The COVID-19 pandemic, along with other recent events, has highlighted the need for a fully digital economy, which has led to the emergence of Metaverse ecosystems, Web3 platforms, and the use of digital currencies.
For example, the government of Ukraine recently reached out to the crypto community on Twitter and asked for donations in Bitcoin (BTC), Ether (ETH), and Tether (USDT). Irreplaceable tokens, or NFTs, have become widespread as artists and creators around the world discover new forms of revenue generation through these models. Although these uses are innovative, they also illustrate the idea that early-emerging blockchain-based concepts often take years to reconnect with ordinary society.
Social Icons in 2022
This also applies to social tokens or tokens issued by individuals and communities to create interaction. Although social tokens were expected to be the next big trend in the crypto sector in 2020, they seem to be gaining momentum this year due to a surge of interest from non-crypto-natives.
Ian Beresville, token design specialist at Outlier Ventures, a venture capital firm that supports the development of new technologies, told Cointelegraph that social tokens are redeemable, ERC-20 tokens that can be used for more than just financial purposes. “For example, social icons can be used to reach certain communities, for example on Discord. Since they are less financially oriented, social tokens are within the reach of the majority, so we are seeing a growing interest,” Pariswell explained. He added that social tokens can have many different purposes, and noted that these digital tokens can be used by creators interacting with Fans or communities to raise awareness of specific causes.
In addition, social tokens are used to help creators and communities access Web3 platforms that offer decentralized models and incentives for community participation. Andrew Berkowitz, CEO of Socialstack, a social token issuance platform built on Ethereum, Polygon, and Celo, told Cointelegraph that Socialstack serves non-crypto communities to help issue social tokens that enable development in the Web3 ecosystem. “At Socialstack, we understand that 99% of people in the world are not crypto-natives. We believe that people need a platform where they can simply use email to take advantage of the power of Web3,” he said.
To put this in perspective, Berkowitz explained that Socialstack recently helped Project Zero, a nonprofit organization dedicated to protecting the oceans from climate change, and launch a social icon to create a “valuable ecosystem that benefits both the planet and its participants.” Project Zero founder and CEO, Michelle Clark, told Cointelegraph that their PZero social token allows community members to earn rewards by completing certain actions.
The Sea, captured by Project Zero ambassador and photographer Ben Toward. Source: Project Zero
For example, Clark noted that Project Zero’s already existing user base is close to a million people. Users can now be rewarded with PZero by helping to raise awareness of specific issues. “This can be further enhanced by an ambassador with a large following, a brand partner, a university artist, or a news publication that is causing an increase in the millions or even hundreds of millions, and we have done many activations that cross the billion,” he said. . Clarke also explained that the main goal that Project Zero aims to achieve with its social code is to shift participants’ short-term attention (often seen in times of major crisis) to long-term involvement in the organization.
Jake Beaumont Nisbet, Founder and Social Director of Project Zero, told Cointelegraph that Project Zero was created eight years ago and has been decentralized by design as the project consists of a scientific community located around the world. With this in mind, Beaumont-Nesbitt explained that Project Zero is naturally in keeping with the ethos of Web3, where the organization has always existed without central platforms or third-party intermediaries. By adopting the Web3 model by including social icons, Beaumont-Nisebet notes that Project Zero is now better able to interact with the community. He said:
Web3 interoperability allows an organization to scale significantly while creating value for its members. Going back to certain purposes today is not just about throwing money at the bank hoping that it will help.