Paper Number
ECIS2026-1139
Paper Type
CRP
Abstract
This paper examines how power centralizes in ostensibly decentralized blockchain communities. Drawing on a digital ethnography of “Renada,” a non–VC-backed, community-run blockchain project, it analyzes how governance is enacted through both on-chain mechanisms and off-chain practices on Discord. It applies threat-rigidity theory to explain how moments of perceived crisis—such as a community failed vote, token listing, and a hard fork—trigger increased centralization, despite the community’s strong ideological commitment to decentralization. It introduces the concept of the “illusion of choice” to explain how centralization is maintained: although members always have the option to exit or fork off, they may be limited by technical skills and financial risks. The study highlights hidden points of control in peer production and underscores the crucial role of off-chain governance in blockchain communities.
Recommended Citation
Shaw, Claire, "THE ILLUSION OF CHOICE: THREAT RIGIDITY AND CENTRALIZED POWER IN DECENTRALIZED BLOCKCHAIN COMMUNITIES" (2026). ECIS 2026 Proceedings. 1.
https://aisel.aisnet.org/ecis2026/gen_track/gen_track/1
THE ILLUSION OF CHOICE: THREAT RIGIDITY AND CENTRALIZED POWER IN DECENTRALIZED BLOCKCHAIN COMMUNITIES
This paper examines how power centralizes in ostensibly decentralized blockchain communities. Drawing on a digital ethnography of “Renada,” a non–VC-backed, community-run blockchain project, it analyzes how governance is enacted through both on-chain mechanisms and off-chain practices on Discord. It applies threat-rigidity theory to explain how moments of perceived crisis—such as a community failed vote, token listing, and a hard fork—trigger increased centralization, despite the community’s strong ideological commitment to decentralization. It introduces the concept of the “illusion of choice” to explain how centralization is maintained: although members always have the option to exit or fork off, they may be limited by technical skills and financial risks. The study highlights hidden points of control in peer production and underscores the crucial role of off-chain governance in blockchain communities.
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