Social Tokens as a Way to Empower DeFi: DUCKIES
Introduction
Being blockchain a social technology, it has been capable of bringing decentralization and people to cooperate in a trustless and permissionless way.
Moreover, the blockchain space has brought new ways of developing projects, doing marketing and creating value.
DeFi in particular has witnessed these features above, and it took advantage of tokens as a main means to distribute value and utility through tokenomics and mechanisms design.
That said, these tokens not only served more financial-related purposes, but also more social, business and political ones, like could be Governance which should be responsible for project developments.
By generating utilities, some tokens began to switch from capturing value to creating it.
This, however, is still a hard objective to accomplish and many projects died trying. Many others tried the path of liquidity mining which has proved to be unsustainable overtime.
We have understood how tokens need to be well-projected and designed in order to offer valuable experiences, products and services. Social Tokens represent an experiment of what blockchain technology and Web 3.0 have been capable to offer, and with that all the benefits that could derive both for teams and institutional entities and retail users.
Now, Social Tokens are a tool for social coordination and alignment within an ecosystem (macro) or a project (micro), and they also take advantage of incentivization in order to achieve that.
In DeFi above all, incentives are crucial, even if those should maintain a certain balance in the system rather than being extreme and causing situations like Mercenary Liquidity.
Micro and Macro economics became a fundamental pillar in the crypto world and they are now a metric used for rating a project, a token or both.
Messari claimed that social tokens, through some innovative novel Token Distribution Mechanism Models that may arise, could act as a catalyst for the next bull market.
DUCKIES: The Yellow Social Token Project
Duckies is an “NFT & token-based reward platform built on Polygon. It is designed to deepen the connection and boost the engagement of the powerful and rapidly growing Yellow Network ecosystem”.
Click “Here” to get your first 10k $DUCKIES tokens!
I have already covered here on Medium what Yellow Network is and why it is a good solution within DeFi that leverages Layer3 and State-Channels technologies.
$DUCKIES, the reward token, helps bootstrapping Yellow Network, and faces new paths for community growth, involvement, marketing and more data-driven feedback that may support the team and the community as well, to make some adjustments on both the Yellow and DUCKIES project.
The two projects naturally cooperate between each other, and they are therefore in a sense connected. $DUCKIES holders in fact are able to exchange their tokens for $YELLOW on the Duckies Platform and benefit therefore from the main protocol token, whose utilities were explained in my previous article. Furthermore, $DUCKIES can be exchanged for unique NFTs, Yellow Merch or simply swapped in the token you prefer.
$DUCKIES has a total supply of 100b and it rewards all users and contributors for their commitment and help within the Yellow ecosystem.
The Tokens can be earned in several ways:
- Social interactions
- Completing quests: there are many actions and Quiz you can do in order to earn $DUCKIES. To stay up to date on these opportunities, Yellow has a dedicated DUCKIES telegram group: https://t.me/yellow_org
- Participating in contests & community initiatives: by owning a DUCKIES NFT for example you will be able to join events & community calls.
- Inviting friends and fellow crypto enthusiasts: Yellow in fact has decided to leverage referrals for its social token as a way to make people discover DUCKIES and Yellow itself. Through referrals you can earn from 20% to 500% for each member who joins using your personal referral link and the more people join the Yellow network, the more rewards you get. Finally, If your friends invite their pals, you’ll get even more bonuses!
Conclusion
In this article we have seen how Social Tokens could really enhance the whole blockchain and DeFi space and how Yellow has designed its own in order to reward and align the community into a common vision.
Social Tokens embed a lot of game theory and incentivization and a well projected mechanism model could be able to boost a project adoption and therefore revenue. Micro economies could finally merge into macro ones and lead to further new systems that will change our behaviors (like social technologies have proved to do) and that may benefit users and projects.
New to trading? Try crypto trading bots or copy trading
