What Is DESO Coin? The Decentralized Social DESO Token

The DESO token or DESO coin is a cryptocurrency and utility token at heart of the DeSo Protocol - A fully decentralized blockchain-based social network design to maximize user freedom, control and scalability.

The Decentralized Social Media Token | $DESO

Imagine a world where YOU control your data, where your voice can't be censored by social media giants, and where creators can truly thrive without limited monetization options. This isn't a distant fantasy, it's happening right now on the DeSo blockchain, all powered by a native cryptocurrency known as the DESO token or DESO coin.

What Is DESO Coin?

Own a piece of decentralized social media and the decentralized social web with DESO!

Imagine this: You're scrolling through your favorite social media app, enjoying the content, but you feel a nagging sense of discomfort. Your data is being mined and your content feed dictated (perhaps even manipulated) by centrally controlled algorithms. If you’re a content creator on this social network, despite your best efforts, it's hard to earn a decent income unless you grind on a content hamster wheel for years.

But what if there was a better system?

Enter the DESO coin ($DESO), the native cryptocurrency of the blockchain-based decentralized social network, DeSo Protocol.

DeSo is not just another blockchain; it's a revolutionary platform designed to give control back to users. The DeSo layer-1 blockchain is designed to support social media apps at scale for billions of users, all while making sure that your data, content, and interactions are truly yours.

DESO Coin Powers DeSo Protocol

The DESO coin is a vital component of the DeSo blockchain. You can think of DESO as the oil the keeps the DeSo ecosystem and onchain economy running, supporting transactions and enabling groundbreaking onchain social features.

The DESO coin sets DeSo apart from existing social media networks as well as other layer-1 blockchains such as Bitcoin and Ethereum.

Facilitating Transactions

DESO is used in all transactions on the DeSo blockchain. Whether for creating profiles, buying storage space, or tipping your favorite creators, DESO makes it all possible. This seamless integration of cryptocurrency into everyday social interactions opens up a world of possibilities that we’ve only begun to explore.

Minting Social Tokens (Creator Coins)

Now, imagine being able to create a cryptocurrency that represents YOU, personally. With DESO, this isn't just possible; it's easy.

Social tokens are digital currencies on DeSo that represent individual creators or communities. You can purchase Creator Coins using DESO, providing creators with a new way to monetize their content.

DESO The Governance Token

DESO holders also have a voice in the future development and progress of the underlying protocol, they’re not just passive participants.

DESO coin holders can vote on proposals that shape the future of the DeSo blockchain. This decentralized governance ensures that the community interests are always considered, making DeSo a platform that evolves with the demands and desires of its users rather than a for-profit corporation.

DESO Token Empowers Users And Creators

Now, let's dive into to learn what makes the DESO token so valuable.

User Empowerment

One of the most exciting aspects of DeSo is how it puts control back in the hands of users. Decentralization means that your data is yours, your content is yours, and no central authority can dictate what you see or say. DeSo is a more democratic and censorship-resistant social network where your voice truly matters.

The DESO token is not just a digital asset, it’s a statement of support for user-empowered decentralized social media.

Monetization Opportunities

Traditional social media platforms often leave creators struggling to make a living. DeSo solves this problem by giving creators the ability to generate income directly from their content and audience, through things like social tokens and other innovative onchain monetization features.

The new Blockchain Business Model empowers creators to build sustainable careers and connect with their audience in meaningful ways.

Openness and Innovation

The open nature of the DeSo blockchain fosters a culture of innovation.

Developers can build new and exciting social media applications on top of the DeSo blockchain, pushing the boundaries of what's possible. This openness ensures a constant flow of fresh ideas and applications that keep the ecosystem vibrant and dynamic.

DESO Tokenomics

The economics of DESO token are solid. Understanding the token economics (tokenomics) behind DESO is important for anyone who wants to hold the token as a long-term investment.

So, let's take a closer look at the unique properties of DESO that make it a compelling investment opportunity.

No Equity, Just Coins and Code

Unlike many other blockchain projects, DESO operates without a corporate entity behind it. This means there's no separate equity for venture capitalists; everyone who holds DESO owns the same asset. This structure eliminates conflicts of interest and aligns with the decentralized ethos of the project.

All Tokens Are Liquid

With DESO, there are no future token unlocks to worry about. All DESO coins are fully liquid now and have been for years. This ensures a stable and committed community. This liquidity means that most people holding DESO are likely in it for the long haul, thus contributing to the network’s long-term stability, despite any short-term volatility.

Fixed-Supply of 10.8 Million Coins

The total token supply for $DESO is capped at 10.8 million coins, half the supply of Bitcoin. This fixed supply creates scarcity which could lead to the price of DESO increasing substantially as the demand for DESO increases with user growth.

The core team behind the DESO token has also hinted at the idea of a token split make DESO more accessible as the protocol scales to billions of users.

