AI & Machine Learning

Web3 Development

NFT & Metaverse

Blockchain Development

Blockchain Solutions

Products

Get in Touch
arrow-left Back to ‘Today at Nextrope Blog’

Leveraging Social Media and Influencer Marketing for Tokenization Success

Karolina

29 Jun 2023
Leveraging Social Media and Influencer Marketing for Tokenization Success

Tokenization, a compelling tool in this digital age, has radically transformed the way businesses view and trade their assets. The triumph of any venture into tokenization relies on robust marketing techniques. Among the multitude of strategies, capitalizing on social media and influencer marketing has proved to be a significant game changer. In this article, we will be delving into how marketing plays a pivotal role in the success of tokenization and how exploiting social media and influencer collaborations can maximize the output. Gear up to unravel how these two potent strategies can boost your tokenization endeavor to unprecedented heights within the digital scenario.

Table of Contents

Before reading this article, be sure to read out this post.

Marketing's Significant Influence on Tokenization

Benefits of tokenization, which involves transmuting real-world assets into blockchain-based digital tokens, can only be completely harnessed with a comprehensive marketing strategy. Let's delve into the monumental impact of marketing on the triumph of tokenization.

Raising Awareness and Fostering Curiosity

Identifying target audience : For effective promotional campaigns, it is fundamental to establish the distinct demographic, interests and challenges of your intended audience.

Comprehensive market research: A rigorous assessment of the market renders an understanding of the competitive climate, recognition of trends, and the discovery of valuable insights shaping marketing approaches.

Developing a persuasive value proposition: Communicate lucidly to potential investors, users and stakeholders about the distinct value and merits of your tokenization initiative. Emphasize its problem-solving capacity and its superiority over conventional mechanisms.

Constructing Reliability and Assurance

Value of transparency in tokenization ventures: Open disclosure concerning project specifications, team composition, alliance, and action plan breed trust within the community and prospective investors.

Employing marketing outlets to reinforce trust: Harness different promotional mediums like your website, social media forums, and industry publications to exhibit the authenticity and trustworthiness of your initiative.

Highlighting success narratives and endorsements: Demonstrating practical applications, success chronicles and commendations from contented users or investors aids in building dependability whilst boosting confidence in your tokenization venture.

Through execution of a well-founded marketing strategy, corporations can effectively heighten awareness, stimulate curiosity, and foster trust for their tokenization projects. We will further ascertain how social media alongside influencer marketing could augment these endeavors for successful tokenization in subsequent sections.

Utilizing Social Media for Successful Tokenization

In the current era of global connectivity, social media has become a significant aspect of our everyday lives. Given its extensive reach and engagement capacity, it serves as an efficacious instrument for propagating and securing success in tokenization initiatives. Let's dive into how companies can employ social media to heighten the influence of their tokenization attempts.

Basic Understanding of Social Media Platforms

1. Facebook: Offering an array of active users in billions, Facebook provides a varied user base and sophisticated advertising features to tap into a large audience.

2. Twitter: Renowned for instantaneous updates and succinct communication, Twitter permits companies to interact with specialists in the industry, influential persons, and participate in discussions pertinent to tokenization.

3. LinkedIn: Positioned as a professional networking site, LinkedIn empowers companies to develop thought authority, associate with probable investors, and interact with a targeted audience.

4. Instagram: Characterized by its visual appeal, Instagram is excellent for illustrating tokenization projects via enticing images and films, alluring chiefly to a younger and visually-inclined demographic.

5. Youtube: For longer videos, tutorials, vlogs.

Establishing a Prominent Social Media Standing

1. Formulating a Uniform Brand Tone and Messaging: Build an integrated brand persona and tone across social media platforms to assure consistency in your communication and explicitly express your project's distinctive value.

2. Creating Engaging Material for the Defined Audience: Design informative and aesthetically pleasing material like articles, infographics, films, and live feeds to instruct and captivate your intended audience about tokenization along with its benefits.

3. Promoting User-Sourced Content and Interaction: Actively motivate your community members and followers to contribute their experiences, views, and endorsements concerning your tokenization scheme. This incites interaction and generates a community feel around your label.

Applying Social Media Advertising Features & Targeting Tools

1. Paid Advertisements & Sponsored Content: Employ specific advertising options provided by social media platforms to cater to distinctive demographics and interests related to your tokenization initiative. Sponsored content can further assist in enhancing visibility and reach.

2. Accurate Audience Targeting Based on Demographics & Interests: Capitalize on the advanced targeting features offered by social media platforms for defining your audience based on factors like age, location, profession, and hobbies ensuring content dissemination amongst the most appropriate individuals.

3. Usage of Analytics for Optimization & Tracing ROI: Leverage analytics tools provided by social media platforms for monitoring your campaign performance, recognizing areas requiring enhancement, & evaluating the return on investment (ROI) of your social media promotional endeavors.

