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What Are Social Tokens And How Do They Work?

Most people have certainly heard of bitcoin and the blockchain. Still, social tokens are currently considered the upcoming break in cryptocurrency since they create decentralized online communities where everybody benefits without the necessity of a third party.

The recent emergence of India’s social token, Gari, by a superstar like Salman Khan has caused the general public to take notice of tokenized communities. But what exactly are social tokens, and why are they becoming more popular?

In the course of this post, we shall learn more about this.

What are Social Tokens?


Social tokens often referred to as personal tokens, are virtual currencies that let creators charge for their products and services. They are based on the same decentralized, blockchain-secured design as popular cryptocurrencies like Bitcoin or Ether.

These tokens empower a community while enabling members to form a solid social bond around a particular person or business.

The capacity of creators to monetize their products and receive a fair part of their labor-intensive earnings has long been constrained. It’s because platforms like Facebook and Spotify often share profits and have creative control over their material.

Social tokens, on the other hand, eliminate the presence of intermediaries so that creator can equitably monetize their goods while maintaining complete creative control.

Moreover, a social token can be made by anyone. You can enter the social token market as a person or a company and establish a social token. But the more reputable the entities the tokens are linked to, the more valuable the tokens become.

How are Social Tokens Beneficial?

After defining a social token, let’s examine why it benefits the sector and its communities in various ways.

Social tokens primarily draw their worth from the content producer’s reputation and the unique advantages that token holders enjoy. For instance, rising musicians can provide a social token to give their fans a more customized experience.

The purchaser who buys the token help the artist financially in exchange for special perks like invites to exclusive events, hence, benefiting both parties. Similarly, the social token can also prove to be an economic treasure by providing token holders prior access to exclusive content and new goods for well-known companies.

Social tokens have a worth that might grow significantly over time since they’re distinct from ordinary online membership schemes because of their tangible aspect.

Types of Social Tokens

Social tokens primarily consist of two types: personal tokens and community social tokens. ‘Participation tokens’ and ‘social platform tokens’ are other terms one could run into. These are regarded as separate groups that do not belong to the other major classes. Let’s get into the detail of each one by one.

Personal Tokens

Personal tokens, also known as “creator tokens,” are created by people in exchange for labor and other services. Well-known people nowadays use these tokens to advance their careers or popularity, including athletes, entertainers, musicians even regular people.

For instance, French businessman Alex Masmej tokenized himself by offering ALEX to his cryptocurrency enthusiasts. In this way, he gathered the funding he needed to start his own media network and, in return, offered the token owners a portion of Masmej’s future earnings for the following three years.

Similarly, some influencers are already selling these tokens to admirers, granting them access to chat with them.

Community Tokens

Community tokens or community currencies are a strategy used by businesses or a group of individuals to promote their unique brands to customers. Token owners can take advantage of special perks only available to that community, such as access to limited-edition merchandise. It differs from personal tokens because one may also be granted governance rights and a cut of the company’s profits.

Also, unlike personal tokens, community tokens are more accessible to market because the organization in charge already has a significant following. A decentralized autonomous organization, or DAO, is primarily responsible for introducing community tokens.

Participation Tokens

It’s common to refer to participation tokens as a division of community tokens. Participating in a project’s development allows users to earn these tokens. An excellent example of community interaction is friends with benefits.

The community brings Web 3.0 enthusiasts, philosophers, artists, and innovators to work on various projects. Successful teams are generously compensated for their work.

Social Platform Tokens

For holders to profit from the expansion of tokens issued in the network, crypto tokens reflect control over a platform that enables social token issuing and exchange.

Social platform tokens are given by the sites that enable their creation and exchange. The issuer decides the perks and value of each token, but holders can anticipate receiving a huge array of advantages.

Rally and TryRoll are two examples of social platform tokens. Rally is a well-known social token platform that lets people, famous people, and companies design their social tokens and NFTs.

In contrast, TryRoll allows users to design an ERC-20 token that can be distributed to others on various platforms. Additionally, it provides custodial Ethereum wallets with the ability to send social tokens to any ERC-20 token-compatible address.

