Building Success Without Exploiting Members
In the rapidly evolving world of Web3, where decentralized technologies promise a future of empowerment, transparency, and collaboration, the role of community cannot be overstated. At the heart of every successful Web3 project—be it a decentralized finance (DeFi) protocol, a non-fungible token (NFT) collection, or a blockchain-based game—lies a vibrant, engaged, and unified community. However, the ethos of Web3 is often undermined when projects treat their community members as mere "exit liquidity"—a means to cash out rather than partners in a shared vision. This article explores why community unity is the cornerstone of Web3 success and why exploiting members as exit liquidity undermines the very principles that make Web3 revolutionary.
The Community as the Backbone of Web3
Web3 is fundamentally about decentralization, shifting power from centralized entities to individuals and collectives. Unlike traditional tech ecosystems, where users are often passive consumers, Web3 projects thrive on active participation. Community members are not just users; they are contributors, advocates, developers, and stakeholders who shape the project’s direction. They spread awareness, provide feedback, test protocols, create content, and even govern through decentralized autonomous organizations (DAOs).
A strong community can propel a project to new heights. Take Ethereum, for example. Its success is not solely due to its ground-breaking smart contract technology but also the global community of developers, researchers, and enthusiasts who have built dApps, iterated on scaling solutions, and championed its adoption. Similarly, projects like Aave and Uniswap owe much of their dominance in DeFi to communities that actively participate in governance, propose improvements, and foster trust in the ecosystem.
In contrast, projects that lack community unity often falter. Without engaged members, even the most technically sound protocols can fade into obscurity. A community that feels valued and empowered will rally behind a project, weathering market volatility and technical challenges. But when members are treated as tools for short-term profit, trust erodes, and projects risk collapse.
The Exit Liquidity Trap: A Betrayal of Web3 Principles
One of the most damaging practices in Web3 is the exploitation of community members as "exit liquidity." This occurs when project founders or early investors hype a token or NFT, attract a wave of enthusiastic supporters, and then sell off their holdings at inflated prices, leaving latecomers with devalued assets. Such practices are antithetical to the ethos of Web3, which emphasizes fairness, transparency, and collective benefit.
When communities are used as exit liquidity, the fallout is severe. Members who believed in the project’s vision feel betrayed, leading to disillusionment and disengagement. Social media platforms like X are rife with stories of “rug pulls” and scams, where projects vanish after draining community funds. Even well-intentioned projects can fall into this trap by prioritizing short-term gains over long-term sustainability, alienating the very people who fuel their growth.
This approach not only harms individuals but also tarnishes the reputation of Web3 as a whole. If the space becomes synonymous with exploitation, it risks losing the trust of new adopters, stifling innovation, and inviting regulatory scrutiny. A united community, on the other hand, fosters resilience, attracts genuine investment, and drives organic growth.
Building Community Unity: The Path to Sustainable Success
To harness the true potential of Web3, projects must prioritize community unity over extractive practices.
Here are key ways to achieve this:
Transparency and Communication:
Projects should maintain open channels with their communities, sharing clear roadmaps, development updates, and financial decisions. Regular AMAs (Ask Me Anything sessions), detailed whitepapers, and public audits build trust and ensure members feel included.
Shared Ownership and Governance:
Web3’s promise lies in decentralization, and communities should have a real stake in projects. DAOs, token-based voting, and incentive structures like airdrops or staking rewards empower members to shape the project’s future, aligning incentives between founders and supporters.
Valuing Contributions Over Capital:
While financial investment is important, Web3 projects thrive when they recognize diverse contributions—whether it’s coding, content creation, or community moderation. Rewarding non-financial contributions fosters loyalty and inclusivity.
Long-Term Vision Over Short-Term Hype:
Projects must resist the temptation to inflate token prices or NFT values for quick profits. A focus on sustainable growth, backed by real utility and innovation, ensures that communities remain committed even during market downturns.
Education and Onboarding: Web3 can be intimidating for newcomers. Projects that invest in educating their communities—through tutorials, documentation, or mentorship—create informed, engaged members who are more likely to contribute meaningfully.
Case Studies: Community-Driven Success
Look at projects like Chainlink or Bored Ape Yacht Club (BAYC). Chainlink’s community of node operators, developers, and advocates has been instrumental in making it the leading oracle network, with a robust ecosystem of partnerships and integrations. BAYC, meanwhile, transformed from a collection of NFTs into a cultural phenomenon because its community—empowered through exclusive perks, events, and creative opportunities—became its biggest evangelists. These projects show that when communities are treated as partners, not pawns, success follows.
Conversely, projects that exploit their communities often fade. Numerous DeFi protocols from the 2021 bull run, for instance, collapsed after founders dumped tokens on retail investors. The absence of community trust and engagement left these projects unable to recover.
A Call to Action for Web3
The Web3 ecosystem is at a crossroads. As it matures, the difference between fleeting hype and lasting impact will come down to how projects treat their communities. Unity, built on trust, transparency, and mutual respect, is the foundation of every successful Web3 endeavour. By rejecting the exit liquidity mindset and embracing community-driven growth, projects can create ecosystems where everyone thrives—not just early insiders.
For Web3 to fulfil its promise of a decentralized, equitable future, communities must be at the centre, not on the side-lines. Let’s build a Web3 where members are valued as co-creators, not exploited as exit liquidity. The success of this revolutionary space depends on it.
Warm regards,
General Kev
Task Force Founder
P.S. Stay tuned for news about Operation Safe Place and The Citadel! We have intel to share about an online community based project that may just be what we are looking for!
Here's a sneaky peek for those that are curious:
https://generalkevstaskforce.com/profile/osp-citadel