By tactically utilizing social media platforms, companies can augment their impact area; interact with their desired audience; cement robust online visibility for their tokenization schemes. In the subsequent segment, we will examine the potential role of influencer marketing towards accomplishing success in tokenization.

Tokenization and Influencer Marketing

The growing field of influencer marketing is becoming a potent strategy for the promotion of goods and services, and contains a great deal of untapped potential for aiding in the success of tokenization projects. Companies can expand their reach and build reliance by forming alliances with influential personalities in the sphere of blockchain and cryptocurrency. The following will examine essential aspects of how influencer marketing has pertinence to tokenization.

Exploring Influencer Marketing

Understanding the Concept: Influencer marketing is the process of teaming up with people who have garnered a massive and significant following in a specific industry or section. These influencers can persuade the sentiments and actions of their audience, making them an invaluable asset for propagating tokenization ventures.

Pinpointing Pertinent Influencers in Cryptocurrency and Blockchain

Discovering Thought Leaders, Industry Gurus, and Influencers: Undertake exhaustive research to pinpoint influencers who are versed in areas like blockchain technology, tokenization, and cryptocurrencies. Probe for individuals who have significant audience size and engagement on platforms such as Twitter, Youtube, and blogs specific to the industry.

Assessing Engagement Levels and Audience Scope: Evaluate aspects such as the influencer’s demographics of the audience, size, and engagement rates through likes, comments, shares. Verify whether their audience correlates with your target customer base so that they have an active follower base.

Formulating Partnerships with Influencers 

Establishing Genuine Connections with Influencers: Approach influencers authentically expressing interest in their work to develop a partnership that benefits both parties mutually. Engage actively with their content, provide valuable insights, thus fostering trustworthy connections based on shared principles.

Collaborating for Content Creation: Work in alignment with influencers for the production of exciting content that enlightens their audience about the benefits of tokenization. This can be achieved by sponsored posts, opinion pieces as guest bloggers, interviews, or collaborative videos.

Endorsements from Influencers: Trust in a tokenization project gains a significant boost if it is endorsed or recommended by influencers. Spurring on influencers to discuss your project candidly amongst their followers will prove beneficial.

Regulatory Compliance: Make sure that your influencers comply with regulatory guidelines and provide complete disclosure concerning their partnerships. Abiding by legal protocols while maintaining ethical standards is paramount to building credibility.

By pairing up with influencers who can extend their reach into wider networks and audiences effectively validates tokenization projects’ effectiveness. An overview of best practices for successful tokenization campaigns utilizing social media and influencer marketing will be discussed subsequently.

Optimal Strategies for Social Media and Influencer Marketing

Businesses must adopt best practices to optimally utilize social media and influencer marketing in their tokenization projects, ensuring enduring success through enhanced engagement and credibility. Below are some critical pointers.

Regularity and Diversity in Content Publications

Maintain a routine posting schedule: Regular dissemination of engaging and valuable material aids in establishing a robust digital footprint across social media platforms. Consistency cultivates trust while keeping your audience engaged.

Variety in content types: Experimenting with an array of content types such as articles, videos, infographics, live streams could cater to diverse tastes and captivate your followers.

Supervision of and Response to User Interaction

Monitor social media interactions: Stay up-to-date with all comments, messages, and mentions pertaining to your tokenization project. An immediate response to user inquiries or feedback demonstrates dedication to customer satisfaction.

Promote and acknowledge user-created content: Bolster community engagement by encouraging users' contribution towards your project-related content and appreciating their input publicly. This tactic amplifies engagement and fortifies the relationship between your brand and followers.

Key Metric Evaluation and Performance Analysis

Specify measurable targets: Key performance indicators like engagement rate, reach, website traffic, conversions should be set in place to gauge the success rate of social media campaigns along with the influencer marketing strategy.

Implementation of analytics tools: By utilizing the analytics provisions by social media or third-party interfaces, you gain a deeper understanding of user patterns, content efficacy, audience demographics that further help optimise your marketing techniques.

Comply with relevant norms: Keep yourself updated on legal norms around tokenization within advertisements in the blockchain or cryptocurrency industry. Maintain this compliance to ensure an ethical approach to marketing.

Transparency in influencer collaborations: Choose influencers who abide by disclosure requirements mandating them reveal their relationships when promoting your tokenization project. Honesty enhances credibility aiding in building trust.

The importance of constant innovation, optimization along staying abreast industry developments is critical for an enduring success in marketing these tokens. The next section concludes with an overview on the significance of both social media based and influencers' marketing within this realm coupled with a compelling call for businesses to incorporate such strategies within their marketing initiatives.

