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Blog> Why tokenize your community

Why tokenize your community

Not only can new tokenized communities be created, but also tokens can be issued to existing communities. Tokenization gives communities a number of advantages:

The ability to raise a large amount of funds.

When participants donate to the community, they get almost nothing in return. With tokenization, they get a cut from the community in the form of tokens . This can increase the amount of funds raised many times over.

Participants become co-owners

Which increases their loyalty to the community. As it increases their influence on the community, and also allows them to directly benefit from its development. Because the more the community develops, the greater the demand for its tokens and the higher their price/value.

Society becomes platform-independent (not tied to any site)

And the register of participants is stored on the blockchain. That allows you to simultaneously use several WEB 3.0 sites with the ability to authorize by crypto-purse.

Any participant can create additional useful online service for the community. And he does not need to spend time of main website's developer for that. After all, the user base is publicly available and it is possible to verify/authorize them on the sites by their crypto wallets.

The main value of the community is the member base and their connections. And this main value is stored in blockchain in the form of tokens. Therefore, participants who create new online services in addition to your site do not reduce the amount of value under your management, but rather increase it. Because they are not competing with you, but empowering your community.

Scaling up

All of the above allows you to significantly scale your community. As there is more money, more proactive member-owners, and more online services.

In some ways, community tokenization is similar to an IPO. It too allows the community to raise more money, become more mainstream, and reach a new level of scale. Which can ultimately create a network effect leading to multiple times the value/utility of the community.

Better to have 1% of a community of 1 million members than 100% of a community of 100!