Daniel Nagy, Vice President of decentralized data storage and distribution company Swarm, spoke about a new class of tokens that have significant potential. Social tokens are based on the same concept as non-fungible tokens (NFTs), however they serve a different purpose.
While NFTs can be used to represent real assets and are not fungible, social tokens are fungible and divisible. Daniel Nagy stressed that this makes them an ideal medium of exchange that can be used to monetize online communities and Web3 services.
There are two main categories of social tokens: personal and public. The former creates media personalities to monetize some forms of their activities. The latter are designed to encourage various activities of platform participants. Both forms of social tokens allow media personalities and businesses to provide their communities with access to exclusive paid content or product offerings.
"Social tokens can take crypto communities to the next level. As they grow in popularity, they can become a bridge for non-crypto users and make the blockchain more popular, similar to how NFTs did. It's only a matter of time,"Nagy said.
He emphasized that social tokens will be especially effective for growing companies that need to benefit from a loyal fan base in order to develop and promote the project. Social tokens can be used on Web3 platforms for tips. This not only eliminates intermediaries, but also saves the creators of technological or cultural values a significant part of the income and their creative independence.
Last year, 24 clubs from five of Europe's top football leagues launched their fan tokens and raised hundreds of millions of dollars. At the end of the year, sales of football club tokens exceeded $350 million.