What Are Social Tokens?

If you are interested in the rapidly expanding sector of cryptocurrency and blockchain technology, the current era of these digital assets has you in for a treat. With various use cases and applications being brought to the forefront on a regular basis, you get front row seats to developments that potentially alter the face of finances, transactions, and record-keeping forever.

One such revolutionary step comes in the form of social tokens. These tokens not only allow you to hold value in terms of cryptocurrency, but also let you grow these assets in a way that benefits interconnected communities. As a result, you can fully benefit from learning what are social tokens and how do social tokens work.

While the information regarding the social tokens cryptocurrency phenomenon seems a bit tricky to process at first, it is quite easy to understand once you learn a few basic points about it. This ensures that you are able to navigate through this new yet exciting part of the cryptocurrency sector with the utmost ease.

To help you through this learning process, here’s a lowdown on everything you need to know about social tokens, their functionality, and their overall advantages for creators and users alike.

What Are Social Tokens and How Do They Work?

Social tokens are cryptocurrency coins that are issued by celebrities, brands, or collectives against their own blockchains. Through the use of these cryptocurrencies, these individuals or entities are not only able to generate revenue for themselves, but also become capable to fulfill specific purposes such as offering special access and privileges to token holders.

Due to their community-based approach that offers use cases and perks to those who are associated with a specific segment, cause, or organization, these digital assets get the name of social tokens.

It is also important to remember that despite being an innovative form of cryptocurrency, social tokens are not non-fungible tokens (NFTs) or decentralized apps (DApps). Instead, they are fully-fledged cryptocurrencies that have additional features as well as the niche use case of serving different collectives.

Similar to other cryptocurrencies, social tokens are created with a preset quantity in mind that can actually go into millions. These tokens can also be exchanged on popular cryptocurrency exchanges. But their most important delivery mechanism comes from the network itself, where they are handed over to users who participate in network-centric activities. This is one of the most important points to understand about how do social tokens work.

The main goals of social tokens cryptocurrency are to sustain and preserve the operations of a blockchain network through a community-building approach, while also driving revenue for the creators as well as the users of these digital assets. Social tokens achieve this feat by giving value to operational as well as transactional actions across the board. That is also how these tokens make their way to different users.

This approach includes the users being rewarded in return for investing their time, effort, and energy into utilizing or managing the network. Additionally, it lets token holders enjoy special access to exclusive features and content offered by the respective blockchain network or its original creators. The latter approach also encourages people to purchase these tokens when they cannot receive them in the form of rewards.

When the tokens are received by users either through a reward or a purchase, they can be used in various manners. Regardless of the way that you plan to use these digital assets, learning what are social tokens and how they work is highly important before you invest in them.

Since social tokens are a relatively new form of simple transactional-based cryptocurrencies, going through the learning curve makes sure that you are able to understand all the risks involved with them and make an informed decision about investing in these modern assets.

What Do Social Tokens Cryptocurrency Offerings Do?

Similar to most cryptocurrencies, social tokens are created over regular blockchains. But unlike their more popular counterparts such as Bitcoin, social tokens are also able to serve a variety of purposes. This is an important point to comprehend regarding how do social tokens work.

This includes but is not limited to the following possibilities.

  • Unlocking specific content and access offered by token creators.
  • Rewarding creators and users of the blockchain with monetary benefits.
  • Managing certain actions and activities on the blockchain network.
  • Executing value transfer between users of the network.
  • Exchanging social tokens for other cryptocurrencies.
  • Using social tokens to tip other users or token creators.

These are just a few use cases of social tokens. As the segment evolves further, it remains open to further developments and applications of these advanced cryptocurrency offerings.

While social tokens can be created over any blockchain and get marketed as a community-centric or reward-based approach, their most apparent use case comes in the form of the decentralized autonomous organization (DAO) mechanism.

