Community-Based Crypto Projects & Why We Love Them
What’s your favorite crypto project? Why do you like that project? These are questions I often ask as I speak with various people about the types of projects they want to invest in. The answers I get most often are that people enjoy projects that have a good idea, a workable use-case, and a fantastic team of developers. However, some people have told me that they choose to invest in certain projects because the community behind the project is so strong. These communities are made up of investors and they’re the people who continually show up to meetings and participate in discussion. As it turns out, people investing in this space love to have direct access to the founders and developers of projects. These types of connections allow users to have an inside view of what’s going in. People love transparency and they love having an active role! That’s why projects that operate as community-based systems have a high number of active group members. Community-based projects establish trust with the users and give the investors a say in what happens with the project and that relationship is key to a lot of great projects.
Cobalt Lend is one such project. Cobalt is a project geared toward lending and borrowing on the blockchain. They have created a way for their community to be involved in the process by allowing investors to act as lenders. In this role, a community member can choose to add to the liquidity pool that powers the lending side of the project. On the borrowing side, a project can apply for a loan and if they receive that loan, they utilize the liquidity pool created in part by other community members. The investors who contribute to the lending pool are then rewarded after the terms of the loan are carried out. This is just one way in which the community can take an active role. They can also vote on projects and which ones should or should not receive loans. If a community member wants to participate in voting, they must first be verified and then they receive an NFT that represents their vote. This is to make things completely transparent and fair.
Dash is another great example of a crypto project that allows community members to participate in meaningful ways. Dash is an open-source project just like Cobalt. This means transparency for their following and investors. This project looks to improve security and puts a focus on faster transaction speeds. The Dash community members can help to govern decisions about the project. In fact, all a member would need to do is submit a proposal for something they think should change or be updated. That proposal is then read by the team members and the team holds a vote as to whether or not they should implement the suggestion. It’s projects like this that make people not only more interested but more hands-on.
These are just two great projects that put an emphasis on community engagement. Everything from group discussions to voting are done using the ideas and inputs from their community members. When you take this approach, it encourages the average investor to start taking an active role in more of the crypto space. This can provide valuable insight to projects that are looking to improve their product in some way. It serves as free feedback. The idea of working together as average investors and developers is what makes the crypto revolution such a powerful one. These types of relationships help to educate individuals and it also encourages the average person to start taking an active role in their own finances. The power that comes from being in control of your own finances makes people feel feerer and more likely to engage in other parts of their life that they normally wouldn’t have attempted because they assume they’re powerless. Crypto projects that lean on their communities for support and suggestions are a perfect example of how blockchain can be the future of finance.