Social Tokens vs. NFTs

Like non-fungible tokens (NFTs), social tokens function by using blockchain to allow actual ownership of the underlying digital asset. Social tokens, however, are not non-fungible tokens (NFTs). Because NFTs are unique, each token is distinct from the others and has a special value that distinguishes it from other units.

Social tokens, however, are fungible because each unit has a similar value. For example, one-dollar bills are equivalent and have the same value as any other one-dollar bill worldwide.

Another significant distinction is the nature of the underlying asset. While social tokens are designed to monetize producers directly, including the products and experiences they might provide, NFTs are used to monetize virtual commodities.

Pros and Cons of Social Tokens

Knowing what social tokens are and how the two key stakeholders—the content producer and the token owner work together to increase a brand’s value. Let’s now examine more closely how they benefit the local community and industry and what some disadvantages are.


Fair Monetization

Social influencers have historically utilized paid posts, marketing, and subscription models to entice new followers, who, in turn, receive a sizable portion of the money in this arrangement. This deprives content producers of a respectable profit.

Social tokens come to the rescue and enable content producers to receive direct payment and distribute rewards to their fans. Also, when fans know that their money is going directly to the accounts of their favorite creators, they may have an economic incentive to support their success. On the contrary, it’s also a fairer and more open approach for creators to get paid.

Community Engagement

With the aid of social tokens, fans now have more opportunities than ever to communicate with their favorite influencers. A more individualized experience is given to the community in exchange, strengthening their relationship.


Smart contracts ensure that each token’s value that a fan purchase to support their favorite creator is maintained. This indicates little room for controversy because the smart contract specifies everything. With this setup, issues can be resolved without the involvement of mediators or third parties.


Social tokens work on blockchain technology, which means all the data is stored in a block linked to every previous and every block after it. This makes it Virtually hard to alter the data. The only time such creator coins are vulnerable is when they are put into a wallet. But nowadays, digital wallets use stringent security measures, making them safer for users.

Community Benefits

In addition to sharing the most recent information and access to private events of the brand of influencer they follow with the community, token holders also have to vote on decisions, such as who should be appointed as a community manager or how to handle the common treasury better.

Co-Owning Content

With the creation of social tokens, centralized authorities lost their control over the material and the power to alter creativity, set prices, or even demonetize authors that they once had. As a result, token holders are seizing the power of the digital world’s creator community.

Co-owning Passive Income

Users of social tokens can co-own NFTs that can be traded multiple times. And they might receive a commission on each transaction. Similarly, content creators may utilize smart contracts to define the accompanying royalties and to specify future income for when their NFTs are transferred.


An unsafe Investment

With benefits are also associated some risks that come along with owing social tokens as an investment. Although their values can rise significantly, one keeps in mind that not all tokens have a value behind their projects, especially those that lack the support of a powerful venture. So, if you lose your investment, there is no way of recovering it.


There has yet to be an international regulation in existence to examine social tokens. Because of this, content producers could face various legal challenges, such as bankruptcy problems. The legal position on how much purchasers will be protected by consumer law is also still being determined.

Long Term Commitment

Making a token takes time and effort. When you develop a social token, you have an implied responsibility to increase its value, whether this is done by adding additional content, enhancing the perks, or otherwise benefiting your community.

Key Elements to Take into Account When Creating Social Tokens

When beginning to develop their own social tokens, marketers should remember that they must think strategically about the long-term investment of both time and money. Social tokens best personify the trust economy. Individuals need to be able to believe you and your business brand for them to purchase your membership or tokens.

Otherwise, they won’t. A social token can also put your reputation at risk as they are now connected to your name, so one has to be very careful in building and maintaining the reputation.

The second thing is to build a business roadmap. You can’t successfully experiment with making social tokens because it spills over to the other side, which is why many marketers choose to dabble in developing social currency. You must examine everything to incorporate those social tokens.

Examples Social Tokens

To see how social tokens will affect our life, let’s look at a few of their successful projects.


