89
Community-driven crypto is a kind of crypto protocol that banks greatly on its community for strength. This type of coin usually relies on extraordinary community support. In other words, its development is community-driven. The community decides on resources control and the process of development of the cryptocurrency spreads the word about the project and gets involved in a variety of initiatives. Some examples of this kind of coin include Ravencoin, Verge coin, ReddCoin, Safemoon crypto and DigiByte.
What are community-driven cryptocurrencies?
As mentioned earlier, a community-driven coin derives its strength from its community. They hold a large influence on the direction the cryptocurrency will take in terms of development, resources, team, promotion, and lots more.
For this kind of crypto, a sort of partnership is established between the founding team, developmental team, and the community. All hands must be on deck for the crypto to be a success.
For this reason, community-driven cryptocurrencies must involve the community at all levels from the level of the network, the level of coin distribution to the level of making decisions and development.
That community factor must be apparent to drive the project to success. The emergence of community-driven coins like DigiByte coin, Safemoon token, Verge (XVG), Ravencoin, RDD has modified some features of the cryptocurrency market. Most now see community participation, democratic voting, and crowdfunding as key aspects of the decentralized ecosystem.
List of 5 community-driven cryptocurrencies:
There are several community-driven coins in the market. However, our focus will be on ReddCoin (RDD), Verge coin, Ravencoin crypto, Safemoon crypto, and Digibyte coin.
Verge (XVG)
What is XVG coin? The Verge XVG is a cryptocurrency blockchain with the goals of providing an effective, privacy-focused, decentralized, and swift payments network. Verge XVG also aims to improvise on the BTC blockchain. Some of these improved features are extra privacy features such as incorporating the TOR anonymity network into the VergePay digital wallet. This integration comes with an option of processing transactions to stealth addresses.
According to the Verge project, the XVG coin project is a community-driven cryptocurrency. The project mostly depends on volunteers and certainly prides itself in being an open-source project to all.
DigiByte (DGB)
What is DigiByte coin? It is another popular community-driven cryptocurrency. DGB coin is presented as an open-source network with an asset creation platform which makes it very intriguing for its community. In October 2013, works on DGB coin began and the very first block of DigiByte coin was mined in January 2014.
DGB coin utilizes five distinct algorithms with the aim to improve security. These algorithms were initially developed to improve BTC’s blockchain capacity, transaction speed, and security.
The project also consists of three different layers of different functions and they are:
- A smart contract “App Store”
- A core protocol that has nodes connecting to relay transactions
- A public ledger
DigiByte operates a governance structure based on volunteering to bring the project in line with the vision that it has and that is to be accessible to the public and open-source. Miners earn DGB as a reward for participating in the network.
Ravencoin (RVN)
What is RVN coin? Ravencoin (RVN) is another top community-driven cryptocurrency of the crypto world. The Ravencoin crypto is recognized as a digital P2P blockchain network with the goal of establishing a use case-specific network. Ravencoin crypto is developed to perform one specific function efficiently, which is to transfer digital assets from one party to another.
It was built on a fork of Bitcoin code and launched on the 31st of October, 2017. It further released binaries for mining on the 3rd of January, 2018. Its launch was dubbed one of the fairest launches in crypto as it was launched with no pre-mine, ICO, or master nodes. The name Raven was inspired by the popular TV show “Game of Thrones”.
To ensure a perfect synchronization, Ravencoin (RVN) utilizes KAWPOW, which is a variation of the proof of work consensus. The purpose is to reduce the barrier to entry to mining on the RVN network.
The KAWPOW functions in a very similar pattern with the proof of work on Bitcoin in terms of securing the network. Ravencoin crypto makes use of KAWPOW via a network of computer nodes running the protocol’s software. This in turn secures the network and validates transactions whilst distributing the newly minted RVN token.
ReddCoin (RDD)
The ReddCoin (RDD) is a community-driven cryptocurrency with a very intriguing use case. Fundamentally, the RDD coin is a digital currency developed for tipping and making social media payments transactions.
