SubSocial - Tokenomics (A decentralized Social Media Platform)

In a world where we live by tweets and posts, our social lives are marred by the oligarchy of the social media conglomerates. It is time for change and it is time for @SubsocialChain

I had covered SubSocial - A Decentralized Social Platform on Polkadot and given an insight into an ecosystem that is trying to fill the voids of the existing social media platforms by bridging different features and encompassing different use cases to create a holistic experience for users and creators alike. This article is a follow-up outlining the tokenomics of Subsocial. 

Token economics or Tokenomics is the most fundamental factor about any project besides the product. With a good product but a bad tokenomic structure, projects struggle to achieve the desired success or adoption. Tokenomics refer to the different use cases of the token (governance, utility) including the factors that determine and affect the demand and supply of the token.

Token Economics (Demand, Supply and Utility)

Subsocial as a social platform has built-in monetization methods.

  • Demand - Whether you are a content creator or a user, you will need to have tokens to perform an action. Users would need tokens to pay for transactions and staking the tokens will entitle them for free transactions. For content creators, tokens can be used for advertising in order for their content to be prioritized. The subsocial token will be used for governance as well as access to special content. Users who wish to purchase a token of a particular space will also need to have Subsocial tokens. It is interesting to mention that Subsocial will not only have the Subsocial tokens but all other individual spaces can have their own tokens for monetization. Collators will also need Subsocial tokens to run a validator node of the Subsocial parachain.
  • Supply - For various participants like Collators, Treasury, and PLO participants (users providing security deposit for parachain auctions) who are engaged in carrying out the vital functions of maintaining the availability and integrity of the network, rewards will be paid through Subsocial tokens. These will be a form of inflation paid out from the block reward. As for content creators, publishers, influencers and moderators rewards can be paid through their own space tokens on Subsocial. 
  • Token Utility - The main utility for the token will be for creators to monetize their content in different ways through transactions, content monetization (tips, subscriptions, sell/rent spaces), smart contract deployment, new token deployment and governance voting.

Token Distribution

Subsocial is set to launch on Mainnet within the next three months. Let's go through the initial breakdown of the participants in the genesis block.

Initial Distribution - TGE is the Token Generation Event when tokens are initially created when the main Subsocial network launches.


  • 10% - Private token sales (with 15-25% of this 10% should be unlocked at TGE, 2 years vesting).
  • 25% - Team + advisors (no unlock at TGE, but there is vesting over 2 years).
  • 65% - Ecosystem development:
    • 25% Kusama PLO
    • 15% development grants
    • 10% marketing
    • 5% content creators
    • 5% collators
    • 5% airdrops to existing communities: Polkadot, Kusama, Steem, Hive.

Token Minting (Post Genesis) - After the network is live, rewards will be paid to important participants of the network through token inflation where new blocks will be produced with new tokens. For the first year, there will be no token inflation as the rewards for the key participants (collators and PLO participants) will be included in the genesis block. The inflation will start with 10% (of the total supply) and the parameters may be adjusted to reflect market conditions. However, the project aims to ensure that inflation doesn’t deter new people from joining the ecosystem, but is sufficient to reward certain important participants from performing necessary functions (collators). 

The total amount of inflation could be distributed in the following amounts over the years (though these numbers can be changed via governance).




Subsocial will implement on-chain treasury controlled by token holders just like Polkadot and Kusama. The project aims to have two councils, one which is technical and the other focused on ecosystem growth. The final decision on the timeline of on-chain governance (and hence the treasury) is yet to be decided. 

Subsocial aims to be a parachain of Kusama. If that works out for the project, it might then consider launching a parachain for Polkadot in the future. However, if the project is unsuccessful in launching a parachain then it will consider launching as a parathread. Currently, the parachain block time is 12 seconds which is not optimal for a social network.  
The team has been working hard focused on meeting goals with a new mobile app in the making. If anything about Subsocial speaks to you, hop on to explore the different spaces on the platform. You can explore my space at Everythingblockchain.


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