In the rapidly evolving world of cryptocurrencies and decentralized finance (DeFi), one element stands above all else as the backbone of successful projects: the community. While cutting-edge technology, innovation, and development teams are crucial for any crypto project, it is often the strength of the community that determines its long-term success. A strong, engaged, and passionate community can help a project weather volatility, adapt to market changes, and ensure continuous growth, even when developers abandon the project or when challenges arise.
In some cases, community members rise to the occasion through community takeovers (CTOs), where they assume control of a project when the original developers step away or lose interest. These transitions demonstrate the power of decentralization and the resilience of committed communities in the crypto space.
In this post, we’ll explore how community-driven initiatives have shaped the success of various crypto projects, the power of CTOs, and why the community is an irreplaceable asset in any decentralized project.
Why Community Matters in Crypto Projects
In traditional businesses or centralized organizations, leaders and developers are the primary driving forces behind the growth and innovation of a project. However, in decentralized ecosystems, community members play a much larger role. Here’s why the community is critical to the long-term success of any crypto project:
Community as a Source of Innovation
The crypto space thrives on open-source development, where the community actively participates in improving and evolving a project. Communities contribute by identifying bugs, suggesting enhancements, building tools, and creating dApps (decentralized applications) that expand the functionality of a project.
For example, projects like Ethereum and Polkadot have seen tremendous growth due to their vibrant developer communities, who continually push the limits of what’s possible with blockchain technology. In this way, the community becomes a source of ongoing innovation, even if the core team is no longer actively involved.
Community Builds Trust and Legitimacy
In a decentralized environment where anonymity can be common, trust is often built by the community rather than through traditional business structures. Word of mouth from early adopters, developers, and advocates plays a key role in generating trust and legitimacy for the project. When investors see a thriving, supportive community actively engaged with a project, they are more likely to contribute and participate.
A great example of this is the Dogecoin community, which has maintained strong engagement despite the project’s lack of active development for several years. The memecoin has managed to survive and even thrive thanks to its loyal supporters and advocates, who have kept the ecosystem alive.
Community as a Safety Net in Tough Times
Crypto markets are notoriously volatile. During bear markets or when facing adversity, a strong and active community can keep the project afloat by providing support, maintaining optimism, and continuing development when funds or resources are scarce. Projects with a dedicated community are much more resilient to external pressures and can survive downturns that might otherwise spell the end for projects with less engagement.
What Is a Community Takeover (CTO)?
A Community Takeover (CTO) occurs when the original developers of a crypto project either abandon the project, run out of resources, or lose interest in further development. In such situations, it is often the community that steps in to take control of the project’s future direction.
Why Developers Abandon Projects
While most crypto projects start with a visionary developer or team, it is not uncommon for developers to step away from a project for several reasons, including:
- Funding Issues: Developers may lack the financial resources to continue development, especially if the project hasn’t achieved commercial success.
- Market Conditions: Harsh market conditions, such as prolonged bear markets, can cause the developers to lose interest or burn out.
- Other Priorities: Developers may pivot to other projects or opportunities, leaving the original project unattended.
How a Community Takeover Happens
When a developer or team abandons a project, community members who are passionate about its potential often come together to take control of the project. This can involve:
- Forking the Codebase: In open-source projects, the community can fork the code and continue development independently.
- Reforming Governance: Communities can establish decentralized governance systems, such as DAOs (Decentralized Autonomous Organizations), to ensure the project’s continuation.
- Creating New Leadership: Community members can elect new leaders or developers to oversee the project’s roadmap and keep development on track.
The Role of DAOs in CTOs
A decentralized governance structure, such as a DAO, is often formed to facilitate a community takeover. DAOs allow the community to make decisions collectively, voting on key proposals, development initiatives, and funding allocations. DAO governance enables the project to remain decentralized and ensures that no single entity can gain too much control after a developer exits.
For example, SushiSwap, a decentralized exchange, saw its lead developer step down unexpectedly. The community quickly organized a DAO to continue running the protocol, which is now thriving as one of the most prominent decentralized exchanges in the space.
Notable Community Takeovers (CTOs) in Crypto
Several high-profile crypto projects have been saved or revitalized by their communities through community takeovers. These projects demonstrate the resilience and commitment of crypto communities in maintaining a project’s vision, even without the original developers.
