The fractionalization of NFTs will lead to better social tokens

Early versions of token distributions have led to unsustainable dynamics wherein speculators are rewarded instead of those who are adding consistent value to networks through actual usage.

- gives ownership to users, incentivizes them to stay and invest moreCons of “social tokens”- puts pressure on creators to continue delivering value for token holders (akin to an “early IPO”)

If you look at the social DAO landscape, you’ll see communities with different social token models. Some, like FWB, use a fungible social token to gate community access. Many emerging PFP-based communities like BAYC use NFTs as the primary community gating mechanism. Whether fungible or non-fungible, social tokens in DAOs usually represent three di... See more