Deflationary Long-Term

The DeSo blockchain recently upgraded its proof-of-work consensus mechanism to a state-of-the-art “Revolution” proof-of-state consensus mechanism. This upgrade introduced a "burn-maximizing fee" mechanism designed to burn the maximum amount per transaction, positioning DESO as a highly deflationary coin over the long-term.

No Free Coins

Unlike many other projects that have distribute coins through airdrops, everyone who holds DESO had to buy it directly or convert Bitcoin through an atomic swap process. This requirement has ensured that all participants have "skin in the game," which led to a more dedicated and stable community.

Should You Buy DESO?

Now, for the question everyone asks me? “Should I buy DESO?”

As we explore the future potential of DESO, obviously we can ignore it’s potential as an investment. Please note, if you’re new to cryptocurrencies, they are inherently volatile investments, and DESO is no exception.

However, for those who believe in the vision of decentralized social media, DESO offers a unique opportunity.

DESO Token Value & Market Cap

The DeSo team is focused on long-term growth and sustainability. Every decision they make is optimized for the future. I believe this mindset will ensure that DESO appreciates inline with the growth and usage of the network.

As of June 11, 2024, DESO is trading around $18.50 per coin on Coinbase. This is more than 90% below its previous all-time high price in late 2021. There are a number of possible reasons for the decline in the DESO token price over the past few years, but that’s beyond the scope of this article.

So far in 2024, the DeSo Protocol has seen renewed interest as the core DeSo development team works to complete the migration of the DeSo blockchain to it’s new Revolution Proof-of-Stake consensus mechanism. This upgrade will enable DESO staking, that will initially offer stakers a generous 20% APY.

Also driving demand in the DESO token is the highly anticipated launch of Focus, a mainstream consumer social media app, built on DeSo. The Focus project raised over $80m in DESO in a community sale in Q1 2024.

Focus is expected to launch in July 2024 with many in the community expecting the event to significant increase demand for the DESO token. As one of the biggest events in the history of the DeSo Protocol, Focus could help push the price of $DESO back to it’s all-time price of $200 and beyond.

DESO Price & Treasury Value Mismatch

Another interesting note regarding the DESO token is related to it’s market cap.

Remarkably, the fully diluted value (FDV) market cap of the DeSo blockchain (based on it’s current token price of $18.50) is hovering just above $200m. This value is equal to the amount raised by DeSo in 2021 and almost equal to the value of the 2,500 Bitcoin held in the DeSo Treasury, managed by the DeSo Foundation.

It’s rare to see this token pricing dynamic for a top tier blockchain, with so much future potential and in a hot sub sector within the crypto markets.

For comparison, the Ethereum Foundation held $1.6 billion in their treasury at the end of March, 2024, according to CoinDesk. At that time, ETH was trading over $4,000 per coin with a market cap of around $480 billion or 300x its treasury value.

If the DESO market cap were to grow to 300x it’s treasury value in the next 3 to 5 years, the DESO token would be worth about $5,700 and have a FDV market cap of around $61.5 billion.

However, this doesn’t factor in any increases to the underlying value of the treasury which would rise as the value of BTC reserves rise over the same period. This price would also not reflect additional price-elevating factors such as token demand from user growth and transaction growth on the network.

This is why many observe DeSo has having one of the strongest financial positions of any blockchain project on the market today, with more than 2 decades of financial runway to ensure it’s long-term success.

DESO may be another ETH or SOL in the making - possibly even bigger!

Embracing the Future with DESO

In the end, the DESO coin is more than just a cryptocurrency; it represents a movement towards a decentralized, user-centric future. It’s value as an investment will be proportional to it’s success in attracting billions of users and millions of content creators.

With its unique utility, innovative tokenomics, and a passionate community, DESO is poised to make a significant impact on the social media landscape.

Whether you're a content creator looking for new monetization opportunities, a user seeking more control over your data, or an investor exploring the next big thing in blockchain technology, DESO coin offers something for everyone.

By embracing the principles of decentralization and focusing on long-term value, DESO is in a position to paving the way for a more open, innovative, and user-centric and social Internet.

As I illustrated, the DESO token also represents an asymmetrical risk/reward opportunity for crypto traders and investors.

What are your thoughts on the DESO token. Do you own it? If not, are you considering adding it to your portfolio?

P.S.

In addition to publishing this free newsletter, I help future-proof businesses by deploying 90-day content marketing machines across LinkedIn, X and DeSo.

Please reach out if you need help in the following areas:

• Content Marketing

• Social Media Marketing

• Copyediting & Ghostwriting

• Marketing Analytics

• Marketing AI & Automation

Here’s a menu of my web3 marketing services.

Partner Disclosure: Please note, some links shared in my newsletter and online, are affiliate links, which means if you click on them and make a purchase, I may receive a small commission at no extra cost to you. This helps support my work and allows me to continue to provide valuable content. I only recommend products that I use and love. Thank you for your support!

Disclaimer: Investing in cryptocurrencies involves significant risk, including the potential loss of your entire investment. The information provided in this article is for informational purposes only and should not be considered financial or investment advice.