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💪 If the main purpose of the token is to grant access to token-gated content or crowdfund a project, an NFT will be more suitable. If you want to incentivize collaboration, share governance power, or unlock community interactions, go with a social token. It’s also essential to understand that many communities combine the power of NFTs and Social tokens. You can have both for your community.
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Advantages of Social Tokens:
- Social tokens offer more granularity than NFTs to measure & reward contributors daily. Getting an NFT is like being an investor in a company, whereas getting ST feels more like being an early employee.
- Social tokens are more easy to trade than NFTs. Token holders don't have to wait until someone wants to buy their tokens to sell them; they can simply exchange them for another cryptocurrency at any time, which makes their value less hypothetical than an NFT’s.
- There's no need for fans to get capital to jump into the social token revolution. There is no barrier to entry. Anyone can put in some work and invest their time in an online community and be rewarded with social tokens.
- NFTs create scarcity and reduce opportunities for the free flow of funds across the community... In comparison, social tokens can create new ways for folks to onboard in to the community and to transfer value within and across the community.
Advantages of NFTs:
- Given all the hype around NFTs, people are more keen to buy and use NFTs, while they might still don't get the point of Social Tokens.
- It's easier for Creators to make an NFTs because once created and implemented, the job is (almost) done. With Social Tokens, there's a constant need of improving the processes, paying contributors, implanting new tools etc..
- With NFTs, fans just have to invest & wait until the creator do the work & create a hype around theproject to get return on their investment. With ST, no one will do the work and everyone have to participate daily to make the token more valuable.