An airdrop refers to the distribution of tokens to community members. Instead of airdropping files, in Web3 we airdrop tokens, or NFTs! Many creators use airdrops to rewards loyal community members. For example, as a creator launching a social token, you can distribute tokens to participants that have previously purchased your NFTs, or to those who have been in your Discord server for a specific amount of time. Airdrops, like bounties, are a great way to engage and reward your community. Bonfire makes airdrops simple, checkout our guides here.
How’s it going, anon? When scrolling through Twitter, you may have noticed that many people in Web3 have anonymous profiles. Why? Well, blockchain makes data public, and at the same time, anonymous, which means you can develop a reputation for yourself based solely off of your activity documented on the blockchain. Think of anon as a slightly endearing, slightly satiric way of referring to anonymous participants in Web3. On another note, anonymity can be difficult for some creators. Knowing which wallet addresses own your social token or NFTs isn’t quite the same as knowing who is involved in your community. Luckily, Bonfire can help with this🙂
Bounties refer to cryptocurrency rewards for a given task. As a creator, you may wish to reward community members for specific contributions to your community, such as a retweet or blog post, in the form of social tokens. Bounties are a great way to engage and reward your community. Bonfire helps you create your own bounties and engage your community with ease. Check out our guides here.
Feeling confident and optimistic about the market, project or person.
Community is one of the most important pillars in Web3. The value that creators and fans alike receive from direct engagement and rewards has been vastly underestimated in the past. At Bonfire, we seek to make engaging with your community as simple as possible.
Creator DAOs are a subset of DAOs that are organized around a creator. Take Daniel Allan, for example. After dropping his own social token, Daniel sought to create a DAO whereby token holders and loyal community members would have a say in the direction of certain projects. You can read up on it here!
Acronym for crypto Twitter. It’s a great place to learn about new projects and Web3 concepts. You can start getting up to speed by giving us a follow @bonfire_tweets.
DAO stands for decentralized, autonomous organization run on blockchain technology. A DAO is ultimately a group of people with shared interests and a shared bank account. DAO members will oftentimes vote on proposals that dictate how the DAO’s funds, or treasury, is utilized. There’s lots of cool stuff going on right now with DAOs, and we think Creator DAOs are going to become a big trend.
DeFi is short for decentralized finance. DeFi refers to a new cohort of protocols and projects that are transforming traditional financial systems.
Discord is a messaging platform for community building. Many creators use Discord to communicate directly with their community members. In recent years it has become one of the essential tools for Web3 communities, and nearly every Web3 project has a Discord server for participants to join. If you are a creator interested in launching an NFT or token, starting a Discord channel to engage with your audience is a good idea. If you have any questions about best practices, feel free to hop in Bonfire’s Discord, here.
Fiat is a type of currency that is not backed by a commodity, and they are oftentimes government issued. USD is an example of Fiat money. Ethereum, on the other hand, is not.
Gas fees are an added cost associated with blockchain transactions. These fees are paid to miners for confirming transactions to the blockchain. Gas fees are unfortunately high on the Ethereum blockchain, however other chains are leveraging techniques to reduce these fees, such as Polygon and Solana.
Acronym for good morning. Universal web3 greeting. gm!
A governance token is a token that exists for the purpose of voting power. Governance tokens can be used to vote on proposals and steer the direction of a community or DAO. For example, you may remember when ENS (Ethereum Name Service) DAO was formed. They airdropped $ENS tokens to those who owned ENS domains prior to a certain date. Those tokens can now be used to vote on governance proposals. Creators who are interested in forming DAOs should dig deeper into the mechanics of governance tokens.
Acronym for Let’s F*ing Go. Common way of showing excitement on social media.
Liquidity pools are another important concept in DeFi. Liquidity pools are collections of assets contained in smart contracts that allow you to trade tokens on decentralized exchanges.
Shorthand for merchandise. Merch helps creators monetize in alternative ways, while fans get to celebrate their favorite creators through fashion and other items.
Minting refers to the process of creating an NFT. When you purchase an NFT, it already lives on the blockchain, and you are simply transferring ownership when you buy it. Minting an NFT means that you publish an NFT on the blockchain. When creators drop NFT collections. oftentimes they are allowing community members to mint these NFTs.
Non-fungible token. An NFT is a certification of digital ownership of a unique digital asset. Creators have started using NFTs to monetize their work and leverage their communities. Musicians like Daniel Allan have dropped music NFTs other creators, like Fanzo, have utilized NFTs to create tiered membership structures for their community.
If you are interested in dropping, trading, buying, or selling NFTs, be sure to check out OpenSea. OpenSea is on of the largest NFT marketplaces, and the place where most creators list their NFT collections.
When you change your perception and start to believe in the potential of web3. Reference to the movie, The Matrix in which a character takes a red pill to reveal the truth.
Royalties are payments made from one party to the other for the right to continually use a specific asset. Royalties have been a staple of creator monetization for a decades, and not surprisingly, Web3 is changing the way that we think about royalties, especially with the use of NFTs. Creators can now make royalties on secondary NFT sales, and even stream royalties directly through NFTs.
May you never get rugged. A rug refers to a project that is a scam, or a project whose value drops to zero.
To shill is to promote. For example, if you hop into our discord, you might notice a #share-your-stuff channel. Feel free to shill your projects, NFTs and/or social tokens in there! But no spam and no scams, of course😎
A smart contract is a piece of self-executing code. Smart contracts will run when a specified set of conditions are met. When you interact with the blockchain, you are interacting with smart contracts. When you are launching a creator token on the blockchain, this is done through the use of smart contracts.
Form of cryptocurrency, or fungible token, that creators use to monetize their work and leverage their communities. Many creators have started launching social tokens. You can take a look at some creators who use Bonfire’s platform along with their tokens. There are different ways to launch a social token and a lot of good resources out there to help you understand the value of social tokens. You start by taking a look at this article.
Staking is the process of earning rewards for holding different digital assets. By staking certain cryptocurrencies, you can generate yield over time. Staking has become one of the most important DeFi concepts. If you are interested in learning more about staking, read up on how Proof of Stake blockchains work. If you are a creator interested in launching a social token, understanding the benefits and drawbacks of different blockchains is something worth looking into.
Uniswap is a decentralized cryptocurrency exchange that allows you to trade tokens. As a creator, you may not be able to list your token on a centralized exchange like Coinbase, and you might not even want to! Community members seeking to trade, stake, and provide liquidity for your token should look to exchanges like Uniswap.
wagmi / ngmi
Acronym for we are gonna make it, or not gonna make it. But, we are gonna make it😎
Web3 refers to a new internet paradigm. Whereas previous models have allowed large corporations and specific individuals to extract most of the value of the internet, Web3 ushers in a new era where participants are rewarded for engagement. You can read more about this here. As a creator, Web3 represents the ability to monetize your work and leverage your community in ways that weren’t previously possible. As an example, digital artists have been able to use NFTs and accompanying digital scarcity to make a living off their artwork. Similarly, musicians can more directly reach fans through dropping music NFTs than through listing songs on third-party platforms like Spotify and Apple Music.
Acronym for whitelist, but we like the term allowlist more. An allowlist is a curated list of individuals who have early access to mint NFTs. Creators can leverage allowlists to reward loyal community members and/or existing token/NFT holders.