In this mechanism, different users come together to keep the blockchain-based organization running smoothly. With that being said, the operation of the organization remains completely decentralized and free of the control of a single authority. At the same time, the organization also rewards users for their participation, while also driving value for those who create social tokens out of the platform.

In a DAO, users come together to maintain the operations of the blockchain and have it perform its set of actions without interruptions. This is possible through smart contracts, which define the rules of the DAO and keep it intact. When users follow these rules, achieve milestones through the organization, and vote on proposed changes to implement them, they can receive social tokens as a reward.

At first, it can be a bit challenging to understand what are social tokens applications within a DAO in the first place. But once you go through the points regarding a community running a blockchain together, this particular instance becomes quite straightforward for you to grasp.

To put it simply, the concept of how do social tokens work in a DAO goes right in line with the primary approach of these digital assets. Given that DAOs are all about building a community-based organization, rewarding users for their dedication to the network through tokens stands out as a natural application.

Since DAOs also need to maintain an interest in their blockchain-specific token for the sake of keeping the platform alive and interesting, the approach to create hype through different access programs and highlighting the social tokens cryptocurrency usage also becomes a logical pairing for these decentralized organizations.

When social tokens are used within a DAO, they allow token holders to perform the following actions.

  • Vote for changes. Members can vote on different proposals to enact changes on the blockchain.
  • Support governance. The votes for changes could include governance-related overhauls.
  • Earn rewards. By giving their time to the DAO management, users can win social tokens as rewards.
  • Transfer tokens. Users can also transfer tokens to other people.
  • Get special access. Some DAOs may allow the holders of a certain amount of tokens to access exclusive features.

Due to this reason, DAOs have become highly important for social tokens and vice versa. The social aspect of this use case becomes even more prominent when the DAO is built around a central topic, theme, and even a personality. This brings us to highlight exactly what type of entities and individuals can create their own social tokens and reap the rewards of this marvelous digital asset.

Who Uses These Social Tokens in Cryptocurrency?

After learning what are social tokens, a variety of organizations and people can create and use their own tokens in this segment. But what mainly brings these entities and individuals together to use social tokens is the concept of rewards and perks associated with the respective blockchain as well as the overall technology that makes it all possible. As long as they and their target audience understands how do social tokens work, the novelty of the concept goes a long way in their favor.

This is also quite an interesting part because even though the use case of social tokens cryptocurrency is quite clear, the actual origination of them is debatable among different experts. Some argue that social tokens only relate to a DAO that is created around a purpose such as financial fulfillment, while others take the term “social” quite literally and attribute it to the idea of celebrity-centric social communities.

This creates room for debate regarding who can create social tokens. But seeing that both organizations and individuals have been able to pull off that feat so far, the discussion is more about semantics than the practicality of these digital assets. For all intents and purposes, social tokens are more than capable of serving both organizations and people, which is why they are also a big hit among individuals who want to monetize their fame or creativity.

With that being said, some of the most sought after types of social token originators include but are not limited to the following.

  • Artists and content creators
  • Influencers
  • Celebrities
  • Financial institutions

By learning about what are social tokens and how they can benefit each of these segments, you can see why social tokens are becoming a sought after way for different entities and people to grow their brand or promote their cause.

The following information helps you get an overview of how do social tokens work for each of these segments.

Artists and Content Creators

Artists such as singers, musicians, songwriters, and painters usually have a hard time generating revenue. This is especially true for those artists who have started making a name for themselves but have not yet broken out into the mainstream or attained worldwide fame.

On the other hand, those artists who have obtained a certain degree of fame still find it hard to translate a huge fan following into actual dollars, unless they are out churning content or attending in-person events.

By learning what are social tokens and how do social tokens work, these artists can create their own blockchain tokens and use them to build a community of fans who are there to support their endeavors. From there, these artists can promote their activities, create exclusive content, and let token holders vote on what type of content they might want to see in the future.