The RDD coin is the token that is used to power the RDD network, which is a volunteer-run organization and social tipping protocol that allows you to make donations, support, or help several cases globally. Having been launched way back in 2014, it is one of the long-lasting ones in the crypto world.
RDD transactions on the Redd network are relatively cheap and simple to use, making it a good mode of payment. Most importantly, it’s an innovative mode of payment for most social media platforms as it allows users to easily transact with their friends, families, and followers.
Its mode of operation can be viewed in the same pattern as the Snapcash and Facebook cash for both Snapchat and Facebook users respectively.
Safemoon (SAFEMOON)
What is Safemoon crypto? It is a token with three functions, which are Burn, LP Acquisition, and Reflection. The DeFi token allows token holders to earn more Safemoon crypto based on how many tokens they hold in their wallets. They could earn up to 80% APY, a mouthwatering return on the initial investment.
It is reported that the Safemoon coin has a plan to create an NFT Safemoon exchange, crypto educational applications, and charity projects. The protocol itself combines the tokenomics of RFI and auto-liquidity generation. Due to its deflationary nature brought about by Safemoon’s crypto-burning strategy, you can expect the Safemoon token to increase in value over time.
Being launched in March 2021, Safemoon crypto has gained an unbelievable fan base and gathered around a super-driven community. This is all thanks to the killer marketing strategy and the amazingly involved team behind the project.
How to use these cryptos?
The way to use these cryptos varies on a case-by-case basis depending on what the creator intends for the coins to be used for.
However, generally, the use case remains using them as a store of value, for making payments, trading, and for governance purposes. You can find more information about the specific use case of each coin in the respective article on Swapzone.
Are these coins a good investment?
Community-driven cryptocurrencies like Safemoon coin, Ravencoin, DigiByte coin, Verge coin, and ReddCoin are created with admirable goals, although in the crypto world, success is not guaranteed. However, if a crypto project is able to constantly attain its aims and provide a clear vision, it is most times set up for success as we have seen with prosperous coins in the crypto market. Achieving extensive adoption is necessary for any crypto to be considered a long-term success.
With the way these cryptos are set up, their popularity, widespread adoption and constantly growing communities it is easy for them to achieve mass adoption, and that makes them coins to watch out for. Investors that set up early are likely to make a massive gain as adoption of the coins is in the process of spreading far and wide at a high pace.
Benefits of $XVG, $DGB, $RVN, $RDD and $SAFEMOON
The key advantage of a community-driven token is that it helps to retain users and motivates them to be active in network participation. An active community is a key to a cryptocurrency’s success in the market.
Generally, community-driven cryptos stand a better chance of success provided the community is committed. This stands to benefit investors and users who could see their investments increase in value over time.
There are other benefits that come with each token such as the Safemoon mouth-watering APY or RDD ability to make micropayments and social media tipping. These tokens are unique in what they bring to the market.
How to exchange these coins on Swapzone?
You can trade any of these community-driven tokens on Swapzone. Here, you can carry out Safemoon exchange, DigiByte coin exchange, Ravencoin exchange, ReddCoin exchange or XVG coin exchange.
Step 1. Visit Swapzone and select the token you want to receive in the “Get up to” field. But first, ensure you know the exact amount of crypto you want to buy.
Step 2. Swapzone will pull up all the options for Safemoon exchange, XVG coin exchange, DigiByte coin exchange, Ravencoin exchange or ReddCoin exchange depending on what you selected before.
Step 3. After you are satisfied with the token rate and transaction fees, input the number of cryptos you want to exchange.
Step 4. Select the exchange that suits you by clicking on the “Exchange” button.
Step 5. Input the address where you want to receive the crypto.
Step 6. There is also an option for a refund address, which is the address where the asset you are swapping for the cryptocurrency will be refunded to incase of any issues.
Step 7. Click on the “proceed the exchange” button to carry out the exchange.
Step 8. Please, rate your experience and write a review for the selected exchange partner.
