One of the core tenets of decentralized systems is the emphasis on “community,” which suggests that decisions are made collectively, and the network is governed by its users. However, as we have continued to see across today’s emerging technologies, this philosophy often clashes with reality.

While promising, decentralized infrastructures are frequently misunderstood in their application as they have been demonstrated thus far in the cryptocurrency and digital asset sector. The historical lack of oversight and a fundamental, digestible regulatory framework, has continued to allow projects (and their leadership teams) with pre-mined tokens, insider deals, and unfair distribution practices to benefit only a few – all while continuing to tout ‘community’ across the public forum and social channels.

Oversaturation of “Community” and its Contradictions

Centralized Power Structures

What remains to be baffling, is this misguided belief that we are battling against “centralized” infrastructures, of which everything we have come to know, love, and depend on day-to-day is built upon and operates from. To be clear, there is no battle or war between ‘centralized’ and ‘decentralized’ technologies, despite what you may have read or been told.

You may better recognize this deception through the never-ending “Web2 vs. Web3” arguments at today’s fintech and cryptocurrency conferences around the world. Since this foundational understanding of today’s digital infrastructure continues to be lacking, the very systems we use to build upon or from allow us to utilize, integrate, and/or otherwise execute these new, innovative solutions.

Token-Holders as Shareholders

Over the past five years, token-holders have often been characterized as and/or loosely portrayed as a group of individuals similar to that of shareholders, where those who hold the most tokens have often been the ones brought into critical governance conversation, creating a system that favors the wealthy.

Despite the decentralized ethos, many decentralized systems often devolve into a few individuals or groups wielding significant influence. Naturally, this can lead (and has led) to a concentration of power that undermines the democratic principles of decentralization.

Community Takeovers and Memecoin Culture

Memecoins, or digital currencies based on internet memes or jokes, have gained significant popularity over the years (thanks, Pepe), but often lack fundamental value or utility beyond hype and marketing fluff. Their rapid rise and fall further adds to the current market volatility and contributes to a speculative atmosphere that understandably has earned the negative reputation it continues to carry with it.

The popularity of memecoins can be easily manipulated through social media and online forums, leading to sudden price spikes and crashes, Pepe the Frog, serving as the best case study. This “impulsive” focus on memecoin culture has served merely to divert attention and resources from more promising projects that aim to solve real-world problems, not create new ones. \And the consequence in which they have been used as “the next tool” for concocting and executing scams or “rug pulls” with unscrupulous actors continuing to promote worthless tokens to unsuspecting investors.

2024 has been quite the year to which this meme coin bull run has been pushed by community takeovers. In a recent interview with Decrypt, I shared my insight surrounding the potential legal implications members of community takeovers could face, specifically as it pertains to intellectual property (IP) ownership rights.

A fellow lawyer and colleague of mine expanded upon those concerns. “One of the biggest dangers [for community takeover teams] is going to be misleading marketing, unfair or deceptive trade practices, or maybe even criminal misrepresentation or fraud,” said Charlyn Ho, founder and managing partner at Rikka Law.

Forget the hype and start focusing on the underlying message your leadership team wants to convey to its audience, including the specific value-add its bringing to the industry as a whole. When these “crypto bros” or “degens,” as they are commonly described across Crypto Twitter, are the individual(s) in charge of the project, the likelihood and risk of falsely advertising the token begins to increase.

What Is a Fair Launch?

Many projects committed to the ethos of decentralization and fairness have started to change their approach in embracing a new framework. These projects, or ‘altruists,’ believe in launching their tokens without preferential treatment, ensuring everyone—from early adopters to latecomers— has an equal opportunity to participate.

The approach of a ‘fair launch’ is grounded in the belief that the success of a project should be shared by the entire community, not just a handful of insiders. This philosophy is what drives the concept of a fair launch: transparency, equality and trust within individual communities.

A ‘fair launch‘ is a token distribution mechanism where tokens are not pre-mined or allocated to insiders before the public can participate. This eliminates “special privileges,” ensuring everyone has an equal opportunity to acquire tokens. By fostering a more equitable network, fair launches aim to rebuild trust and transparency in the market.

It’s Time to Rebalance the Wealth and Power

When we’re talking about wealth and power concentration, a common problem we’ve continued to see in projects, revolves around a small group who controls a significant portion of a project’s tokens, opening up the doors to manipulation and governance issues, as we’ve seen.

Fair launches, on the other hand, serve to distribute tokens more equitably, aligning with decentralized principles and reducing the risks of centralization. They symbolize a commitment to genuine decentralized infrastructures, avoiding hype and tacky sales tactics. Instead of relying on self-proclaimed ‘crypto influencers,’ a project’s success should be driven by its community’s active participation and measurable contributions. This level of sophisticated engagement is essential for the long-term viability of any decentralized solution, regardless of its target market.

The decentralized market’s current solutions are largely hindered by the ambitions and perspectives of their developers and leadership. Ego and greed, often driven by fear, have skewed their intentions. This fear, rooted in a belief that those closest to us, including members of a team, will ultimately betray us, leads to a desire for control. This, in turn, fuels ego and greed, creating a cycle that undermines the very principles of decentralization.

The crypto and blockchain community, as we have come to know it is/has been filled with countless ‘groundbreaking’ projects, but many fail due to unsustainable tokenomics and unfair practices.

‘Tokenomics’ needs to be redefined; it isn’t a “buzzword,” but a foundational principle that should guide each and every aspect of a system that promotes fairness, transparency and sustainability. This long-term focus sets them apart from projects that prioritize short-term gains.

Decentralized Governance and Sustainability

CoreDAO, for example, is a community charged with overseeing the Core network. According to its whitepaper, its responsibilities include (but are not limited to) adding to the number of validators, regulating governance parameters, and setting the percentage of block rewards and transaction fees that are burned. Upon its initial launch, CoreDAO had no pre-mining or insider allocations, allowing its audience to fully participate in the network’s growth and success.

Its governance model, which it describes as “progressive decentralization,” lays out two primary “maintenance objectives”: providing a phase path towards decentralization and minimizing risks to DAOs building upon Core Chain. Currently, Core Chain is in its “limited on-chain governance stage.”

Secure and Fair Yield Generation

Wise Lending is another project that embodies the principles of fairness and long-term sustainability. Launched with a fair token distribution, Wise Lending allows users to lend and earn interest on their crypto assets without giving up control of their private keys. The platform’s smart contracts are thoroughly audited, and its tokenomics are structured to ensure that rewards are fairly distributed over time.

Wise Lending’s commitment to transparency and fairness also extends to its lending practices. Users can choose the terms of their loans with clear and straightforward agreements that minimize the risk of hidden fees or unfair practices.

Financial Empowerment

MOR.org represents another pillar of a more decentralized future: financial empowerment and inclusion. The platform was launched with no pre-mined tokens and a commitment to fair distribution. The platform aims to provide users with tools to manage and grow their crypto assets in a secure, decentralized environment.

As our digital financial infrastructures continues to evolve, it’s crucial for investors and users to support projects that align with these principles, choosing to back platforms committed to fair practices and sustainable growth.