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Token Engineering is an emerging engineering discipline focused on holistic systems design and the theory, practice and tools used to design and verify token economic systems.
Token engineering is the backbone of many decentralized applications since it can be used it to power dApps.
What does it mean for a community to be tokenized? Tokenization implies that a community is using a token (digital assets that are built on top of an existing blockchain) as its primary means of coordination. It can be used to incentivize and reward members (those who agree to participate to/in the economical, cultural and governance layers of a community) for their contributions.
When to use
Building a community stands alone by bringing together people that share a common belief, the key difference? Tokenized communities at-large adopt the token as a means of organizing around the brand in any meaningful way:
- Can add a reputational layer.
- Allow the creation of incentive models that drive community vibrancy encouraging participation, co-creation and value.
- Can be used as a reward system to acknowledge and reward contributions.
- Facilitate governance and participatory practices.
- Empower a community’s micro-economy to access the community’s utility and benefits.
How to use
- Onboarding is the starting point to welcome newcomers. Prepare documentation with the process to enter the community. It builds awareness and transparency on the actions or steps to follow for making it accessible to connect with the community.
- Acknowledge each other is a key principle for Community Building and providing a space for everyone’s visibility and acknowledgment to people is part of promoting it.
- Choose your channels, where are the conversations in your community?
- How they can use the community token to participate in the decision-making process? How will you return value to the most committed participants?
- Choose your values. What represents your community’s sociocultural layer? Aligned value communities are stronger.
- Measure all results. Select the best social KPIs that can help you measure the organization’s goals. Specify the level of participation you anticipate from your community.
What you get
Communities have always proven to be an effective method of engaging potential members and increase co-creation.
Token incentives can be a crucial part of building Web3 communities. There’s an incentive for mutual growth.
The most valuable community tokens will be widely used to coordinate the development of a common goal across organizations.
As the ecosystem matures, communities will recognize that leveraging a shared network token is mutually beneficial for participating groups.
