Token-curated registries (TCRs) incentivize users to stake tokens to curate decentralized lists of reliable information, for instance, essential project websites. TCRs gained a lot of popularity in Ethereum’s ecosystem some years ago. However, lately, they have apparently gone underground as other revolutionary concepts such as decentralized finance (DeFi) take center stage.
With that in mind, a closely related concept to TCRs has attracted substantial attention from the crypto community this year: token-curated communities (TCCs). These are “communities with tokens” that make good use of tokens, where a minimum amount must be staked at all times to retain membership status in these communities, to create and deliberate superior membership rights.
For instance, such rights might be access to a limited number of a members-only chat room where other experienced cryptocurrency users share their ideas with other members to deliberate. Better still, these privileges might give access to special events or any different sort of incentives that could be provided to the token holders.
Remarkably, most of the TCCs we have experienced this year run on the Collab.Land bot, which offers a “user-friendly, tokenized, community management system.” This automated concierge service enables TCC members to directly collaborate with their tokens in community hubs, just like Discord and Telegram.
Therefore, Collab.Land is just a management tool. It is the work of TCC creators to mint the underlying assets, and in this regard, there are a few practical options currently. Social money project Roll is one of them. It enables users to quickly spin up their personal or community assets in line with a pre-set guideline.
Another active minting service is the ERC20 token generator built by Vittorio Minacori. The service allows users to “easily deploy a smart contract for a standard, capped, a mintable, burnable ERC20 token.” Besides, it is possible to manually spin up your community token if you have the necessary knowledge, though this is naturally a more complicated approach.
The exciting point about TCCs is their value for and among their communities, real and perceived. Thought these ventures are still in their infancy stages, some users are already investing large sums (in the form of the mandatory stake) to participate in these exclusive, cryptonative social opportunities.
Examples of Communities with Tokens
$DFIO is the membership token of DeFi omega, a self-described “global network; a DeFi think tank and a group of policymakers to shape future policy in decentralized finance.”
The activist community has described $DFIO as a social experiment with no intrinsic value. To participate in it with a base membership, you must hold 100 $DFIO. There are only ten slots for board membership; you must stake 10,000 $DFIO.
The total members were capped at 1000 during the project’s first month after launch, after which 100 members can be added every month. Additionally, two board members can also be incorporated once a year. DeFi omega members can also choose on new DeFi projects to invest 10,000 $DFIO quarterly. Other communities with token include $PARTY, $JAMM, $DDIM, $KARM, and $LADZ.
Generally, TCCs still comprise a small portion of Ethereum’s ecosystem compared to other fields, but it has experienced a commendable movement in recent weeks. It is projected that TCCs will continue to gain momentum in the near future as crypto investors continue to seek new cryptonative ways to establish and generate wealth.
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