As we near the quarter-mark of the 21st century, the impact of global digital migration is profound, with significant portions of life and society now conducted online. Currently, around 67.5% of the global population has internet access, while the European Union stands out with 93.1% of households connected. This transformative trend is evolving towards Web3. However, Web3’s development, while promising numerous benefits, is accompanied by concerns over the imbalance of power between creators and consumers.
Initially conceived as decentralized, Web3 platforms are increasingly characterized by exploitative or manipulative protocols. Some projects turn out to be illegal scams, as evidenced by the $5.6 billion lost to cryptocurrency scams in the United States in 2023. Power is concentrating among a few, posing a threat to the decentralized ethos of Web3. Rebalancing this power involves equipping communities with tools for decentralized governance via blockchain technology.
Memecoins, or community coins, though often lacking traditional utility, are crucial to empowering communities. Yet, these coins are vulnerable to manipulative schemes favoring insiders, thereby undermining their potential for democratic governance—a foundational principle of crypto.
To tackle this manipulation, memecoins should be developed alongside decentralized autonomous organizations (DAOs) that allow coin holders collective governance rights. This ensures community interests are central in decision-making, promoting growth that reflects real-life social behavior. DAOs are already reshaping decentralized finance, as seen with the Uniswap DAO managing its $6 billion treasury through community voting.
As Web3 develops, ensuring it remains resistant to exploitation is paramount. Building community-driven infrastructures such as DAOs and community coins can return power to the digital populace, safeguarding the promises of decentralized finance and governance. Caution and careful development will protect the integrity and transformative potential of Web3 as it progresses.
