Explained: What are social tokens and how are they different from NFTs?

Social tokens, considered the next big thing in the cryptocurrency universe, are at the crossroads of many emerging trends, including decentralised autonomous organisations (DAOs) and non-fungible tokens (NFTs). With celebrities like Salman Khan recently launching India’s own social token Gari, mainstream media is taking stock of the new era of tokenised communities. But what is the entire buzz around social tokens, and what makes these tokens valuable? Let’s find out:

Social tokens are a type of cryptocurrency that a brand, community, or influencer can use to monetise themselves beyond the typical means. Many influencers, celebrities, and businesses these days use social media or other media streams to monetise their skills or services. Typically, in such scenarios, the medium or platform that they use, for instance, Facebook or Instagram, shares the revenue and exerts artistic control on their content.

With social tokens, the content creators can eliminate this barrier and bring forward a new principle of ownership in the digital economy.