Original compilation: Frank, Foresight News
Original compilation: Frank, Foresight News
This isn’t the first time Forefront has looked back at the yearly evolution of the tokenized community track in the crypto industry, but there’s no doubt that things have changed a lot in 2022.
Forefront's first report, "2020 Social Token Year in Reviewexplores the emerging landscape of crypto-social, covering the origin of personal tokens through tokenized time (Matthew Vernon's "Boi"), the current Showtime founder's initial ALEX offering, the early development of RAC, how NFTs can be used as a means of payment ( Token WHALE), permissioned access (CollabLand) and more...
You must know that on December 28, 2020, there were not more than a few dozen social tokens on Ethereum, with a total of about 7,000 holders and a total market value of 81 million US dollars. A celebration of what has been achieved, but also a celebration of the opportunity before us to bring the tokenized community to the masses.
From social tokens to community tokens
At the end of 2020, just before the release of Forefront's first report, Forefront began to transform into a "social token home", gradually aggregating everything from creator tokens to NFT collector tokens and all social tokens.
As NFT began to rise, new communities began to emerge, and soonAll social tokens are clearly starting to move in the direction of community tokens — a shift from individual creation to collective creation.
It is precisely because of such changes that in July 2021, more than 6 months after the original social token annual review report was issued, the Forefront community felt that it was necessary to revisit the light speed development trend in this field.
and
and2021 ReportEmphasizing the rise of seasons belonging to communities such as FWB and Forefront, Roll Hack, Rally, and Bitclout have made waves one after another, Bankless DAO has also made its debut, and communities such as Cabin, Krause House, and Songcamp have also begun to catch fire.
Entering 2022, people are justifiably excited. Everyone thinks that the "Year of the DAO" is coming, and this is also true to some extent-2022 is the year that sustainable models for the community slowly start to emerge, as new community experiments learn from old mistakes and the OG community begins to adapt to changing tides.
2022 is the year the tokenized community is truly born.
The OG community continues to mature
The crypto ecosystem's perception of the tokenized community has changed over the past few years, the first of which was between late 2020 and 2021, whenAny community with a social token falls within the definition of a "tokenized community".
But as these communities grew, and contributors figured out what really made the tokens valuable and necessary, the team at Forefront refined the definition of a tokenized community to include those that use governance tokens to distribute tokens to community projects. On-chain community of funds.
This new definition is both illustrative and reflective of the actual situation. When we originally published last March ourArticles about the tokenized communityAt the time, only a few communities fell within this seemingly rigid definition.
Today, even "OG" tokenized communities like FWB, Forefront, Bankless, etc. are slowly shifting towards a sustainable economic model focused on funding community projects, which in many ways is the definition that all projects aspire to - because This represents a world of sustainable, collaborative online communities.
While it’s easier than ever to launch and participate in a DAO on-chain, community engagement remains a major concern — every tokenized community continues to struggle to achieve quorum on certain proposals, attract talented Builders and creators, and build sustainable development momentum for them.
At the same time, some communities, such as Lil Nouns, found themselves with very large and diverse token holder bases, but with low community engagement due to a lack of centralized vision and mission.
The purpose of Forefront to establish Pulse is to give the community the opportunity to communicate collectively on the chain around their mission, goals, values and interests.
With Web3 social on the rise and products like Farcaster, Lens, Yup, etc. taking off in 2022, it's clear that 2023 will be the year the tokenized community figures out the economic model to refocus on their community engagement to ensure Long-term sustainable development and growth.
According to Forefront Terminal statistics, as of February 2, 2023, the number of key communities covered by Pulse has reached more than 47, with a cumulative membership of more than 33,876, a cumulative treasury balance of approximately US$103 million, and a total project value of more than US$270 million.
"Nounish" Unlock
We can't do a year in review without having a meaningful discussion about the Nouns DAO.
Launched in 2021, Nouns DAO advocates a simple on-chain promise:One Noun auction every day, forever.
The Nouns perpetual auction mechanism has proven to be a way for tokenized communities to unlock sustainable revenue, reflecting (theoretically) the value of governance for the allocation of funds to community projects.
