Tokenization and Fundraising in Social Groups and Communities
The social sciences field is exciting, with a lot of research dedicated to understanding and developing theories about human behavior. Psychology, sociology, economics, anthropology — whatever discipline you look at, there is overwhelmingly conclusive evidence that the human being is a social animal. Living together in organized social groups is a basic human instinct.
While there was so much optimism for the potential of the web during its earliest days, there was even more skepticism on the other side of the aisle. However, the web became mainstream around the same time when social networking became popular on the internet and users could interact with each other in groups. This might be more than a coincidence because the innovation finally met a critical demand — connecting humans.
The point is, where humans exist, they exist in groups — on Web2 and, very soon, on Web3.
A Common Attraction
People live together in social groups for different reasons. At a time, it was for survival, but that is no longer the issue nowadays. Social groups these days assemble for aesthetic reasons — sometimes, it is a mutual love for a sports team, a content creator, or a common idea. Whatever the common denominator is, people usually tend to develop strong feelings for it and the community around it. Typically, they also want to support the person, entity, or idea that binds the group or others within it.
Donating money to a favorite content creator is just a regular day on the internet for many people. And for many others, meeting obstacles that prevent them from supporting their favorite causes is just the norm.
Supporting causes, content creators, projects, and communities you relate with financially is a huge part of the human social experience. However, people don’t get the opportunity to feel this emotion for many reasons, ranging from geographic to systematic.
Tokenization is a blockchain innovation that allows projects, communities, and content creators to issue tokens representing assets, investments, information, membership status, etc. Almost anything can be tokenized as long as one can represent it with an arbitrary or standardized amount of tokens — fungible or non-fungible.
Tokenization made fundraising easy, and the different periods of ICO booms present reliable evidence for that assumption. Tokenized fundraising has taken many forms over the years, including ICOs, IBOs, IDOs, token sale events, etc. However, as the blockchain space evolves, innovative projects present new and more efficient methods to tokenize fundraising and expand participation opportunities for users.
Forward Protocol’s IVO
Tokenized fundraising is not a novel innovation, but Forward Protocol proposes a unique approach that facilitates usability and optimizes resources. The protocol’s smart contracts were designed to cover every conceivable scenario in the value transfer process. Hence, Forward Protocol’s Initial Value Offering (IVO) covers every conceivable scenario where value is on offer.
In the context of social groups, value represents a wide range of utilities, including membership subscriptions, donations, special offers, etc., that were not available in previous tokenized fundraising models. Forward Protocol’s IVO smart contract allows any content creator, community, social cause, etc., to offer the value they provide to a global audience.
- A teacher can raise funds for cost-intensive courses
- Content creators can offer their content to a global audience
- Small businesses can raise funds without giving up rights and shares in their business
- Charities can easily measure public perception and raise funds for valid causes.
Our whitepaper has more information about our IVO and everything else our smart contracts offer.
Fundraising through Forward Factory
Forward Factory provides a suite of smart contracts, applications, and services that make Forward Protocol the ultimate solution for protocol users, including participants in social groups, irrespective of the common cause holding the group together.
Forward Pay allows members of a community to make donations and participate freely in the social groups they exist in. It also features a fiat ramp that allows members to easily make donations and complete transactions directly from their credit cards and bank accounts without the hassle of converting funds from fiat to crypto.
Social groups overlap, and many people belong to multiple communities, interacting with each other and enjoying the full experience. Forward ID allows users to transfer their reputation across different communities and social groups.
Forward Protocol also provides a fully customizable Layer 0 experience that is easy to use, even for users with no technical experience. It allows value providers (social groups) to determine parameters and participation rules according to their beliefs. The protocol also issues a token — $FORWARD — that facilitates all the activities of different groups while acting like a ‘native token’ for these groups. Hence, each group does not need to create a blockchain or issue a unique token for every event it hosts. They can simply use a reliable, dynamic token to cover their unique needs, managed by a transparent and reliable smart contract.
The Ultimate Social Experience
Forward Protocol’s solution focuses on optimizing users’ experience on any side they exist on — as a content creator, consumer, or group member. We deliver on that vision through smart contracts, applications, and services on a transparent and fully customizable template.
Forward Protocol does not compete with anyone. We collaborate with everyone to make the blockchain adoption vision straightforward and rewarding.
About Forward Protocol — Forward Protocol uses an easy-to-use WordPress-like model to facilitate a no-code environment that users can use to deploy their blockchain applications without technical knowledge. Forward Protocol has elements of NFT, DeFi, Gamification, AI, ML and Social Tokens inbuilt that connect the value-driven economy. Applications and smart contracts from Forward Protocol can be deployed on any EVM compatible chains in one click. Forward Protocol is cross-chain compatible, industry-agnostic, and adoption-focused, with an ultimate goal to fast-track mass adoption of Blockchain Technology.