We'd certainly see a level of excitement likely topping the craze of the 2021 bull run. The good news is, everyone can launch a token faster and easier than ever (just take a look at Pump.fun's raging success recently).

Creator tokens are nothing new in the crypto space. They behave just like regular ERC-20 tokens and were first introduced as a valid experiment all the way back in 2022 by Mark Schaefer through his $RISE token launch, as a means to both drive community engagement and measure on-chain activity.

The Problem?

If you’ve run KOL marketing campaigns before, you’ll likely agree that estimating their ROI is in itself a challenge. At the end of the day, as a marketer you want to know if the expected on-chain engagement is worth the spend.

And what's worse, web3 content creators have historically relied on Twitter and LinkedIn to build a following, meaning that beyond their fancy follower count, they have no idea who is actually active on-chain.

That’s where creator tokens and community currencies come into play, serving as a solution to convert supporters on-chain and track their engagement across different campaigns. 

Creator Tokens vs. Regular ERC-20 Tokens

One word: Utility.

Creator tokens offer the widest range of utility in the space, similar to Farcaster channels, which took off half a year ago and have since become the next best thing to build fully on-chain communities from the ground up.

What can you do with creator tokens?

Rewards distribution - creators can reward supporters directly through token claims for specific occasions, like brand new partnerships or follower count milestones.

You’ve reached 100,000 followers on X? Launch a campaign allowing supporters to claim 100 $GROW tokens each and then redeem them for physical products on platforms like Perkshop.

Faster follower conversion on-chain - creators can token-gate distribution channels or upcoming mints (that's why we chose Paragraph to host our newsletter). While the idea has been around for years now, NFTs were primarily used as the main way to token-gate publications or discussion groups. You've just built a Telegram channel with 3,000 followers? Use $GROW tokens as a way to restrict access to new supporters who only hold $GROW.

Campaign segmentation - build an on-chain audience and user persona for each distribution channel. Thinking of launching a campaign for your LinkedIn audience? Add a voucher at the end of each post allowing followers to claim $GROW tokens. Pair that with Addressable.io analytics stack and you’ll have a very clear idea about how many memecoin traders follow you. 

Track your converted on-chain audience - is click-through rate an antiquated tracking method for your newsletter? Add a $GROW token code at the end of each edition and measure the collection rate (CR) instead. Creator tokens allow you to track channel-specific engagement and then take it on-chain (leaderboards showcasing the most engaged supporters are all the rage nowadays).

This way, web3 marketers and companies looking to leverage content creators and KOLs to expand their projects' reach can reliably gauge campaign ROI and engage with real, targeted users, rather than relying on inflated follower counts on X.

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Community currencies

Community currencies have emerged as the poster child of the Farcaster craze from a few months ago when the likes of $WOWOW, $DEGEN, $FRAME, $HIGHER, $ENJOY, and many more sprung up like mushrooms after the rain. Following the rise of Warpcast channels that work in a way just like Facebook groups, some of these channels were built around a token or deployed one later on.

What's interesting though is that it's not Farcaster to first bring the concept of community currencies to life, but yes, you guessed it... Reddit.

A Little History Lesson:

• 2019: Reddit tried community currencies and didn't quite make it.

• 2024: Farcaster memecoins are thriving as community currencies.

So why the Difference?

It's partly cultural, but also because wallet-native social platforms make memecoins a seamless part of the user experience. Imagine tipping $DEGEN, claiming tokens via frames, and so much more that's been tried and tested over the past months. (we'll dive into a separate edition on the top growth-friendly Farcaster frames).

The $DEGEN Transformation:

What started as a memecoin with a unique distribution method and truly degenerate community, has evolved into a widespread community currency. $DEGEN is now everywhere because it solved the cold start problem plaguing new apps launching in web3, and sparking a boom in social apps on Farcaster and Base.

◣ Layer3 introduced Loot Boxes, offering daily rewards for users who log in.

💬 MetaCRM launched the “Flyer” feature, allowing projects to send “direct messages" and notifications via web3 protocols like XMTP and Push Protocol.

🤖 CommunityOne unveiled Community Guru, their new AI-powered assistant for community managers and founders.

🤝 Permission now supports image, video, and news search, making it more dynamic than ever to own and earn from your data while searching online.

🏅 Kazm added Badges, providing a fun and motivating way for your members to showcase their achievements within your community.

➡️ Link3 launched the Creator Network, making it easy to find and connect with verified creators and top KOLs in one place.

GrowthBeast Consulting

Alex has launched his growth consultancy tackling full GTM strategies, brand positioning & content marketing, and token-launch LBP strategies.

DM him on Farcaster or Telegram & let’s jumpstart your growth!