Influencers are different from many artists and mix their expertise in creativity with a spin on celebrity. For influencers, the creative arts are all about visuals, persona, and connecting with their audience. But even if an influencer has hundreds of thousands of followers, generating revenue from anything other than sponsored content (sponcon) can be next to impossible.

That is where the use of social tokens cryptocurrency comes into the picture. By creating their own social tokens, these influencers can be more in tune with their audiences in terms of knowing what type of content they like and what kind of posts they may want to stay away from. This becomes possible due to the social tokens use cases of rewards and voting among other aspects.

This allows influencers to have a stronger connection with their audience and increased revenue for themselves. In turn, this could help them push their own merchandise or simply raise their profile.


Other celebrities such as actors and models can also learn what are social tokens and benefit from the perks that these digital assets bring to the table. Once they learn how do social tokens work, they can develop their own tokens and start connecting with their community along with the promise of rewards and special access.

From signed merchandise to photo ops and everything in between, celebrities can offer a variety of different perks through social tokens cryptocurrency that appeal to their audience. With this, they can also reward those users who support the network and keep it running.

This creates an environment that can easily use the DAO mechanism, but without requiring the respective celebrity to actively manage the blockchain all the time. With that being said, it still gives them the ability to generate ongoing revenue for themselves while harboring a stronger connection with their audience.

Financial Institutions

Financial institutions or platforms may not have the same fervor around them that a popular singer or actor might hold. But they have the ability of generating interest with the help of one aspect that drives the world: financial benefits.

These financial perks can range from lending opportunities to interest-bearing offerings. Depending upon which segment holds your attention, you can enjoy a highly rewarding way to achieve your desired goals. In the case of DAO-based networks, obtaining your objectives becomes easier when you receive social tokens as rewards or receive special perks for holding purchased tokens.

That is why, many of such organizations are not only learning what are social tokens, but also excelling at showing people how do social tokens work. This sense of community and building a financially-rewarding ecosystem works in the favors of these network creators and users alike.

How to Use Social Tokens and How to Buy Them?

The many uses of social tokens cryptocurrency allow you to benefit from them in various ways. As for the question of how to buy these social tokens, the answer is also easy to find.

When you have some social tokens in your wallet, you can use them for the following actions.

  • Giving tips to creators and users.
  • Transferring funds between users.
  • Accessing exclusive rewards and content.
  • Voting on a creator’s future plans.
  • Voting on a blockchain platform’s governance changes.
  • Exchanging social tokens for other cryptocurrencies.

It is important to note down that these options may vary from platform to platform. This means that if a certain feature is available in a particular blockchain, it is not necessary that it will also be there to use in another platform.

With that being said, one of the biggest advantages of social tokens that stands tall among all types of platforms is the aspect of investment. When you create social tokens as the moderator of a platform or receive them as the user of one, it provides you with the option to see their value grow overtime.

Seeing that social tokens are a new type of cryptocurrency and quite unconventional in their usage, this investment mindset may not always pay off in terms of significantly high profits. With that being said, it is still something that can provide you with some overtime revenue, especially if you are willing to wait in order to harness these benefits.

Social Tokens Have the Potential to Go Big

Now that you understand what are social tokens and how do they work, it will be easier for you to benefit from these cryptocurrency offerings and the advantages that they bring to the table.

Some of the most popular platforms that support the creation of new social tokens include BitClout, Rally, Fyooz, and Seed Club. But since many new offerings in social tokens keep coming to the forefront, it is important that you keep exploring them, engage with their respective communities, and check their potential in a detailed manner. This allows you to make an informed decision regarding making your investment in terms of your time, efforts, and funds alike.

By keeping this information in mind and taking your time to learn about different social tokens, you can easily reap the rewards of this segment. As a rule of thumb, make sure that if you are purchasing any tokens, you only do so by using money that you can afford to lose. This makes sure that you are not putting your funds at risk while still benefiting from the opportunities that social tokens offer.