Nouns' treasury currently sits on more than 27,800 ETH, hundreds of voting members, and a rich ecosystem of builders and creators, all of which have contributed to the explosion of Nouns' meme properties.
Of course, many communities see Nouns as a replicable model, with varying degrees of success. For example, Lil Nouns and Gnars have established a good reputation as Nouns "subDAO", and have added Nouns meme attributes while adopting more specific community mandates. However, the two also have bottlenecks in the accumulation of funds, and it has been difficult to reach the level of even a small part of the funds owned by Nouns DAO.
On the other hand, projects like SongADAO take existing creative endeavors (eg Jonathan Mann's Song a Day) and turn them into a tokenized community by employing the Nounish perpetual auction mechanism.
Jokedao also launched a DAO driven by perpetual sales (weekly instead of daily): jokerace DAO, which will launch a joke competition every week, participants use jokedao to vote for the best joke, and the winning joke will be minted as an NFT , making it the first NFT series DAO completely generated and managed by members.
Purple, Public Assembly, BlvkHvnd and other DAOs grew in Q4 thanks to the Nouns Builder protocol, and the Builder DAO (the DAO that manages the Builder ecosystem and protocol) has also become the second largest vault in the Nounish ecosystem.
Ecosystem highlights of Nouns DAO include:
Prop House. Prop House is a public infrastructure designed by Nouns DAO to help the Internet community stimulate the development of the ecosystem (the treasury fund is 1820 ETH);
Nouns Builder. Nouns Builder is a tool that allows any DAO to be created and governed on the chain in the form of Nouns DAO (vault funds 1000 ETH);
Nouns On The Ground. An experimental Proliferation exploring ways to bring Nouns into the real world (vault funds 662 ETH).
PFP becomes DAO
Thousands of new PFP series have appeared in 2021, each with its own community, mission and values. However, most of these communities are asking, "what's next?" They rely on the core team to continue to build the ecosystem, and the community basically acts as a free marketing workhorse.
At the same time, tokenized communities like Nouns DAO are gaining momentum, allowing token holders to fund proposals based on the community’s mission, and funds are allocated to community projects rather than being hoarded by the core team.
With the launch of ApeCoin DAO, the PFP project has a rough blueprint and new possibilities——Although the ApeCoin DAO uses a brand new token for governance, BAYC holders and other Yuga ecosystem members are able to participate in the DAO in a meaningful way without waiting for the core team to move the ecosystem forward.
More PFP communities have already started transitioning to DAOs, or at least are discussing it, and with new on-chain and off-chain tools emerging, we expect in 2023 many PFP projects that are able to build great brands will actually start building great brands for their communities provide strength.
One of the biggest examples is Moonbirds, whose DAO will launch early this year. The DAO will have assets worth $2.6 million, including $2 million in ETH, for NFT holders to manage.
Proof, the startup behind Moonbirds, will also grant the DAO a 35% creator royalty on Moonbirds and its spinoff, the Oddities series. "Rogue Proposal".
Business Model Evolution
"The DAO is the product." — @thattallguy
From 2020-2021, the tokenization community really has only one business model (if it can be called one) that seems to work: treasury diversification financing.
In March 2021, the FWB governance module approved their treasury diversification of 7% of the token supply at a valuation of $10 million; later that year they approved a new round of vaults at a valuation of $100 million Diversified financing.
Forefront also raised a coffers diversification round at a $20 million valuation in late 2021, with Cabin and others not far behind.
This pattern is clearly flawed:Tokens are being sold in large quantities like equity, not only taking it away from potential active members, but still failing to generate sustainable income for the project coffers.
This is why people are so excited about the Nouns perpetual auction mode:Income can scale with the growth of the community and its memes.
However, it is clear that most tokenized communities are still struggling to generate sustainable revenue. No other "nounish" DAO is able to generate even a fraction of its revenue through Nouns' perpetual auction mechanism.
