In order to attain widespread popularity, the first cryptocurrency initiative to do so was Bitcoin, which set the precedent for others to follow. Uniswap, Metatime, and MakerDAO are just a few examples of the modern projects that all owe their success to the fervent community support.
Since decentralization is the name of the game in the crypto world, any project’s likelihood of success will typically depend on how strong its community is and how much support it receives.
The most well-known cryptocurrency initiatives are those that put a major emphasis on building a community where participants are encouraged from the beginning. Satoshi Nakamoto, who invented Bitcoin, was the first to recognize this. He (or she!) was aware that the goal of a decentralized, peer-to-peer digital currency could only be realized if it was widely adopted, which required creating a community that included not only other believers but also people who were prepared to contribute. In order to do this, Satoshi established the BitcoinTalk Forum, where he invited cryptographers, cyberpunks, and others to debate his concepts and advance their development.
The foundation of cryptocurrency is now this community-led framework. It’s interesting to note that Bitcoin has never had a marketing budget. That’s because it never required one because of how strong its community was. When Satoshi vanished from the Internet, the Bitcoin community he founded was prepared to carry out his vision, and now it has millions of users all across the world.
Communities Drive Direction
Every cryptocurrency project is centered on the communities that support, connect with, and promote its concepts. They are essential to its growth because they promote awareness, encourage expansion, and maintain network effects.
One of the most well-known decentralized exchanges, Uniswap, is a good example of this community-led strategy. The Uniswap community startled many in the cryptocurrency sector earlier this year when it decided to vote against a plan to charge fees to liquidity providers, going against the interests of its inventors.
All Uniswap V3 liquidity pools would be subject to a protocol cost that is equal to one-fifth of the pool fee, according to the developers’ proposal. The proposal’s stated objectives are to introduce a fee for Uniswap pools, a way to claim earned fees, and a trustless sale of the fees earned for an asset chosen by the UNI community.
Typically, the primary developer teams for crypto projects agree to requests made by those teams, however this time that wasn’t the case. In a survey of UNI token owners, the idea was rejected by 45% of respondents, with the remaining votes being split among several fee proposals.
While the outcome was unexpected, it demonstrated how user sentiment has become one of the key determinants in influencing the future of crypto systems. The community decided to exempt liquidity providers from fees because they are the primary market makers and essential to Uniswap.
Communities Support Each Other
Communities play a crucial role in assisting other users in addition to deciding the course of initiatives. There is no better example of this than the burgeoning Metatime blockchain community, where tens of thousands of its users were abruptly and unceremoniously kicked off of Twitter for taking part in a group airdrop.
In order to create a complete ecosystem of Web3 services centred on the MetaChain and MetaCoin, Metatime is an incredibly ambitious Layer-1 blockchain. With its MetaAirdrop campaign, the project became public earlier this year and offered users the chance to earn free MTC tokens by sharing it on Twitter.
Unfortunately for Metatime, Twitter’s algorithms determined that the campaign was some sort of hoax, and as a result, it blocked or suspended an estimated 100,000 users. The controversy that ensued saw many more Metatime enthusiasts demonstrate in support of their fellow community members. Many of the impacted Twitter accounts were swiftly restored when the #FreeMetatime hashtag quickly went viral and brought attention to the suffering of the banned Metatime users.
The strength of the Metatime community was the primary element in its ability to continue its airdrop campaign, and its users will be crucial to many of its future Web3 projects. It’s only one instance of how a supportive community may propel achievement by assisting one another in comprehending the project and realizing the impact it will have on the world.
Communities Evolve Crypto
Another innovative proposal that tries to combine traditional money with decentralized finance is motivated by community consensus. One of the first cryptocurrency lending and borrowing systems, MakerDAO also developed the DAI stablecoin, which is essential to the ecosystem of the platform.
As an algorithmic stablecoin tied to the value of the dollar, DAI was initially intended to function. DAI has developed, however, in response to the demise of Terra’s UST, a popular algorithmic stablecoin, in order to guard against the erosion of its own value. Early this year, the community unveiled the idea of a physical asset vault dubbed BlockTower Andromeda, which spent $1.28 billion buying short-term US Treasury bonds to diversify the reserve assets that support DAI’s value.
The action reflected a rising desire among cryptocurrency users to combine DeFi with conventional financial instruments in order to stabilize the ecosystem and draw more liquidity from established sources.
The Lifeblood Of Crypto
Crypto initiatives are in a unique position to gain from collective wisdom since they invite user input into decision-making. Users are motivated because they are aware that they are not limited to being merely passive observers. Instead, people may actively contribute to the project and make their thoughts heard by being a vital part of it. It is a system that makes sure a project’s long-term development aligns with the interests of its user base and is the most reliable means to foster growth, stability, and long-term success.
