NFT Creators: A Community Token Case Study
Community Tokens are an emerging asset category similar to fan tokens, purposed with enhancing community management capabilities while creating a more immersive user experience. Community Tokens create a direct link between holders and creator, and provide a vehicle for value transfer. Within the NFT space this direct link has proven an invaluable medium for engagement, whereby a project creator can airdrop rewards, incentives, and other activations to create ongoing value for an asset holder. Notably, the Bored Ape Yacht Club has begun distribution of their highly anticipated APE Coin. With its white label Community Token solution, CONNECT2CRYPTO now affords any community builder the opportunity to design, create, and distribute their own coin to use within their community. A platform currency, a reward token, access to real world activations — in this case study we will explore a few of the many possible ways Community Tokens can be used.
NG, NFT Creator
NG is an NFT creator focused on anime inspired artwork. Having observed the surge in popularity of NFT-based art, NG decides to take their digital works and begin issuing them as NFTs. NFTs have developed a strong community component, with many of these groups utilizing Discord. Discord is a powerful application primarily used by gamers, and was quickly adopted by NFT projects. However, NG realizes that despite Discord’s robust feature suite, the application itself is not crypto native. Seeking a more focused approach, NG creates a community on CONNECT2CRYPTO, an emerging community building application built specifically for blockchain. As users start to roll in, NG begins to consider a community token.
Voting
Understanding the democratic nature of blockchain, NG aims to involve their community in certain decision making processes, such as the direction for new artworks, collaboration ideas, and NFT characteristics such as collection # and traits. To facilitate this, NG imbues their NG Community Token (NGC) with voting capabilities. Each token is afforded one vote, rewarding token holders with the ability to influence the project direction. NG is now tapped directly into community feedback, and is able to best serve their community with this knowledge.
NG wants to create a level playing field but still reward larger token holders for their support. As such, they introduce quadratic voting, in which additional votes require increasingly more tokens.
Access + Rewards
NFT series such as Bored Ape Yacht Club, Doodles and Full Send Meta Cards have turned existing ideas of memberships and access on their head. These digital collections grant exclusive access to events, merchandise and more to holders of the collection. NG loves the idea of exclusivity, but doesn’t want to have such a high barrier to entry when it comes to their events. As such, NG sets a price tag of 1000 NGC to access their art exhibits.
Holders of NG’s artwork receive weekly payouts of NGC, allowing them to passively accrue tokens. This mechanism rewards holders of NG’s works, but allows the opportunity for newcomers to enter the ecosystem, purchase NGC, and access events and other activations. With NFTs hitting the price tags that they do, this enables community members to get a bit more information and experience the artwork before making the commitment to dive in.
Payments & Value Transfer
NG wants to drive more utility to their NGC token, and decides to exclusively accept NGC for specific works of upcoming collections. NG indicates that 10% of upcoming collections will only be purchasable with NGC, with half of the amount being burned upon purchase. Depending on the success of these sales, NG considers increasing the percentage of collections that will be NGC payable only.
This enhanced utility prompts more community members to begin using NGC as an alternative currency, and it slowly becomes the primary vehicle for peer-to-peer value transfer between community members.
Connect With Your Community the Way You Want
Community is everything, especially when it comes to digital assets and NFTs. CONNECT2CRYPTO aims to empower community builders to connect with and manage their communities they want to. The Community Token white label solution allows builders to easily create tokens and design them with as much or as little functionality as they wish, creating a direct link between creator and community members, and facilitating dynamic information and value transfer.
Want to learn more about Community Tokens? Click here.
