What are Fren Tokens
Fren tokens are social tokens that have been developed on the Ethereum network. They were developed as social tokens, with this name being a short form of the word friends. Fren tokens act as community tokens where the community is responsible for determining the direction that the platform should take through a vote.
These include everything from the reward system that is going to be implemented to the products that are going to be launched on the platform. The community votes on the idea, and if it goes through then, the product is developed and taken to the next level. This form of community token is a fairly recent development in the crypto world. It shows how crypto is evolving and taking advantage of the meta-verse. This recent development seeks to create socially knit communities where community members come together through a shared vision, decide on the direction of the platform and vote on the rewards, compensation and products that the platform can work on. All you need to do to become a member is to buy the native tokens of the platform. You will then get exclusive access to the platform. The more tokens you have, the more voting power you’ll be assigned. Fren is at the forefront of this nascent technological development.
Buying Fren tokens gives you exclusive access to the community. Currently, there are about four key features that token holders can enjoy in the community. Firstly, being a FREN token holder ensures that you get access and vote on the direction of the platform through FrenDAO. This is the governance body of the platform. The more tokens you have, the more power you’ll have on the FrenDAO on determining the direction of votes. This power is called Fren power. Secondly, community members will also be part of OnlyFrens- an exclusive social media community for members. The main aim of OnlyFrens is to provide an environment where members can come together, network and learn from each other while at the same time having fun. There will be events that will be organised from time to time on this platform, and members will be encouraged to participate. Active members and influencers on this platform will be rewarded with gifts and tokens. The other feature found on this platform is frenDEX. The main aim of creating this is to ultimately turn it into a decentralised exchange.
What are community tokens?
Crypto as an asset class has evolved, and there are currently different subtypes in this category. Tokens were initially created as a way of decentralising ownership of companies during the ICO boom. While this remains to be the core function of tokens, they have taken different forms and functions in the crypto ecosystem. One of these is social tokens. Social tokens are basically tokens that have been designed either by an individual or community. The people who buy these tokens can cash out on them when the time is right. This can either be in the form of liquidating your position as an early investor or redeeming your tokens for services from the token issuers. For example, a doctor may issue a token that can be redeemed for their service when the token holder is feeling unwell. On the other hand, a famous athlete can issue tokens for sale. They can then set aside a specific amount of the money they make each year and reward the token holders. This can be, say, 20% of their annual earnings and endorsements. An online community can also come together and set up a token that community members can redeem. It may be an investment community that focuses on particular assets. Community members who are part of this exclusive network get a chance to purchase these tokens and cash out after a specific period. One notable thing about community tokens is that it gives access to a special community that non-token holders may not be part of. This creates some form of pride and recognition in the online community. Having a badge or icon on your social media status that shows that you belong to a certain community may give you access and accord you respect in certain circles. Tokens that are bought within such communities are what are called community tokens. Community members in these communities are given exclusive rights in deciding the direction of the platform. For example, they may decide that the platform shifts from one product and put their attention on another product. The more community tokens you have with you, the more say you’ll have.
The value of community and social tokens, in general, can be said to be threefold. First, it grants you access. Imagine an artist or recording studio that gives you access to all their records as long as you have their tokens. In this case, frenDEX gives you access to their products and features for as long as you have purchased tokens from them. Secondly, they act as a form of exchange. Communities can agree that transactions within them can be done through these tokens. For example, an eCommerce platform with a social token can say that they only accept their social tokens as a form of payment in the community. This will drive value for these social tokens. Finally, these community tokens can act as a form of investment. Their prices can go up or come down. If there is value in the community and in the services that are offered, then this is bound to increase the value of these social tokens.
How community tokens have evolved
Tokens were set up to act as utility tokens, commodity tokens or security tokens. However, in the recent past, we have seen more uses of tokens emerge. What initially started as a solution to centralisation has morphed into an asset class that is bound to be the future of eCommerce and the metaverse.
