When it comes to leveraging cryptocurrencies in new and exciting ways, the concept of “social money” is certainly one of the first to come to mind. In essence, we can think of social currencies as tokenized versions of our time and value, each representing a predefined reward in exchange for the redemption of tokens.
Flash forward to 2019 and a new project called Roll is making it even easier for anyone to tokenize themselves. By pairing an intuitive wallet interface with the ability to add unique rewards – Redeem X tokens for Y output – we’ve started to see a gradual increase in the number of new social currencies.
At the time of writing, there are currently over 50 different social currencies. Roll uses a fixed supply of 10M tokens for each distribution, with 68% (6.8MM) of tokens vested over 3 years (2% are released to the creator each month). 20% (or 2MM) is automatically released to the creator for the exclusive purpose of distributing them within their community. Roll holds 1.2% (1.2MM) to grow the economy and provide initial liquidity for creators.
Social Money Markets
Up until recently, the only way to earn Roll tokens was to be gifted them from the creator themselves. While this was a great way to bootstrap and evangelize the project, there definitely lacked a granular way to acquire social currency from someone you didn’t have a pre-existing relationship.
This past week, Roll announced the integration of Uniswap, effectively allowing creators to fund liquidity pools for their social currencies. For those unfamiliar with Uniswap, the permissionless DEX allows you to quickly and intuitively swap any two ERC20 tokens in a few clicks.
Since it’s launch a week ago, social currencies are slowly being added to the front-end, with blockchain-based artist Connie Digital being the first rollout (no pun intended) through the $HUE liquidity pool.
Social Curation Markets
Using $HUE as an example, the pool currently values 1 $HUE at 0.000023ETH (or roughly $0.003/token). This means that most of the rewards being offered range from $10-20 in price.
What’s unique about Roll is that as a creator grows in popularity, their time becomes more valuable. This means we can effectively assume that the price of their social currency would also increase as scarcity starts to kick in.
Seeing as Uniswap shares their 0.3% trading fees among liquidity pool providers, both creators and dedicated fans have the ability to earn a passive income in the event that a given social currency’s volume increases.
We can, therefore, envision a future in which social currencies start trading similar to equities with entire markets being curated based on creator growth assumptions.
Now, this may be a bit far fetched for where we’re currently at, but the idea is still interesting to consider nonetheless.
In the coming months, we expect to see more creators adding their social currency to Roll’s Social Money Exchange with more features that enable deeper engagement between fans.
In the meantime, be sure to stay up with Roll via their official Twitter.