Conclusion

Capitalizing on social media and influencer marketing is a vital step forward for businesses aiming to harness the full benefits of tokenization and elevate their projects in the digital realm. Tokenization projects gain momentum and achieve success through these strategies by tapping into a broader audience base, building authenticity and sparking curiosity. It involves adherence to best practices such as posting content regularly, engaging actively, and conforming to regulations. This efficient marketing strategy optimization promises astonishing outcomes.

Nextrope Tokenization Launchpad Platform

Nextrope Launchpad Platform is a White Label solution in a Software-as-a-Service model that helps you launch your project within a month and fundraise with Initial Coin Offering (ICO) or Security Token Offering (STO).

Our platform allows you to participate in the broad financial market of digital assets. Expand your reach and find investors globally. Tokenize your project and start raising capital within a month!

Tagi

Most viewed

Never miss a story

Stay updated about Nextrope news as it happens.

You are subscribed

Aethir Tokenomics – Case Study

Kajetan Olas

22 Nov 2024
Aethir Tokenomics – Case Study

Authors of the contents are not affiliated to the reviewed project in any way and none of the information presented should be taken as financial advice.

In this article we analyze tokenomics of Aethir - a project providing on-demand cloud compute resources for the AI, Gaming, and virtualized compute sectors.
Aethir aims to aggregate enterprise-grade GPUs from multiple providers into a DePIN (Decentralized Physical Infrastructure Network). Its competitive edge comes from utlizing the GPUs for very specific use-cases, such as low-latency rendering for online games.
Due to decentralized nature of its infrastructure Aethir can meet the demands of online-gaming in any region. This is especially important for some gamer-abundant regions in Asia with underdeveloped cloud infrastructure that causes high latency ("lags").
We will analyze Aethir's tokenomics, give our opinion on what was done well, and provide specific recommendations on how to improve it.

Evaluation Summary

Aethir Tokenomics Structure

The total supply of ATH tokens is capped at 42 billion ATH. This fixed cap provides a predictable supply environment, and the complete emissions schedule is listed here. As of November 2024 there are approximately 5.2 Billion ATH in circulation. In a year from now (November 2025), the circulating supply will almost triple, and will amount to approximately 15 Billion ATH. By November 2028, today's circulating supply will be diluted by around 86%.

From an investor standpoint the rational decision would be to stake their tokens and hope for rewards that will balance the inflation. Currently the estimated APR for 3-year staking is 195% and for 4-year staking APR is 261%. The rewards are paid out weekly. Furthermore, stakers can expect to get additional rewards from partnered AI projects.

Staking Incentives

Rewards are calculated based on the staking duration and staked amount. These factors are equally important and they linearly influence weekly rewards. This means that someone who stakes 100 ATH for 2 weeks will have the same weekly rewards as someone who stakes 200 ATH for 1 week. This mechanism greatly emphasizes long-term holding. That's because holding a token makes sense only if you go for long-term staking. E.g. a whale staking $200k with 1 week lockup. will have the same weekly rewards as person staking $1k with 4 year lockup. Furthermore the ATH staking rewards are fixed and divided among stakers. Therefore Increase of user base is likely to come with decrease in rewards.
We believe the main weak-point of Aethirs staking is the lack of equivalency between rewards paid out to the users and value generated for the protocol as a result of staking.

Token Distribution

The token distribution of $ATH is well designed and comes with long vesting time-frames. 18-month cliff and 36-moths subsequent linear vesting is applied to team's allocation. This is higher than industry standard and is a sign of long-term commitment.

  • Checkers and Compute Providers: 50%
  • Ecosystem: 15%
  • Team: 12.5%
  • Investors: 11.5%
  • Airdrop: 6%
  • Advisors: 5%

Aethir's airdrop is divided into 3 phases to ensure that only loyal users get rewarded. This mechanism is very-well thought and we rate it highly. It fosters high community engagement within the first months of the project and sets the ground for potentially giving more-control to the DAO.

Governance and Community-Led Development

Aethir’s governance model promotes community-led decision-making in a very practical way. Instead of rushing with creation of a DAO for PR and marketing purposes Aethir is trying to make it the right way. They support projects building on their infrastructure and regularly share updates with their community in the most professional manner.

We believe Aethir would benefit from implementing reputation boosted voting. An example of such system is described here. The core assumption is to abandon the simplistic: 1 token = 1 vote and go towards: Votes = tokens * reputation_based_multiplication_factor.

In the attached example, reputation_based_multiplication_factor rises exponentially with the number of standard deviations above norm, with regard to user's rating. For compute compute providers at Aethir, user's rating could be replaced by provider's uptime.

