Community Ownership Model

Definition ∞ A community ownership model distributes control and economic benefits of a project or platform among its users or contributors, rather than centralizing them with a single entity. This approach often involves token-based governance mechanisms, where digital tokens grant voting rights and a share in the project’s success. It aims to align incentives and foster active participation among a distributed group. Such models are a core tenet of decentralized autonomous organizations.
Context ∞ The current state of community ownership models involves active experimentation with various governance structures and token distribution strategies within decentralized finance and Web3 projects. Key discussions often address the challenges of voter apathy, whale dominance, and effective decision-making in large, distributed groups. Future developments focus on creating more accessible and equitable governance tools to enhance genuine decentralized control.