An overview of the user tokens, token economy, use case, and resources to benefit from.
Any user is able to quickly create their own crypto token/s for a myriad of purposes.
Tokens and DAOs are being created to achieve purposes as diverse as investing, community networking, governing decentralised applications and driving social impact. Tokens represent a mind shift in how business can be conducted. It is a system of digital cooperation, where ownership is shared for an economic, political or social purpose. Incentives to cooperate are built into a DAO by design.
By combining the utility of decentralised exchanges with the upside of the creator economy Unit Network offers a technology capable of sustained positive impact for individuals, businesses and the wider economy.
- Tokenise Everything: Seamlessly create and manage a token based ecosystem to share the value captured by an industry, city, business, brand, personal identity, idea, or anything else one can imagine
- Ownership is Caring: At-scale shared communities set the stage for widespread adoption of tokens to power the global economy
- Artists & Creators: Own your work, remove middlemen and share your success
- Investment: Pool funds and facilitate participant investment activity with on-chain records
- Governance: On chain management of an online community and resources
- Charities / Non-profits: Transparently allocate funds and verify donor contributions
- Start-ups: Raise and manage capital transparently and reward early adopters
- Real Estate: Crowdfund property development costs and offer token holder incentives
- Special Purpose Acquisition: Pool funds to buy a unique item or other companies / DAOs
- Social: Networking and coordination with other like-minds without financial incentive
- Impact / Task: Pursue a specific communal objective and facilitate global participation
How anyone can use community tokens to drive more value.
In previous years, before the advent of blockchain technology powering Web3, there has only been one way to increase and drive value to a craft, business, etc.
In the case of an up-and-comer musician, it involves toiling the paths of creating several pieces of content and distributing it across different social groups, hoping to build an atomic network of audiences that would love their music, and, ultimately, signing a deal With a label. These steps are the route nearly all successful musicians have taken to reach stardom and hit the spotlight.
For a business owner, it's a similar process. It starts with identifying a product that the market needs or wants, selling to the most accessible buyers, following next is finding a way to distribute the product to reach a more significant number of people that will buy. Just like the upcoming musician, most businesses depend on hope.
On the creator's end, practically everyone is, such as YouTube creators, Twitch creators, and Instagram influencers and creators. For them, it’s building content around a particular niche, getting a large number of followers, in some cases, leveraging on other social media platforms and monetising from there.
In each of these stories, these individuals are similar in their path to monetisation or hitting the limelight. What's that? Monetisation is an afterthought; it comes after much effort in creating and accepting their content by a vast majority.
This is how every business or craft in the real world operates. The downside to this is that it can be costly to operate. Think of it; an up-and-comer musician will need several instruments to make good music, and that alone are expenses that might be hard to fund.
Still using the case of the artist, the other problem is this model only rewards the musician when they hit success; there isn't a way to return value to the audience who have supported them from day one.
This model though it has been effective across board, it doesn’t define the most appropriate ways to do things.
The introduction of the blockchain and cryptocurrency has led to many innovations that will change the landscape and bring a different model that guarantees higher chances of success, increase different monetization strategies and also introduce ways for fans and audiences to benefit more than what they have now. This particular innovation is regarded as the “Token community”
A Token Community simply defines how a community can drive more value and added utility through token. In a nutshell, rather than having to put monetization as the last thing when building and bootstrapping, or fans not having any benefit of being loyal support or fans.
To demystify this further let’s go over what the having “token community” would mean for the up-and-comer musicians and also for a creator by using real world examples.
Story One: This is about a Daniel Allan who harnessed the power of a token community in scaling through the tedious process of having other musicians like the one above had to experience. He didn’t create multiple contents, spend thousands of dollars to purchase instruments, and wait to get a record label signing, he took a different path.
Here’s how Allan harnessed the power of a token community. He decided to raise funds for his new “Overstimulated” using a platform called mirror. To achieve this, he sold a token associated with a token. In his words, Allen said “I’m seeking a 20 ETH advance in exchange for 50% of the artist share of my next EP ‘Overstimulated’.”
What followed next was that Allan garnered the support of many and eventually raised 49.5 ETH, approximately 150% more than he planned for.
To summarize all this, not only did he raise enough money to fund the production and post-production of Overstimulated, he built an atomic network of audience, who got 50% of whatever he made from the Album and dedicated fans who will promote his work across to many more listeners.
Allan later wrote on his mirror.xyz page that “For the first time, I owned all of the music that I was putting out and people were assigning an actual value to my art.”
This story depicts how Daniel Allan got to monetize early, skipped several tedious process and uncertainty and perhaps the most importantly, fans who supported Allan dream could benefit from the process.
Story 2: What it Means for Creators. Before digging deep here, let’s go over how the creators model works. It involves creating content, building a large followers who are interested, and then monetization kicks which either comes as money received from the platform, like YouTube for hosting ads on your video; or you can rely on other means like, selling a physical product online with your niche, having a subscription based community, brands sponsorship and promotion, etc.
With a token introduced, creators have a better opportunity to monetize and fans get to monetize and own a fraction of the creators work.
Here’s How it Works: Assuming the creators is a YouTuber, who just created an exclusive email, and the only way to access is from paying a monthly subscription, rather than going through usual method of having them pay in their local currency, you can switch that to only holders of your token will get special access to the email. This works better, because now fans feel more connected and dedicated as per ownership, but also, you get to benefit from the increase in token value. This doesn’t limit the creator to making money through sponsorship and other methods, instead, it adds to it.
Other Advantages Attached to Having a Token Are:
- 1.Once a token is launched, it can be converted to other forms of money, like dollar, bitcoin, ether, etc.
- 2.Tokens can be used for transactional purposes like purchasing a good or service.
- 3.It can be used as a reward system to incentivize dedicated community members or offer discounts and coupons for token holders who meet a certain criteria.
Community tokens are scarce with just a limited number of the token issued to the public;there’s accessibility, meaning creators and community members can get to use it anywhere in the world, and finally; it ownership is transparent and transactions with it can be tracked on the blockchain ledger, which is publicly available.
This entire process completely works for any Web 3.0 creator, Decentralized Autonomous Organizations, Startups, Business and more.
Advantages From Having A Community Token
- 1.Dedicated Community Member: one clear advantage that comes with introducing a community token into your brand, business, DAOs, or community as a creator is that members who own the token now become stakeholders and investors. Rather than the one-way approach that’s previously experienced by members who only consume a creator's content, now there’s a paradigm shift as members become investors and stakeholders, they are more dedicated to the progress of the brands, businesses, and ensure it succeeds—there’s no passive bystander here.
- 2.More Definitive Path To Success: Unlike before when creators spend a huge chunk of effort and time in creating free contents, the token model paves a way for creativity to achieve product market fit—meaning, creators can build a small group of fans who believes in the project earlier. In the case of Daniel Allen, only 86 people were involved in the crowd funding process to make it a success. This cuts the time needed to achieve success. With this, creators don’t need large followers, all that’s needed are the small believers. This is the role of a community token, it paves the way for success.
- 3.There’s Digital Scarcity: The value of a community begins to increase overtime as it gains popularity. How? Since there is a limited supply of community tokens, as a creator or its products get more attention, either through marketing, media, dedicated members etc., the value of the token will increase because the demand becomes higher than the available supply.