True, the concept of social tokens is not a fairly recent development. In the past, artists tried to involve communities in their investments. For example, a music icon would float a bond that is governed by a central entity where the bondholders will be entitled to a specific amount of money every year. The problem with this method is that it was centralised and only covered by a particular jurisdiction. In the event that you did not come from a certain geographical area or didn’t qualify for this bond, then you may not be eligible to take part in it.
Then ICOs came, and communities sprung up on how they could tokenise their products, services and even companies. This had modest success. However, it was filled with scammers and legal challenges. Most investors lost their funds in this hype as most of the coins and tokens they invested in ended up being worthless and could not be traded anywhere.
Over time, lessons have been learnt, and there seems to be progress in this field. Community tokens simply build-up from the successes and failures of these past efforts to bring true ownership to individuals. Most of the community tokens that are being sold are being actively traded either on Dex, CEX or even swap platforms. This shows that they are liquid, and investors can cash out whenever they want. Community members are also actively involved in the management of these tokens. With Fren, token holders are the ones who decide on the direction of the platform and which products to design or shelve. The communities are also active places where it is not just about monetary gain but also a place for the community members to network and have fun.
Will there be growth in Fren Community tokens?
There are lots of checkboxes that developers and community members have to answer before they see value in their community tokens. The first one is an MVP. Every serious community out there needs to have an MVP that token holders can see and even test. This will help show that the project is serious and making progress. Having a marketing website with your vision is cool but getting an MVP and having it tested by the actual community is a different thing and shows you are making progress. Fren has made progress in this regard, and they have actually developed their products that are currently being tested by the community. These include frenDEX, OnlyFrens and FrenDAO. This is ideal as it shows that there is progress on the platform.
Secondly, community engagement is another aspect that decides the growth of a token. Fren community is active on social media. This shows that they are committed to seeing more progress on the platform, and they can monitor progress being made on the platform.
Thirdly, listing is a key aspect that determines the growth of a token. Fren token is already listed in a number of exchanges. The recent listing in Poloniex, one of the largest crypto exchanges, shows that they are on the right track. Users can also access Fren tokens on other exchanges such as BKEX, dextools.io, and uniswap. The Fren community has also partnered with coinmarket cap and coingecko to have their platform listed there.
Factors that hinder the growth of community tokens and how Fren overcomes them
While social tokens seem to be making progress toward bringing value to the hands of content creators and communities, there are challenges that need to be overcome. First, there is a worry that with social tokens, that creativity may be hindered as the community may vote down creative initiates by the artist. Secondly, this over-financialisation of transactions and online engagements may not be healthy for online interactions. Third, if an artist breaks down or is not actively involved in creating new projects, then what does that means for the holders? Fren tokens tackle some of these challenges. First, creating a social network that is focused on fun means that it will not be about business all the time on this platform. Fun events will be organised, and members allowed to interact with each other.
The Data Centre will be one of the most eco-friendly data centres across the world. The team at Solidus have developed an IP that enables them to run the facility while consuming energy at less than 40% of the industry standard, while still operating under the ISO 9001:2015 quality assurance standards. The platform is also supportive of the Crypto Climate Accord where they intend to reduce net carbon emissions and also power their facility through renewable energy sources. They will also work closely with government ministries to empower local talent by onboarding top performers in local tech competitions. Trees will also be planted within the vicinity of the data centre in conjunction with the Ministry of Education in Romania.
Purchasing AITECH tokens on the platform will provide access to their services once the data centre is complete. Tokens can be staked for a share of the pool until the platform goes live, at which point they can be traded or utilised for the purchase of AI services on the platform. 1.5 billion tokens have been set aside for allocation as staking rewards. Staking this token is estimated to yield around 7.5% returns on an annual basis. Stakers who continue to stake will also be entered into quarterly airdrop lotteries where the winners will win additional AITECH tokens.
There are three types of users on the Solidus ecosystem. Firstly, there are token holders who have invested for the long-term growth of the platform. Secondly, there are token holders who are invested in the platform but would also want to purchase AI services. Thirdly, there are token holders who may want to redeem their tokens for AI services that are offered in the platform.
So in the future Solidus Ai Tech will have a thriving eco-system that is smoothly integrated with their AITECH token.
Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
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