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What Keeps Blockchain Communities Together?

This post is a summary of a presentation given by Josey at a Token Engineering Commons (TEC) Research Hub event, brought to you by the TEC.

Token Engineering Commons

Token Engineering Commons

In the world of blockchain, we often hear that code is law, trust is minimized, and incentives reign supreme. But what if the most powerful force in decentralized communities isn’t technical at all?

In the opening talk of the TEC Research Hub series, social scientist Josey Beets shared research that flips conventional wisdom on its head. Her core message: it’s not incentives that keep people coming back—it’s identity and social connection.

From Primates to Protocols: Why Identity Matters

Josey begins with an unexpected comparison: humans and other primates. Like our evolutionary cousins, we are “hypersocial”—wired to bond, share, and cooperate at scale. In Web3, where users are often pseudonymous and geographically scattered, this presents both a challenge and an opportunity.

How do we build trust and connection without physical proximity or institutional anchors?

Her answer: through social technologies like rituals, shared narratives, gossip, and humor—many of which are already present in blockchain communities.

The Research: What Drives Loyalty in Blockchain Communities?

Josey’s team received an Optimism academic grant to study identity and group formation across several protocols including Optimism, Beets, Velodrome, and Byte Masons. They used interviews, surveys, and ethnographic methods to explore how people form emotional bonds with blockchain communities.

The results were striking. Three factors consistently predicted user loyalty and identity fusion:

  1. Social Rewards

    • Having meaningful relationships

    • Feeling like your actions matter in the community

    • Enjoying time spent—even without profit

  2. Positive Outlook

    • Belief the protocol will last

    • Low skepticism or “scam” concerns

  3. Investment Level

    • Time and effort committed—not just tokens

Surprisingly, financial rewards were not a significant factor in long-term bonding. People aren’t staying just for the money—they’re staying for each other.

The Goldilocks Zone of Community Design

Another key finding was that communities need balance. Too much or too little of any element can hurt cohesion.

  • Size: People support growth but worry it will dilute authenticity.

  • Structure: While decentralization is valued, members still want visible, approachable leaders.

  • Communication: Communities thrive when there's a healthy mix of serious discussion, light-hearted chat, and shared humor.

When these dynamics fall out of balance, group cohesion suffers—even if the protocol is technically sound.

Trust in a World of Bots and Agents

As automation and agents take on more decision-making in Web3, Josey raises an important question: What happens to social bonds when we delegate to machines?

While bots can improve efficiency, she argues that human connection remains irreplaceable. Parasocial relationships—like seeing lead devs on podcasts or AMAs—can help build trust. But ultimately, authentic interaction and shared identity are still key.

Lessons for DAO Builders and Community Stewards

Josey’s talk leaves us with a powerful reminder:
Without community, the protocol doesn’t exist.

So if you're designing for the long term, don’t just optimize for efficiency or token flows. Design for identity. Design for bonding. Create space for humor, ritual, and meaningful interaction.

Because in the end, it’s not code that keeps people coming back—it’s connection.

Watch the full talk:

👉 Identity and Group Formation in Blockchain | TEC Research Hub

Read the published study:

👉 Frontiers in Blockchain, March 2025

What Keeps Blockchain Communities Together?