Dogecoin (DOGE)
One of the most famous community takeovers is Dogecoin. Originally started as a joke, Dogecoin’s developers abandoned the project in 2015. However, the Dogecoin community kept the meme-based cryptocurrency alive, building a dedicated user base that continued to promote and advocate for the project.
By 2021, Dogecoin had gained mainstream attention, thanks to the support of its community, high-profile advocates like Elon Musk, and the broader memecoin phenomenon. The coin’s rise demonstrated that even an abandoned project could thrive with a strong and passionate community backing it.
SushiSwap (SUSHI)
In 2020, SushiSwap, a decentralized exchange forked from Uniswap, experienced a community takeover after its founder, Chef Nomi, controversially withdrew $14 million from the project’s treasury. Facing community backlash, Chef Nomi handed over control of the project to FTX CEO Sam Bankman-Fried and the community.
The SushiSwap community established a DAO to manage the project, enabling the platform to not only survive but also thrive. Today, SushiSwap is a prominent DeFi protocol, demonstrating how a committed community can successfully take over and steer a project in the right direction.
Ethereum Classic (ETC)
In 2016, following the infamous DAO hack, the Ethereum community was split over whether to roll back the blockchain to reverse the hack’s effects. This led to the creation of Ethereum Classic (ETC), a fork of the original Ethereum blockchain that upheld the “code is law” principle.
Ethereum Classic represents a community-driven decision to maintain the original Ethereum codebase, even after the developers and much of the community migrated to Ethereum (ETH). Ethereum Classic continues to operate independently, supported by a dedicated community of developers and miners who uphold its vision.
How Communities Can Take Over Projects: The Process
When developers abandon a promising project, the community can follow a series of steps to ensure the project’s survival. Here’s a general process for how a community takeover can happen:
Step 1: Organizing the Community
The first step is to organize the community by identifying active members and forming a core group of supporters who are committed to continuing the project. This group can include developers, marketers, community managers, and anyone passionate about the project.
Step 2: Establishing Governance
Once the community is organized, it’s important to establish a governance structure. This could be a DAO, a community-elected leadership team, or another form of decentralized governance. The goal is to ensure that decisions about the project are made transparently and that community members have a say in its future direction.
Step 3: Securing the Project’s Resources
If the original developers left behind any resources—such as funds in a treasury, smart contract ownership, or tokens—the community will need to secure these resources. In the case of a DAO, governance tokens can be used to vote on how the treasury should be allocated to fund ongoing development.
Step 4: Forking the Code (If Necessary)
In some cases, it may be necessary to fork the codebase to continue development if the original developers are no longer involved. This allows the community to take full control of the project’s infrastructure and make necessary updates and improvements.
Step 5: Continuing Development
Once the community has established governance and secured the project’s resources, they can continue development. This includes bug fixes, updates, new feature rollouts, and partnerships. By keeping the project active and improving it, the community can ensure its survival and growth.
Why Community-Led Projects Often Succeed
There are several reasons why community-led projects can thrive, even when developers abandon the original project:
Stronger Buy-In
When a project is led by the community, members have a vested interest in its success. This increases participation, as members work toward a shared goal of improving the project. Because they have skin in the game, community members are often more motivated to push the project forward.
Decentralization by Nature
Community takeovers align with the core principles of decentralization in crypto. Projects governed by a distributed community are inherently more decentralized, reducing the risk of single points of failure or corruption.
Continuous Innovation
When the community drives a project, it can benefit from a diverse set of ideas and innovations. With open-source collaboration, the community can explore new features, integrations, and improvements without waiting for a small group of developers to make decisions.
The Unstoppable Power of the Crypto Community
In the world of crypto, where innovation and decentralization are at the heart of the technology, communities are more than just bystanders—they are key stakeholders in the success or failure of a project. Community takeovers (CTOs), where users step in to guide a project after developers abandon it, show the immense power and potential of engaged communities.
As we’ve seen with projects like Dogecoin, SushiSwap, and Ethereum Classic, the strength of the community can often determine the trajectory of a crypto project, keeping it alive even after the original visionaries have stepped away. Whether it’s through development, governance, or simply maintaining enthusiasm, the power of a dedicated community can make all the difference.
As the crypto space continues to evolve, the role of the community will only become more important. For investors, developers, and enthusiasts, understanding the value of a strong community could be the key to identifying projects that are built for long-term success.
