Social Token and Social Trade

As social tipping brings more and more Web2 users into various on-chain communities, building on-chain reputation for individuals has become a foundational module.

Social Token

Any user can use Donut, an application in the TagAI ecosystem, to create a social token—IPShare—for their personal page (linked to X, Instagram, etc.). The price of IPShare is determined by a bonding curve.

Once created, anyone can freely buy and sell IPShare. The individual whose IP it represents earns a 4.5% transaction fee whenever IPShare is traded.

There are two ways to create a social token (IPShare):

1. Via TagAI — when a user creates a Web3 social account on TagAI, an IPShare is automatically generated.

2. Via Donut — by logging into Donut and selecting Create IPShare.

Upon creation, 10 IPShares are automatically minted for the creator and staked on their behalf.

Social Trading

Whether a user shares token-related content on Donut (which is also synced to X and other social networks), or includes a token-related #hashtag in their X posts, Donut will aggregate this content and enable direct token trading under the post.

If users install the Donut extension (coming soon), or use Phantom or OKX Web3 wallets, they will be able to see the trading interface directly on X and click to trade instantly.

For those who authorize Donut with a crypto spending limit (similar to password-free payments on Alipay or WeChat), Donut will also support on-X commands like: @Donut trade 1$BNB to execute a transaction directly under a post.

IPShare Value Capture

IPShare allows every user to capture the value they create and earn from it.

When a token is traded under a piece of content, 1% of the transaction fee is used to buy the author’s IPShare, and the purchased IPShare is distributed to IPShare stakers.

IPShare on Donut is highly composable. For example, when users buy tokens on TagAI—whether during the bonding curve or AMM phase—1% of the trading fee will also flow into the token creator’s IPShare.

The right side of the diagram below shows how creators issuing tokens via TagAI capture value from token trades, and inject that value into their social token—IPShare.