Perspectives for the future

While it's important to analyze aspects such as supply-side tokenomics, or governance, we must keep in mind that 95% of project's success depends on demand-side. In this regard the outlook for Aethir may be very bright. The project declares $36M annual reccuring revenue. Revenue like this is very rare in the web3 space. Many projects are not able to generate any revenue after succesfull ICO event, due to lack fo product-market-fit.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.

Tagi

Quadratic Voting in Web3

Kajetan Olas

04 Dec 2024
Quadratic Voting in Web3

Decentralized systems are reshaping how we interact, conduct transactions, and govern online communities. As Web3 continues to advance, the necessity for effective and fair voting mechanisms becomes apparent. Traditional voting systems, such as the one-token-one-vote model, often fall short in capturing the intensity of individual preferences, which can result in centralization. Quadratic Voting (QV) addresses this challenge by enabling individuals to express not only their choices but also the strength of their preferences.

Table of Contents

In QV, voters are allocated a budget of credits that they can spend to cast votes on various issues. The cost of casting multiple votes on a single issue increases quadratically, meaning that each additional vote costs more than the last. This system allows for a more precise expression of preferences, as individuals can invest more heavily in issues they care deeply about while conserving credits on matters of lesser importance.

Understanding Quadratic Voting

Quadratic Voting (QV) is a voting system designed to capture not only the choices of individuals but also the strength of their preferences. In most DAO voting mechanisms, each person typically has one vote per token, which limits the ability to express how strongly they feel about a particular matter. Furthermore, QV limits the power of whales and founding team who typically have large token allocations. These problems are adressed by making the cost of each additional vote increase quadratically.

In QV, each voter is given a budget of credits or tokens that they can spend to cast votes on various issues. The key principle is that the cost to cast n votes on a single issue is proportional to the square of n. This quadratic cost function ensures that while voters can express stronger preferences, doing so requires a disproportionately higher expenditure of their voting credits. This mechanism discourages voters from concentrating all their influence on a single issue unless they feel very strongly about it. In the context of DAOs, it means that large holders will have a hard-time pushing through with a proposal if they'll try to do it on their own.

Practical Example

Consider a voter who has been allocated 25 voting credits to spend on several proposals. The voter has varying degrees of interest in three proposals: Proposal A, Proposal B, and Proposal C.

  • Proposal A: High interest.
  • Proposal B: Moderate interest.
  • Proposal C: Low interest.

The voter might allocate their credits as follows:

Proposal A:

  • Votes cast: 3
  • Cost: 9 delegated tokens

Proposal B:

  • Votes cast: 2
  • Cost: 4 delegated tokens

Proposal C:

  • Votes cast: 1
  • Cost: 1 delegated token

Total delegated tokens: 14
Remaining tokens: 11

With the remaining tokens, the voter can choose to allocate additional votes to the proposals based on their preferences or save for future proposals. If they feel particularly strong about Proposal A, they might decide to cast one more vote:

Additional vote on Proposal A:

  • New total votes: 4
  • New cost: 16 delegated tokens
  • Additional cost: 16−9 = 7 delegated tokens

Updated total delegated tokens: 14+7 = 21

Updated remaining tokens: 25−21 = 425 - 21 = 4

This additional vote on Proposal A costs 7 credits, significantly more than the previous vote, illustrating how the quadratic cost discourages excessive influence on a single issue without strong conviction.

Benefits of Implementing Quadratic Voting

Key Characteristics of the Quadratic Cost Function

  • Marginal Cost Increases Linearly: The marginal cost of each additional vote increases linearly. The cost difference between casting n and n−1 votes is 2n−1.
  • Total Cost Increases Quadratically: The total cost to cast multiple votes rises steeply, discouraging voters from concentrating too many votes on a single issue without significant reason.
  • Promotes Egalitarian Voting: Small voters are encouraged to participate, because relatively they have a much higher impact.

Advantages Over Traditional Voting Systems

Quadratic Voting offers several benefits compared to traditional one-person-one-vote systems:

  • Captures Preference Intensity: By allowing voters to express how strongly they feel about an issue, QV leads to outcomes that better reflect the collective welfare.
  • Reduces Majority Domination: The quadratic cost makes it costly for majority groups to overpower minority interests on every issue.
  • Encourages Honest Voting: Voters are incentivized to allocate votes in proportion to their true preferences, reducing manipulation.

By understanding the foundation of Quadratic Voting, stakeholders in Web3 communities can appreciate how this system supports more representative governance.

Conclusion

Quadratic voting is a novel voting system that may be used within DAOs to foster decentralization. The key idea is to make the cost of voting on a certain issue increase quadratically. The leading player that makes use of this mechanism is Optimism. If you're pondering about the design of your DAO, we highly recommend taking a look at their research on quadratic funding.

If you're looking to create a robust governance model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure that your DAO will stand out as a beacon of innovation and resilience in the long term.

Tagi