Mint a Community Token

Eliot Couvat

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The "Minting Tool" on Coinvise is a way for creators to make a token and turn their audience into an engaged community. On Coinvise, anyone can create a token in few clicks and receive the tokens created directly in their Wallet - retaining 100% of ownership.

Table of Content

Section 1 - Learn how to Mint a Token on Coinvise in a few clicks (Tutorial)

Section 2 - Things to know before creating a Token (+ our best tips on how to do it)

Section 3: Learn how Global Coin Research created a token on Coinvise which helped them created a media platform with 30k+ subscribers (Use-Case)

1 - How to mint a Token on Coinvise? (Tutorial)

Minting a Social Token is an important step for every community as it will completely reinvent the way members collaborate together and open a whole new world of possibilities.

Once you're ready, go on Coinvise.co and follow this step-by-step tutorial. Creating a Social Token is pretty straightforward and shouldn't take more than a few minutes.

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Note: Before starting, make sure to have a Crypto Wallet and enough Ethereum ($ETH) to pay for the transactions (we don't charge any fees for minting, but there are some network costs paid in gas fees).
If you don’t want to pay money upfront, you can create your token on a Blockchain (Polygon) that requires almost no gas fees when doing transactions (Note: you still need to hold some $MATIC, the polygon network cryptocurrency, but this cost cents).
You can easily switch networks (from Ethereum to Polygon) on Coinvise, as shown below. Ensure to approve the transaction in your wallet once you’ve clicked on “Matic Network.”

Mint a Token

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Go on Coinvise.co and click the Create Token button.

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Click the connect "Wallet button" and follow the instruction. If you don't have a Wallet or don't know how to connect it, here's a complete tutorial.

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Click on the "Token" button as shown below.

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Choose a name for your Token, a symbol, and the number of tokens you want to create. We suggest you create 10M tokens as this is the industry standard. If you're interested in learning more about Social Token's Financial aspects and its rationale, make sure to read this article.

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Note: The “Name” of the token is what people will see when receiving your token, so choose it wisely. The symbol is equally important but can be different from the name.

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Continue by scrolling down, then check the box and click on the "Create" button.
Note: Creating a token is a 2 steps process. First, when clicking the “Create” button, you’ll have to pre-approve the transaction from your wallet. Then, come back to Coinvise and create the token. Once again, you’ll have to approve the transaction from your wallet.

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Step 6: You're all set, congrats!
You'll receive your tokens shortly, directly in your wallet. You can then click on the "Go to my Dashboard" button and explore all the things this new token allows you to do, such as creating awarness around your community through an Airdrop. 💪

2 - Things to know before creating a Token (+ Our Best Tips On How To Do It)

Because we often get asked about our best tips, we’ve decided to share here everything we learned helping dozens of communities launch a token.
We know it can be overwhelming initially, so we made this section as easy & clear as possible. And remember, there’s no rush, so take your time and enjoy the ride 🥳

2.1 - Core utility of your token ✨

Before you create a token, it's important to understand the core use cases that drive successful interaction around them. Popular use cases that we've seen on Coinvise include but are not limited to:

Incentivize individuals to become contributors in your community.
Reward anyone contributing in your Project.
Crowdfund your project.
Facilitate the coordination with the people you're working with by leveraging the ecosystem of tools available.

2.2 - Creating a Token on Layer 1 or Layer 2?

Social tokens on Coinvise can be minted either on Ethereum Mainnet (L1) or Polygon (Matic) Network (L2), which are two different blockchains. Not sure to understand what a blockchain is? No worries, we got you covered - read this quick thread.

Alright, now, on which blockchain should you create your token? As mentioned above, if you don't want to pay money upfront, you can create your token on Polygon, which will let you create your token and make transactions for almost free (with almost no gas fees). However, this comes with some downsides, such as an extra step for community members to see your token appear and a non-compatibility with some applications.

Most well-known tokens are on Ethereum, as this blockchain has been around for a long time now, but it's more expensive to make transactions on this blockchain.

It's also good to mention that one chain doesn't exclude the other. Creators on Coinvise can create a token on Ethereum and then send a portion of those tokens on the Polygon blockchain, so they have the best of both chains.

If you're interested to learn further about the pros/cons of Layer 1 & Layer 2, read this.

2.3 - Maintaining Treasury 🛠

Once you have a clear use case, founding member(s) of the community can create an account on Gnosis to store and distribute ownership. We also suggest using Llama for managing treasuries or Snapshot for governance mechanisms. It's helpful to understand allocations of how tokens will be utilized (Eg: 70% Treasury, 20% allocation for team/community, 10% vested over time for airdrops, bounties or other incentives).

If you're interested to read further → https://tinyurl.com/3dhytb8b

2.4 - Crowdfunding 👥

Fundraising directly from your community can be helpful to bootstrap liquidity for your token. Creating a Social Token makes it easier for creators to raise funds as contributors will receive Social Tokens in exchange for their USD, and therefore, are incentivized to do it.
If you're interested to read further about how to crowdfund through social tokens → https://tinyurl.com/5x4bhc45
You can crowdfund on Coinvise directly thanks to NFT memberships. Learn how do do it → https://www.notion.so/coinvise/NFT-Memberships-Get-Liquidity-for-your-Token-49857e3260ca4f618ab27f09ab49aa10

Note: Coinvise has integrated compliance for crowdfunding, as per SEC regulations. Learn more about Securities Law for Social Tokens here → https://tinyurl.com/ukunwj2b

2.5 - Giving a financial value to your Token 🦄

For a token to have a financial value, it needs a Liquidity Pool. You can create a liquidity pool on Uniswap.

Note: Creating a liquidity pool requires to put money upfront and should be done only by big enough communities.

Each Uniswap liquidity pool is a trading venue for a pair of ERC20 tokens. When a pool contract is created, its balances of each token are 0; in order for the pool to begin facilitating trades, someone must seed it with an initial deposit of each token. This first liquidity provider is the one who sets the initial price of the pool.

Whenever liquidity is deposited into a pool, unique tokens known as liquidity tokens are minted and sent to the provider’s address. These tokens represent a given liquidity provider’s contribution to a pool. The proportion of the pool’s liquidity provided determines the number of liquidity tokens the provider receives. If the provider is minting a new pool, the number of liquidity tokens they will receive will equal sqrt(x * y), where x and y represent the amount of each token provided.

Whenever a trade occurs, a 0.3% fee is charged to the transaction sender. This fee is distributed pro-rata to all LPs in the pool upon completion of the trade.

If you're interested to read further → https://tinyurl.com/2e53n934

2.6 - The ultimate Guide to Designing Effective Token Launches

To help you with your newly created token, we’ve written a guide that will help you launch successfully your token, covering each steps you’ll have to go through 🤝

2.7 - Other interesting Resources
If you're interested to go further, here is a curated list of some of the best resources out there. Enjoy 🥳

3 - Global Coin Research and the case for Minting a Token (Use-case)

Because we've always understood onboarding the next million individuals in crypto will only be possible through education and seamless user experience, we're building daily new easy-to-use tools and creating content on how to use them.

Creating a token is an essential step when building a tokenized community as a token will align incentives with community members, allow to reward them, facilitate collaboration, create trust and more.

Learn more about how Global Coin Research leveraged the Minting tool to become a thriving community.

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