidity problems somewhat, it is not a panacea."The team at Coinvise noted,"Maintaining deep mobility can be quite challenging". This is especially true given that liquidity miners tend to be haphazard as to which pool to move to provides the best rewards."Creating a liquidity pool on Uniswap can be simple,"Coinvise pointed out,"

But it might look like it's renting liquidity."Coinvise pointed out,"is a potential solution. These projects have found innovative, though possibly unsustainable, ways to channel liquidity. At the very least, they have illustrated that a rich design market still exists - and further innovations may be needed to help social tokens become truly liquid markets.

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Obscure regulation"Howey test decides"investment contract

Whether or not it has occurred is a sign of a security offering. The test relies on four criteria -- all of which must be met:

An investment of money must have occurred

The money must be invested in a common enterprise

It must be done with the expectation of making a profit

This profit must be the result of the efforts of others"Social tokens are in murky territory. The U.S. Securities and Exchange Commission has cracked down on initial coin offerings (ICOs) for meeting standards for selling unregistered securities. At the same time, it is considered"medium of exchange

Tokens such as Bitcoin do not meet the test. Which of these two categories do social tokens fall into?"I am not a lawyer. (In fact, I spent most of my early career trying to avoid becoming a lawyer). However, it appears that social tokens certainly meet at least two criteria: the investment of funds takes place in what looks like"Ordinary enterprise"on the project. Some who do this are of course hoping to make a profit. Does it come from"others

The job is a trickier area. The SEC’s stance suggests that the more decentralized it is, the less likely a token will be considered a security."Kyle Samani pointed out,"is a factor holding back the social token space. In his view, this uncertainty may limit the number of established creators entering the field."He said:"He said:"Given the inherent risks surrounding regulation, existing celebrities are unlikely to be the heralds of these dynamics. He said:"

In order to take off properly, social tokens may need more guidance from the SEC.

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become money"Hugo Renaudin says:"No one, including me, wants to have a price tag next to their name. But for some creators, that’s what social tokens offer. When I asked Alex Masmej if running $ALEX was a psychological burden, he said:"Nope - it's become part of my life.

He went on to say:"Capitalism is real and the world is chaos, whether you like it or not. Is it better than traditional social networking"like

The economy is more worrying? I think that if running your economy dramatically improves your life or career prospects, it might be worth the extra mental price (we'll all get used to it anyway).

Perhaps, this is where we are going. Attaching a currency to ourselves—becoming money—still feels scary today, but, over time, we may come to see it as synonymous with online influence."Of course, the burden is lessened when a group manages the social token. Coinvise said some groups have begun to create structured downtime to prevent burnout."

It's very popular now for communities to adopt 'off-seasons', where people purposefully log off and relax, rather than an 'always-on' economy."Ultimately, as with any large-scale project, managing a social token is hard work, but it can also be fulfilling."This is [taxation]!"But it's so much fun."

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Composable Economies"Perhaps the most exciting part of the social token movement is what can be done with these economies. Since these projects exist on-chain, they can interoperate with the rest of the cryptocurrency ecosystem. These"If successful, new financial instruments and organizations will be ushered in.

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new financial instrument

Here's a thought experiment: imagine you're an investor who's bullish on the maker economy. You have $1 million and no special access to private markets. Where will you invest?

Perhaps the best bet is Google. As the owner of YouTube, it provides at least some exposure to one of the most powerful platforms for creators in the world. Of course, you can also spread your bets among the likes of Meta, Spotify, Amazon (Twitch!), and Apple (music and podcasts).

These are all reasonable bets and may prove to be very shrewd, but none of them are truly direct investments in the creator economy movement. Each of these businesses is in some way influenced by other properties or, in Spotify's case, by its relationship with traditional labels."Social tokens may offer an alternative in maturity. If they become widespread enough, you could imagine a project creating a creator economy ETF featuring a basket of creator coins. As the space takes off, investors will have direct exposure to the rise of creators themselves. Over time, this may split into more targeted indices. You can set up ETFs for YouTubers, Twitch streamers, Substack writers, and OnlyFans personalities. You can further segment and target specific trends by creating something like"YouTube-Mukbang Index

s things. While absurd from one perspective, the formation of this asset class not only brings capital to creators, but enables those who understand the trends of the times to benefit from their insights.

The same principle applies to community tokens. An easy way to gain exposure to the social DAO movement would undoubtedly be welcome. (Ultimately, Seed Club’s token, $CLUB, could be a neat proxy given the accelerator’s exposure to new projects.)"Other financial instruments are also possible, including the dreaded short. as in"Multicoin: How to Become a Rebel

As discussed in , bears perform an important market function, putting pressure on scams and Ponzi schemes. They may provide a similar utility in the social token space, allowing investors to squeeze out bad actors and fraudsters. For example, there could be real value (and financial gain) in shorting a YouTuber like Jake Paul. Despite his long history of scams, he still retains a large following and is the co-founder of a rolling fund on AngelList.

Of course, if running the economy under the best of times is a psychological burden, shorting could make it much worse. We already live in a culture where it is easy to "eliminate" disagreement. Using this kind of reflexive anger as a financial weapon can be extremely destructive, driving those we disagree with into economic ruin. Furthermore, betting on success is hardly a constructive contrarian position given the long-term nature of most social token projects."Terra: The Moon Also Rises ", we outline how the Anchor Protocol can be repurposed as a form of payment. Instead of pre-purchasing services, projects like Pylon allow customers to stake tokens on products and get paid back through Anchor's 18% return."to pay"to pay

. Essentially, users keep their principal while paying interest.

The social economy seems well suited for such a mechanism. Instead of taking huge risks to buy NFTs or tokens, contributors can stake capital and provide interest to the project. Not only is this a potentially evergreen revenue stream (at least as long as users stick around and rates persist), but it offers an easy way out for contributors -- for example, instead of selling NFTs, you can simply unwind your holdings stock. This exit mechanism could be useful for economies that thrive on docking.

Finally, social tokens will almost certainly be used as collateral. Renaudin emphasized this point, saying:

In the future, we may secure real-world assets with currencies tied to potential NBA teams, revenue streams for musicians, and rights to social clubs.

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Just as social tokens unlock innovative financial interactions, they may herald new organizations. Once creators' economic activities live on the blockchain, those who manage their capital and careers may shift.

exist"Multicoin: In Search of Outliers "exist", we outline the company’s commitment to social tokens"Decentralized record company

interest of. When asked what new structures might emerge in the socio-economy, Renaudin responded with similar thoughts:

A decentralized entertainment industry! If all music artists have tokens, how should tokens work towards creating a fairer ownership model? It's a similar question for other creative industries that deal with inequalities around ownership and value.

Crypto-native publishing houses, podcast studios, and talent management firms could all be formed to serve the world of social tokens. Industries without creative, rent-collecting gatekeepers may be particularly vulnerable. The next JK Rowling might not only have a token, but it might be managed by the equivalent of RandomHouseDAO.