Strategic leadership of decentralized cryptocurrency and Web3 communities

Abstract

This chapter enquires into the strategic leadership of communities based on public blockchains. The authors review the emergence of cryptocurrencies, from Bitcoin to Ethereum to the current landscape known as Web3. The domain is diverse and dynamic, so they structure their analysis around five categories of public blockchains - store of value, world computer, stablecoin, centrist coin and memecoin - which they use to analyse how the different markets have changed over time. They proceed to examine the distinctive nature of strategic leadership in this domain by focusing on two key concepts: prefigurative strategy and decentralized leadership. Focusing on those public blockchain communities that are committed to decentralization, they identify and discuss four coordinating mechanisms they employ as an alternative to managerial hierarchy: algorithmic authority, charismatic authority, community channels, and governance tokens. They argue that strategic leadership in blockchain communities is centrally about conceptualizing, designing and implementing a polycentric governance system drawing on a dynamic mixture of these coordinating mechanisms.