What is Community Driven Token?
Throughout history, communities have played an essential part in how humans come together to share ideas, collaborate and align themselves with each other to incorporate a common identity. Since the start of the human race, it has been embedded in human nature to naturally form tribes, factions, or groups in order to work together and produce better results than if we were to operate alone. Fast forward to the present, communities are more prevalent than ever in our society. However, since everything has revolutionized, communities have too. It is no surprise that most of our social groups have now been digitized, and most communities we form are online. Innovated technologies like smartphones have further provided us with access to endless unique groups or social networks, with almost everything being accessible with only a few clicks. As with any significant movement in humanity over the last century or two, technology is at the core of our progression in every part of life. Blockchain and cryptocurrency are considered the biggest trend of the century and the most important invention after the internet. These cryptocurrencies or “digital coins” are supposed to offer an alternative transacting method to the people, providing a much safer and easier substitute to traditional paper money or fiat cash.
However, this purpose cannot be fully achieved without wide community acceptance. This is where Community Driven tokens or coins come in. Since cryptocurrency projects are based on revolutionary blockchain technology, they require an ever-evolving and growing public network for their function. This is the reason cryptocurrencies have to engage communities on every level.
In the last few years, community tokens have exploded widely, and a big exciting boom occurred. So, to grasp the emerging concept, let's take a closer look at what a community token is and how it is all set to revolutionize the digital finance world. Community tokens, primarily, are created as a means to gain access to a community. They're a type of cryptocurrency that is specifically designed to open the doors to some particular digital groups based on blockchain. These groups are then responsible for driving the token and all the critical decisions of its ecosystem.
As the name 'community-driven' indicates, these tokens are, in fact, driven by communities. They have no single owner, unlike other centralized finances or banks. No single upper authority controls all the token's important decisions. Instead, all the decisions and authority rests with the Community or the group behind the token. Since decentralization is the essence of blockchain, community-driven tokens fulfill this claim in their true form.