Community Tokens, DAOs and NFTs — How crypto technologies are shaping the Creator Economy
It would seem that there is more to decentralized autonomous organizations than just buying a collection of NFTs now they widely recognized as a value stream for creators worldwide. The implications of this successful experiment are massive for upcoming projects in the space, which includes BitFans.
IreneDAO — What was the fuss all about?
After launching Friday, a new decentralized autonomous organization (DAO) called IreneDAO caused a huge stir in the crypto world, seemingly overnight. Irene Zhao, a 28-year old influencer recently left her job as a real estate broker to follow her entrepreneurial passions in the crypto space.
Zhao sold a collection of NFT-based stickers of her in various outfits and poses. Each collectible had references to famous crypto memes such as “WAGMI” (indicating “We are All Moving to Construct It”) and “gm” (“ good morning.”, an expression widely used in Twitter). These NFTs serve as an entry pass into the IreneDAO’s “Genesis Tribe,” which initially minted for free. Currently, the floor price for each is at 1.25 ETH on OpenSea, or about $4,130 at the time of writing.
SO-COL Seeks to Transform Social Media
In their case, NFT’s are not only collectibles, but also serve as proof of membership for communities .While some have ignored Zhao’s drop as yet another throwaway NFT collection as many that have come before it, IreneDAO appears to own have a much larger long-term vision for its patrons. Zhao hinted at more things in store for the DAO and that it was expecting to become a “grassroots activity” for the creator economy — effectively shifting the focus from platforms to the creators themselves through this experiment.
Zhao’s main goal is to create an enterprise based on a StarkWare-powered Layer 2 protocol called SO-COL. Short for “Social Collectables”, she claims that it will be a “decentralized version of OnlyFans, Twitch, and Patreon.”
“IreneDAO formed as a social experiment to verify SO-COL’s core vision of enabling innovators by joining them with their congregations via nonfungible tokens NFTs,” she said. “The foremost goal is to construct hundreds or even thousands of such communities through SO-COL.”
Beyond NFTs — Fungible Tokens still reign supreme
While NFTs have mostly been tied to the concept of generating wealth, many overlook the fact that the primary benefit of tokenization is in value creation.
The question is — Why fungible? Value, of course, is created over time. Fungible tokens offer a wider range of incentives for both token creators and holders to help the ecosystem grow organically over time, rather than constantly trying to flip them for profit. While NFTs are extremely volatile and unpredictable in nature, fungible tokens give more promising projects and communities room to grow. The use of tokens as a form of proof of membership or proof of support remains largely untouched, which BitFans believes will have huge implications for the future of the Creator Economy.
BitFans offers creators, influencers, businesses, brands and organizations to create their own fungible token ecosystems. These tokens can be associated with a set of perks and benefits, such as fans gaining access to private communities of their favorite creators where they can freely interact with like-minded individuals, collaborate with the creator to come up with genuine content that the community seeks, and even come up with fun ways to make use of the tokens. In a few easy steps, you can mint a token for your group and design various incentives that will engage participants in new ways.
While brands such as Louis Vuitton, Gucci, Adidas, Nike, Samsung and so many other huge brands have entered the NFT space, this is only scratching the surface when it comes to leveraging tokenization. Imagine owning Disney Tokens and based on your holdings be able to gain levels of access to the theme park, with perks like getting a free souvenir for each visit or getting into the priority lane.
Now, bring that to the context of individuals. BitFans creates avenues for creators of all sizes and leverages the use of community tokens. As a result, fans have few alternatives for actively supporting the creator’s success. If creators could potentially align incentives with their communities, then there would effectively be motivation for these loyal fans to continue to help their ecosystem grow, which we believe is even more powerful than brands leveraging tokenization. Community Tokens are designed with alignment in mind for more adoption amongst new and existing audiences.
Creators may use community tokens to expand their following and generate new value streams by creating a digital ecosystem that uses their tokens in a number of ways. They may provide customized rewards, unique content, and opportunities for fans to interact with them, all while maintaining full ownership of their communities.
The BitFans platform is geared towards cultivating brand new forms of interaction and bridging interests among individuals, brands, and communities. If you belong to an organization and are interested in seeing how we can help enhance your current infrastructure, don’t hesitate to reach out to us using any of our socials: https://linktr.ee/bitfans