DeFi Forks Will Have A Hard Time Because It’s Hard To Fork A Community

DeFi forks will have an extremely hard time as it was witnessed with the Bitcoin Cash fork as well since they represent a huge community. Farming schemes though very lucrative, only a few of them will generate long-lasting communities so let’s find out more about this in our latest cryptocurrency news.

Bitcoin vs Bitcoin Cash was the main example of how crypto markets see unoriginal forks that change just a few features. DeFi forks that create communities still have to compete with the original protocol and add more value later on. DeFi forks are popping up everywhere but they fail to become more than a farm and dump scheme because of the lack of genuine community. Even with the few projects that can establish a community, their future will be uncertain.

The term community gets thrown around a lot but what does it mean? A community is a group of investors, developers and users that support one crypto network. In an open-source ecosystem, communities are the most important aspect of a project as they help create value through adoption, organic marketing, and usage. The community is what gives the project life. They are strengthened when they are grouped with a similar identity and some of the examples here include Synthetnix Spartans, Band Jedis, and Link Marines.

yEarn finance is another great example of how the community that is robust can grow a project. YFI went from $0 to $1 billion in market cap in less than 30 days but this was not only empty growth. yEarn provided real value for the Defi community and saw huge blocks of capital enter the protocol. A few other copycats attempted to recreate its success but they were unsuccessful. A few have molded their own communities so they are rivaling the original protocol.

The BTC community for example in 2017 had its first major split. One side wanted a smaller block size with SeGWit the rest wanted an increased block size limit from one MB to two MB. A larger part of the community backed the smaller block size while the big blockers forked away and formed Bitcoin Cash. When this happened, a lot of investors were not sure of the effects on the Bitcoin market value, but they both did well. Bitcoin Cash has since raised its block size to 32 MB with a daily average block size settling at 500 KB since 2018.