Some of these communities, such as Water & Music and Forefront, have managed to generate revenue through "membership passes" similar to Web3 native media subscriptions; others, such as FWB, have focused on brand partnerships, leveraging the influence and expertise of their communities with Hennessy and others. Some major brands build unique collaborative experiences.
At the same time, by the end of 2022, the open version of the experiment became a mechanism for DAOs to profit from important media or cultural artefacts - Nouns DAO used Zora to produce a DAO explainer video, which generated more than 300 ETH income.
One of the most exciting things about working in these communities is people coming to the table with the ambition to, as Jess Sloss recently said, “do something that people want to be a part of.”
Looking across the space, it's hard not to get excited about the big dreams of the tokenization community.
For example, Krause House is building at the intersection of Web3 and sports, with the ultimate goal of being the first to buy and collectively manage an NBA team!
And Cabin is building a network city for online creators, which now looks more like a global shared network, allowing thoughtful people to create, coexist and protect. As the Zero community thrives in Austin, Texas, there are many more to come, and while their visions aren't explicitly linked, Cabin is often seen as an early manifestation of Balaji's "state of the web" (Foresight News Note, Balaji "network status" refers to communities organized around a particular vision of governing society, starting out as online clubs but eventually growing strong enough over time to seek political autonomy and even diplomatic recognition).
FWB is also leaning towards this vision of a "decentralized city" and is more focused on being a cultural center that "shape Web3", this community is undoubtedly one of the OG communities and continues to do new interesting experiments for other tokenized communities Pave the way, including brand partnerships, IRL events, grant programs, and more.
Finally, it’s becoming increasingly clear that tokenized communities are also the future of media, from decentralized media experiments like Rehash, collaborative media tools like Forefront’s Pulse, and the rich network of tokenized communities emerging every day. Looking at funding opportunities, there is no doubt that the economics of media will fundamentally change, not just because of their digital nature, but their online nature as well.
Even the world of long-form video production is being disrupted by DAOs: Shibuya, a project initiated by Pplpleasr, crowdfunds long-form video productions — such as short films, movies or TV series — by selling NFTs, called “producer passes,” Disrupting the traditional studio-driven approach that now dominates the industry.
ERC-20, NFT and Dual Token Model
Many are calling 2022 the year of ERC-20's death: With ERC 1155s being used for "versions" and 721s being used for non-fungible tokens, ERC-20 appears to be an unsuccessful experiment. DAOs are supposedly sitting on massive vaults, but when more than 90% of those vaults are their own native governance tokens, there is understandable widespread concern about them.
Many also pointed to issues with security attributes, the complexity of managing liquidity pools, and the lack of revenue generated from token airdrops, making ERC-20 an unsustainable economic tool.
However, some new or old communities choose to keep their ERC-20 tokens using the dual token model.
Among other things, by launching GOO (Gradual Ownership Optimization) for its Art Gobblers project, Paradigm has made significant progress towards an effective two-token model: the more Goo a Gobbler owns, the faster it can generate more Goo. This means that the total supply of Goo is increasing faster and faster every day, from thousands to millions or more.
Communities such as rugDAO use a similar token distribution model, where users receive more ERC-20 tokens the longer they hold an NFT.
Overall, most of the failures of ERC-20 tokens to date stem from two issues: insufficient revenue and lack of distribution.
First, ERC-20 tokens are useless without meaningful treasury to manage them. The advantage of NFTs is not because they are inherently better governance tokens, but because buying an NFT usually means that money will flow into the project treasury, so there will be something that needs to be governed by the community.
Second, the NFT distribution model is generally fairer, while the ERC-20 token distribution looks very similar to traditional startup equity distribution in many communities.
These two issues are common, but not inherent to token standards. Given the need to explore community reputation, tipping, ownership distribution, participation, etc., we expect ERC-20 tokens to make a comeback in 2023 and beyond.
cultural production community
If you look closely enough, you could argue that 2022 is the year of "Metalabel" ,this is correct.
"Metalabel" is a relaxed club where a group of people with the same interests collaborate and support a certain work together. "Metalabel" is also a lightweight structure that creates economic, emotional, and creative alignment among collaborators, and it thus could also be a tokenized community (and many actually are).
