What Are Corporate Values Tokens and Why Do They Matter?

The rates at which organizations worldwide are adopting blockchain and related technologies are increasing. One of the processes that has gained traction in this regard is corporate tokenization. Indeed, more and more companies are now converting rights and assets into digital tokens. These tokens, in turn, can be bought and sold on a blockchain.

That said, in this article, we’ll be focusing specifically on the meaning of corporate value tokens and their significance, primarily with regard to employee acknowledgment or recognition and business values. If you are interested in developing detailed knowledge regarding this topic, including the different corporate value token types and how to make a token system work, read on!

Corporate value tokens refer to digital tokens that one can buy and sell on the blockchain without the involvement of any intermediary. In other words, one can trade such tokens in a permissionless manner. These tokens do not just represent an asset; they digitalize rights within the organizational environment. 

The applications of this type of company culture tool are endless in both business-to-consumer or B2C and business-to-business or B2B. For example, a token may outline how workers may operate equipment and when. Such tokens may also specify how an organization may use, verify, or safeguard its intangible assets, for example, patents, trademarks, etc.  Note that digital smart contracts define the rules that are in place, and on the basis of such pre-specified rules, the self-execution of the agreements takes place. 

These digital tokens can be used for employee recognition as they can represent rewards. For example, suppose an employee manages to finish a difficult project before the deadline. With corporate tokenization, a smart contract sends digital tokens to the employee’s digital wallet automatically once they change the status of the project to “done.” The employee can choose to redeem the digital tokens for an extensive range of rewards, from over-the-top or OTT media subscriptions to online shopping credits. This lets the employee decide how they wish to utilize the tokens. 

Utilizing such token-based rewards enhances transparency and eliminates bias concerning employee engagement initiatives. It aligns employee appreciation with organizational values. 

Let us look at the various kinds of value tokens. 

#1 - Custom Challenge Coins

Before we dive into what is a custom challenge coin, let’s find out what exactly is a challenge coin. A challenge coin refers to a small medallion or coin that bears an entity’s emblem or insignia; the members of the organization carry it. Traditionally, they served as military tokens for proving membership to a particular elite unit. That said, the use of such tokens is now also common in the corporate world.

Companies utilize custom challenge coins to reinforce the values and identity of their brand. The businesses can make the aesthetics of such coins aligned with their brand’s logo, core message, and colors. They can distribute such coins to their employees and other specific stakeholders to establish longstanding connections. 

Organizations such as Facebook and Google have utilized such coins on various occasions to celebrate major events, like the launch of products, organizational achievements, etc. 

#2 - Digital Badges & NFT

A digital badge refers to a digital credential that serves as proof of specific knowledge, skills, and competencies. Employees who receive digital badges from their organization can attach them to their CVs. They can also display them on social media platforms to improve their professional reputation. These badges are tangible rewards that can motivate an employee to further enhance their knowledge. Moreover, these badges can recognize newly acquired professional skills and help keep track of achievements. Note that badges can also denote promotions and career milestones. 

Another popular type of corporate value token is a non-fungible token or NFT. NFTs are one-of-a-kind cryptographic token that exists on a blockchain. Replicating these tokens is impossible. Typically, they represent tangible assets. Businesses can recognize employees’ achievements with the help of NFTs. By providing such tokens, businesses can recognize their accomplishment and give them an asset that the same time. Employees may choose to sell the asset at any time in the future to realize the value. 

Businesses can also reward loyal customers with the use of NFTs. This can boost brand loyalty and enhance customer engagement and trust. Additionally, it can reinforce organizational values and boost revenue. 

#3 - Wearable Pins or Badges

Wearable badges or pins can help motivate employees and help fulfill organizational goals more efficiently. Recognizing employees’ work with such tangible appreciation can remind them of their achievements constantly. Moreover, these company culture tools foster healthy competition as the team members make an effort to deliver the best output. Having said that, balancing collaboration and competition is vital to strengthening company values. 

#4 - Exclusive Perks

Exclusive tokenized perks refer to benefits or rewards represented by digital tokens stored on a blockchain. In the corporate world, one may trade, redeem, or earn such tokens. Businesses often provide exclusive perks to their customers and employees; both can utilize them to obtain exclusive products, discounts, or services. These tokens provide employees with tangible assets as well as appreciation.

#5 - Points-Based Rewards

In the context of corporate values tokens, points-based rewards refer to the conversion of points into tokens. This concept is common in the case of loyalty programs. Let us take a look at the following three pointers to find out how it works:

• Basically, because of the tokenization, customers get digital tokens rather than points.
•  Every transaction creates a one-of-a-kind token on the associated blockchain.
• Customers have great flexibility; they can use, redeem, or trade such tokens quickly. 

The following pointers of corporate value tokens can help us understand how corporate value tokens make a difference from a commercial standpoint.

• Tokenization improves loyalty programs and boosts customer engagement 
• They can help strengthen business values 
• These tokens assist in recognizing employees’ achievement and improve employee morale
• Tokenization can boost brand loyalty
• They can play a key role in boosting revenue 

Establishing a token system that actually works can be quite challenging. That said, can make it work by ensuring the presence of the following five layers: 

• Technology Layer: This layer is built on specific blockchain architecture, consensus mechanisms, and protocol codes. 
• Legal Layer: This involves the legal entity hosting the token ecosystem and outlining the token’s legal status. It also limits the regulatory framework that is applicable and the tax implications resulting from it.  
• Corporate Business Model: It summarizes the commercial strategy’s main attributes, which include the value proposition’s clear attribute, revenue sources, monetization model, target customer segments, etc. Simply put, the corporate business model frames the commercial strategies, goals, and approaches necessary to fulfill the objectives.
• Governance Layer: The governance layer defines the working mechanisms of the token system. Businesses need to outline who decides where, when, and what and set certain prerequisites.
• Tokenomics: It describes the aspects that affect the value and use of a token. Examples of the aspects include typology, purpose, underlying value triggers, inflation, supply, rights and utilities, and distribution rules.

The technology associated with corporate value tokens is still in the early stages. That said, there is ample scope for it to develop further and have a positive impact on a company’s financial and commercial aspects. If you wish to use such tokens in your organization, make sure to include all the layers discussed above to implement an effective token system that can help reinforce the business values efficiently.