We will see one breakout crypto community. The only thing hotter than crypto right now might be community — and community and crypto go hand-in-hand. Tokens lend themselves very well to communities with a focus on incentives (achievements, hitting goals, rewarding good behavior etc).

We’re all evangelists for our favorite artists, and yet we capture little of the value we help create. Social tokens uniquely combine elements of patronage (support for the artist), fandom (closer connection to the artist), and investment (financial upside from the appreciation of the digital asset).

Today, top creators are rewarded with inefficient virtual currencies (e.g., likes/follows) and cash from a centralized platform. In the future, creators will build a new form of status through these community-driven NFTs which they own through their private key and can directly redeem for money.

If you look at the social DAO landscape, you’ll see communities with different social token models. Some, like FWB, use a fungible social token to gate community access. Many emerging PFP-based communities like BAYC use NFTs as the primary community gating mechanism. Whether fungible or non-fungible, social tokens in DAOs usually represent three di... See more