Alex Masmej, a budding entrepreneur, developed the social token ALEX to fund his cryptocurrency-related projects. He produced the ALEX token and offered it to his supporters in exchange for a portion of his potential earnings for the following three years to raise funds to create a more sustainable enterprise.

He successfully raised a handsome amount of money via this. The net worth of ALEX approached $2 million during the cryptocurrency boom, demonstrating the usefulness of creating such unique tokens.


André Allen Anjos, a Portuguese musician, developed the RAC token to reward devoted fans with access to special benefits and materials. As a result, 25,000 RAC were given out to DJ RAC’s devoted followers, Twitch viewers, and RAC merch owners. RAC has become one of the most popular personal tokens since its inception.


UCLA basketball star Jaylen Clark developed the JROCK token. He developed his social token so supporters could communicate with him directly and support his professional development.

Holders of tokens have first access to unique goods, raffle tickets, behind-the-scenes material, and exercise videos. Additionally, token owners might gain from increased JROCK’s value because it is exchanged on the secondary market.


Global Coin Research is a research and investing organization, and GCR is its native token. GCR is currently working with 30,000 members. The community uses the tokens to finance various investment projects.

Token owners also gain access to exclusive events where they may communicate with other NFT artists and make investments in new ventures. The company also hosts weekly gatherings for entrepreneurs and trainees.


One of the most popular tokens, Whale, known as WhaleShark, was introduced in 2020. WhaleShark, a fictitious NFT collector, made WHALE. It strikes a dynamic equilibrium between asset protection and economic speculation because the token’s value is determined by WhaleShark’s collection of NFTs. The collection’s value as of 2022 is $73 million.


The underlying unit of account for the social media network Steem is STEEM. The project’s objective is to allow users to profit by helping to build the platform. The project’s aim is to allow users to profit by helping to build the platform. By producing content and receiving rewards in the shape of STEEM, anybody can be a shareholder.

GenG (GG Strike Coin)

Global esports organization is behind this currency, i.e., GG Strike Coin. Strike Coin by Gen.G interacts and benefits supporters in various ways. For instance, holders can access exclusive Discord talks and vote on major team decisions such as jersey designs. It also can provide a great opportunity to reconsider content development and social integration, giving greater value to all parties involved.

The Future of Social Tokens

Building a social token is like creating your online forum. It’s unlike anything you’ve encountered because it enables collaboration between token holders and content creators to build brand value.

Instead of relying on social media to interact with their audience, content producers are more likely to utilize a social token to share the rewards of community interaction and prospective price hikes.

Social tokens are also here to stay because they are useful and have a lot of value. Rally, for instance, has established itself as the world’s leading network for quickly creating social tokens. The same goes for WHALE, whose value has spiked up more than the NFT it has been based on.

While cryptocurrency is still relatively new, it is already developing far more quickly than anyone had originally anticipated. People are putting everything into the ownership component. It is expected that several online groups that we currently see will be replaced by decentralized autonomous entities that operate on tokens.

These tools will gradually become more widely available as they develop and advance. It will be simpler for anyone to manufacture their tokens since the entry barrier will be lowered. 

Moreover, within the next few years, many large corporations may convert their rewards programs to tokenized ones. People may, for example, get Target tokens instead of Target perks, which can be used to purchase more goods and services.


Social tokens may appear to be an odd concept in the world since we live using Web 2.0 social networking, which actively controls its users. However, the idea is fascinating and extremely pertinent in light of the emergence of the next generation of the internet, Web 3.0, which aspires to create connections more directly.

As a result, social tokens are destined to become valuable assets. It will only be a matter of a time before when the token economy will take over social media networks as more influencers come on board to create these tokens.

Though it can provide a great opportunity to reconsider content development and community involvement, resulting in greater value being given to all parties involved, it should not be forgotten that these tokens are intimately identified with the individual or brand for which they are named, there are hazards associated with their value.

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Hassan Mehmood (Saudi Arabia)

Hassan is currently working as a news reporter for Tokenhell. He is a professional content writer with 2 years of experience. He has a degree in journalism.

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