Is community the key to Web3 adoption?

Community building and a decentralised future

It was evident from the very start that there is a special bond between the crypto movement and online communities. Back in 2009 when Satoshi Nakamoto invented Bitcoin, early adopters, tech enthusiasts and developers from all corners of the world gathered online to talk about Bitcoin’s potential and future implications. 

At first, they discussed the invention on Internet forums such as Bitcointalk, Reddit and Github. These online discussions spread the world about Bitcoin and soon it piqued the interest of other people worldwide. The rest is history.  

If you are interested in finding out how to measure adoption within the decentralised world, we suggest reading this article: 'Measuring Crypto Adoption'.

The same thing is happening with Web3. The new decentralised Internet movement is focused on community building to raise awareness and drive adoption. While in the early stages of the crypto movement, community members used Internet forums, these days they are mostly leveraging social media platforms and content creation to spread information, updates, and educational materials to obtain widespread adoption.

Newcomers might find the Web3 concept complicated. To learn more about the emergence of Web3, why not read this article: 'What is Web3?'.

In contrast to traditional corporations, Web3 projects need community engagement to function. Apart from raising awareness and advocating for projects, Web3 community members secure the infrastructure, validate transactions, contribute to the decentralised governance structure and idea sharing, and drive the ecosystem’s expansion.  

Building strong online communities and fostering active participation has a significant impact on companies implementing blockchain technology and Web3 systems. 

What is a Web3 community?

A Web3 community refers to a virtual community where like-minded individuals with shared objectives and ownership meet. These online communities bring together enthusiasts, developers, thought leaders, investors, and traders to cooperate, discuss, and share knowledge regarding all aspects of the Web3 environment. 

The Web3 movement aims to realise a vision for the Internet centred around decentralisation, digital ownership, and trustless collaboration based on code; the role of intermediaries is broadly reduced, while peer-to-peer collaboration and communication are pivotal. 

Web3 communities thrive on dedicated community platforms that facilitate collaboration, discussions, and knowledge sharing. Typically, key performance indicators of Web3 communities include outlining a shared vision, establishing community guidelines, fostering collaboration and active participation through events and discussions as well as providing educational content and continuous improvement based on valuable feedback.

Why is active participation important?

An active community is vital for effective decentralised decision-making and consistent communication. The success of many Web3 projects relies on network effects; in other words, a growing community attracts more users, developers, investors, and strategic partnerships.

Decentralisation is considered the most significant feature of the Web3 ecosystems since it enables a higher degree of transparent and inclusive community engagement, without the meddling of any central authority. 

The centralised version of the Internet or Web2 is characterised by having intermediaries in control of the flow of information and decision-making processes which contributed to a lack of transparency, responsibility, censorship, and data privacy issues. 

The decentralised version of the Internet gives back power to the hands of users as it disperses the power among a network of participants. Within crypto projects and decentralised autonomous organisations (DAOs) new features include a voting power proportional to holding, staking rewards for curating blockchain-based content, and incentive programs for spreading awareness and engaging existing members.

However, to achieve that level of decentralisation, Web3 projects need actively involved members to achieve a sufficient level of community sustainability. Many of these projects are based on open-source protocols; in other words, anyone can contribute to the project’s development. 

As more and more users are engaged with the project, they can spread the word about the entire Web3 movement and its underlying technologies which encourages other people to get involved. This creates a cycle of adoption that eventually could lead to a global mass adoption.

What is the role of community members within the Web3 ecosystem?

As we have already explained, the community is the lifeblood of the Web3 ecosystem; without active communities, the Web3 world would lose its true purpose.  

To maintain a vibrant ecosystem, a mission statement is not enough. Web3 projects need to introduce a proper tokenomics model as representations of value and voting power within a decentralised governance system as well as tangible incentive mechanisms. 

Decentralisation delivers a new era of data control since it is returned to the users. As opposed to traditional networks, users can freely exercise control over their data and privacy. Therefore, Web3 helps users by bringing them value, security, and transparency. 

The relationship between community members and Web3 projects is a two-way street; the interdependence between them reveals the potential for success. We have explained how Web3 helps users; let’s take a look at how community members directly aid the Web3 movement.

Fostering innovation and supporting developers

Web3 communities are very important when it comes to project development as members are involved in solution building. Community members represent the Web3 project’s target audience and by providing valuable feedback and support, they enable developers to improve existing applications and add features that align with the needs of the crypto market.

Effective communication enabled through discussions, organising events, surveys, and polls allows Web3 community members to influence decision-making while aiding developers in reaching development milestones.

Driving adoption and promoting projects

If we take a look at popular blockchain projects such as Bitcoin and Ethereum, it is evident that their success can be attributed to the contributions of their communities. Decentralised platforms rely on the relationship between developer activity and community engagement.  

Active and dedicated community members present project ambassadors that promote the project. Web3 communities provide opportunities for partnerships with other communities and expand the network accordingly. 

A healthy and passionate community provides positive word-of-mouth referrals and increases adoption over time. Satisfied existing members are the recipe for attracting new members to a Web3 community and establishing an online hub that has a significant impact on community building.

Challenges in the Web3 community building

Similar to other communities, the Web3 community is plagued with certain issues and challenges. Some of the main issues faced by the Web3 community include a lack of education, inequality, and centralisation challenges.  

If these issues are not being dealt with, they can impact the development and adoption of Web3 technologies and diminish its potential success and the ability to foster collaboration and innovation. Let’s explain them briefly.