Metalabel, the company of the same name that coined the term, is building tools and models to help facilitate the development and production of "Metalabel" worldwide. In many ways, however, the hardest job is defining the types of communities that already exist.
For example, Songcamp is an artist collective formed in March 2021, which became popular in 2022 with Camp CHAO. This "unorganized band" is made up of more than 80 musicians, producers, designers, and operators who have co-written more than 40 songs and generated more than $500,000 in NFT sales revenue, which is funded by the band's participation are divided equally.
Songcamp isn't the only music community adopting Web3 tools, in 2022 we've seen the dawn of communities of music collectors, decentralized record labels, nounish music DAOs and more, in many ways music is a way to fully embrace Web3 without limits The art of experimenting.
The "maturity" of DAO tools
Bottom-up governance tools:
Jokedao— On-chain, bottom-up governance tools for any community;
Prop House- Nounish dao's competitive governance tool;
No platform membership tools:
Guild— automated management tools for tokenized communities;
Token-driven knowledge and action tools:
Clarity- Document and task management tools for distributed teams;
Wonderverse— Token-driven project management and operation and maintenance tools;
Publishing tools:
Mirror—— Decentralized distribution and creator profit platform;
Lens—— Decentralized social media where users have data ownership;
Farcaster- Decentralized social media with a Twitter-like client;
Token Creation Tools:
ZORA——All-In-One NFT Creation Protocol;
Coinvise— Universal Token Minting Platform;
Manifold— A no-code NFT minting tool for creators;
Recruiting and networking tools:
Backdrop— Decentralized professional network;
Layer 3 - A decentralized bounty and reputation platform for tokenized communities;
On-chain authority and legibility tools:
Metropolis— A secure encapsulation tool for on-chain membership control management;
Hats— On-chain role management tools for DAO members;
annual article
《Life After Lifestyle》，Toby Shorin；
《Hyperstructures》，Jacob Horne；
《An Exploration Of Internet-Native Organizations》，Scott Moore & Maxwell Kanter；
《The Onchain Era》，Yancey Strickler；
《The New Creator Playbook》，Variant Fund；
《Why NFT Creators Are Going Cc 0 》，Flashrekt & Scott Duke Kominers；
《DAOs Are Not Corporations: Where Decentralization In Autonomous Organizations Matters》，Vitalik Buterin；
《The Ownership Economy 2022 》，Variant Fund；
《Tokenized Communities》，Jihad Esmail；
《The Laws Of Lorecore》，Shumon Basar；
《Decentralization》，Not Boring；
《What Co-Ops And Daos Can Learn From Each Other》，Austin Robey；
《Scaling Trust In DAOs: Trustware Vs Socialware》，Orca Protocol；
《Beyond Phygital》，Red DAO；
《Old But Goodie - My Collectible Ass》，McKenzie Wark；
What to watch in 2023
Regulatory clarity: Organizations like Syndicate and LexDAO have been exploring how to design DAOs that comply with existing laws, while a16z and others have been writing extensively and working with lawmakers to design effective DAO regulations, which is expected - Progress will accelerate in 2023;
On-chain minimalism: The power of tokenized communities lies in the fusion of “trustware and socialware,” and as more and more DAOs come on-chain, expect an explosion in tools built for community collaboration and trustless funding ;
Online communities transforming into on-chain communities: With the advancement of the Reddit community points project, online communities are rapidly on-chain, and tokenized communities will not just start from scratch, but will be born from some of the most active communities on the Internet today;
Rebranding on the basis of unchanged technology: When it comes to mainstream adoption, branding will be a major narrative in 2023, and "NFT", "DAO", "token" and other crypto-native words are not recognized by most consumers Accept that further adoption of this technology will need to be accompanied by a rebranding of the technology;
epilogue
epilogue
2022 is really a year of hell, and 2023 has the beginning of a warming industry.
The tokenized community is finally hitting its stride, with the marketplace gradually developing new revenue models and funding community projects never before funded by traditional institutions.
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