Social tokens are an intriguing category of cryptoassets.
Using social tokens, creators and entrepreneurs can unlock new monetization opportunities leading to a tremendous amount of value being created by this emerging asset class.
Generally, social tokens can be broadly categorized:
Personal - issued and controlled by a primary individual
Community - issued and controlled by a group, often managed by a DAO
Social Platform - tokens that govern a platform that facilitates social token issuance and exchange
Several social tokens which have slowly developed into communities possess circulating market capitalizations of several million dollars.
Nearly all personal and community tokens (and their subsequent networks) are built on top of issuance platforms, some with their own social tokens.
As the social token landscape develops there will be lots of value captured by token-based networks along with adjacent businesses that support social tokens.
Crypto realigns the connection between creators and their followers into a symbiotic relationship.
While many social tokens will undoubtedly fail, however, a small subset will create immense value for creators and their early followers. messari.io/article/the-so…
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Over 2 million compressed NFTs have been minted in just a few weeks.
Enabled by @metaplex's new NFT compression standard (Bubblebum), Compressed NFTs offer greater scale to NFT minting and open up a new array of use cases for Solana NFTs.
But what are compressed NFTs?
Normal Solana NFTs have metadata stored in on-chain accounts
Compressed NFTs group the state of many NFTs into a merkle tree and hash the merkle root on-chain with each leaf of the tree (e.g. NFT) verifiable on-chain while the metadata is offchain
Compressed NFTs allow minting NFTs at scale while securing them cryptographically on-chain.
Importantly, compressed NFTs can be redeemed/decompressed in which case the NFT is removed from the offchain merkle tree and then exits on-chain as a normal Metaplex NFT.
The magic of NFTs as an asset class is that the underlying assets are composable. But, this effortlessly destroys the moat of secondary trading liquidity that marketplaces have relied on to succeed.
NFT marketplaces must find proprietary liquidity that lives on their platforms, that drives users, and is unique.
Fluid secondary liquidity means marketplaces & NFT social networks must compete in the streets of the bazaar where trading occurs and not behind their castle moats.
Artists have earned over $5m in earnings on Sound Protocol.
Let’s take a brief look at the state of @soundxyz_ Protocol & Marketplace 🎧 🧵 sound.xyz
Sound Protocol by the numbers:
•$10m in NFT volume (4.4m Primary and 5.7m Secondary)
• Minted over 80,000 music
• Over 400 talented artists
• Nearly 13,000 collectors
Feb 2023 was Sound’s best month ever in terms of music NFTs minted.
The record month was aided by the launch of Sound’s curator rewards which enabled fans to earn 5% on primary mints generated through their referral links and playlists.
1) Network-driven protocol GTM focuses on building a protocol with broad distribution and permissionless access, and then evangelizes others to build on top of the network.
Every so often, a new playbook for token distribution emerges:
• Liquidity Mining (e.g. Compound)
• Retroactive airdrops (e.g. Uniswap)
• Infra setup (e.g. Helium)
Blur created the next token playbook: Sequenced Airdrops
Disclosure: We're not investors in Blur. But given our thesis on user ownership, we think the Blur case study holds interesting lessons for all crypto projects seeking to turn users into owners.
But first, how did Blur's sequential airdrop work?
• Airdrop 0: Rewarded social referrals to attract traders to its platform
• Airdrop 1: Rewarded ecosystem trading activity
• Airdrop 2: Rewarded listings to build supply
• Airdrop 3: Rewarded bidding to spur the demand side