The issue of education and educational resources

Even though popular universities such as Harvard, Oxford and Cornell have been providing courses about crypto, blockchain and Web3 technologies for a while now, the level of education within the crypto space is still an issue. 

Offered courses and other initiatives often aren’t free and require a higher level of technical knowledge which presents a barrier to entry.  

To be able to contribute to Web3 projects or participate in community initiatives, people need to understand blockchain technology. There is a lack of quality educational resources and materials as well. 

Decentralised technology is still in its early stages. Consequently, there is a lack of investment initiatives in the development of educational content and programs. To overcome these issues and make education within the Web3 ecosystem more accessible, more advocacy and investment initiatives are needed.  

We at LearnCrypto understand the importance of education and responsibility within the crypto environment and offer beginner-friendly courses, educational materials and articles. Check out our LearnCrypto Academy and start learning.

Inequality within Web3 community members

Inequality within Web3 communities is a complicated issue that can take many forms. For example, inequality can mean discrimination including an underrepresentation of certain groups of people in project development and leadership. 

Secondly, contribution-dependent projects face a problem of participation inequality. A big portion of users don’t participate and remain as an audience. This is presented as the 90:9:1 rule coined after a 2014 paper about digital health social networks.  

The 90:9:1 rule is made up of three categories – the lurkers, the contributors, and the creators. In other words, approximately 90% of users in any community are lurkers, 9% are contributors, and only 1% are creators. 

However, it is believed that Web3 has the power to facilitate an increase in community engagement and value creation to alter the 90:9:1 rule. 

Additionally, a toxic culture can be found within Web3 communities as well. Toxic online conduct is usually associated with different forms of discrimination and inequality.  

The anonymous nature of many decentralised platforms can make users act in a problematic manner without the fear of any repercussions. The competitive nature of the rising crypto industry can also lead to a less inclusive environment.

Governance and decentralisation issues

The Web3 community fosters a decentralised approach which is a fundamental principle of the whole Web3 movement. However, there is always a fear within the crypto space that a decentralised project could become centralised and undermine the network’s main mission and objectives.  

While decentralised autonomous organisations (DAOs) are governed by code, they can be influenced by a group of powerful stakeholders. Within the Web3 ecosystem, it is important to maintain the right balance between control and decentralisation.

What are the main components of Web3 community building?

Web3 communities are a great tool for the development and adoption of Web3 projects. On the other hand, the answer to the question of how to create a Web3 community might be a bit more complicated.  

It is not enough to simply onboard members; ensuring community sustainability is the main goal of any Web3 project. Community managers need to obtain knowledge and resources to manage them and overcoming significant challenges on the way while retaining existing members. 

Several major factors should be taken into account. Let’s explain them briefly.

Raising awareness and providing educational programs

Web3 communities are important in educating other users and creating awareness about Web3 technologies. Community members share resources, and materials, engage in discussions, and provide opportunities for skill development.  

If you want to create a Web3 community, you need to deal with an in-depth understanding of the Web3 and crypto culture. This includes an in-depth understanding of the culture’s highlights and distinctions from other communities.

Web3 technologies are constantly evolving; therefore, Web3 intricacies can be difficult to understand, especially for beginners. At the same time, the Web3 space is intertwined with cryptocurrencies, blockchain technology, non-fungible tokens (NFTs), and DeFi. Therefore, beginners have a lot to learn just to understand the space they are getting into.  

Fostering collaboration and collective efforts

The more public support a project gets, the higher the chance it will succeed – this is an unwritten rule in the crypto space. In other words, the stronger the online presence, the more people will decide to invest and push the project’s developments. 

This isn’t always true because a Web3 project also needs a good product and real-world use cases to succeed, but an active community that advocates for the project always helps.  

Collaboration and strategic partnerships are vital for the growth of Web3 projects. By teaming up with communities, a project can expand its reach and establish a stronger online presence. 

The crypto space needs its communities; chances are that Satoshi Nakamoto’s vision would have never taken off if it wasn’t for its early adopters and the Bitcoin community that understood its potential. 

Community management

Community management and leadership are important in maintaining an active Web3 community. Community managers need to provide support, moderate discussions, organise engagement initiatives, inform the members with progress reports, and resolve issues. In other words, they need to ensure that a community is functioning seamlessly. 

A key practice in the development of thriving Web3 communities refers to setting clear goals and guidelines. Any Web3 community building initiative should start from scratch by identifying clear goals, strategic planning initiatives and community guidelines for the community to follow.

Token incentives

Token-based incentives and rewards attract new members and retain existing members as well as foster contributions and engagements. For example, competitions, airdrops and bug bounties are approaches that drive engagement, but it is important to ensure that incentives align with the project’s main goals. 

The community token economy is a key aspect of any Web3 project; at the same time, it represents value and connection between members. Tokens represent and measure community participation and contribution.  

The community token should be progressively integrated into new features such as voting power proportional to holdings, staking rewards and paying transaction fees for community services and marketplaces.

As the community and market conditions develop, it is recommended to refine existing token distribution models and incentives to maintain a healthy token economy based on scarcity and demand.

Can community members enhance Web3 adoption?

Many blockchain projects wouldn’t exist without a highly engaged and dedicated community. The entire Web3 movement is about enabling individuals to take ownership of their data and assets through decentralisation. 

Web3 community building requires effective communication, strategic planning, good leadership, innovation, and transparent goals. When members know that their voice is being heard, it enhances their sense of ownership and engagement.  

As a result, projects get strong Web3 communities to advocate for a new technology.