Where does the value of the personal token come from?
This is a question that has been asked by most people that are considering buying any token out there. Many DeFi tokens drive their value from either governance or participation in profits from the protocol. Today we want to announce the new way of driving value for social tokens — Token Threshold.
Social tokens are an important and revolutionary tool that will allow communities to organize, coordinate and create incentives on a global scale. As most social tokens lean toward governance tokens we would like to introduce a new tokenomics based on access to the content and community of the creator.
Sapiency is focused on personal tokens, where influencers can issue, distribute and manage their personalized tokens. But Sapiency mainly focuses on creating a social platform where influencers can publish and distribute content that is primarily created for their tokens holders.
Introducing Token Threshold
Every time influencers post on their socials like Instagram, YouTube or Facebook, they add value to the platforms. We believe that we have found a way for influencers to build their own value every time they create valuable content. Value they create is captured in the price of their personal tokens.
Token Threshold is the amount of tokens required in order to be able to consume the content.
It works like this.
- Influencer creates a post — It can be a photo, video or audio (like podcast or a song)
- Set the Token Threshold — it’s the amount of tokens that the follower has to own in order to be able to consume the content. E.g. If you want to watch this video, you need to have at least 1000 TOK.
- Users that have fewer tokens than a Token Threshold need to buy more tokens of this influencer to be able to watch the video.
This mechanism has many advantages for creators and holders of their tokens.
Token Threshold has some other interesting consequences for content discovery and community management, but it’s a topic for another article.