The Hidden Power Game in Crypto Projects

Market rallies have a way of exposing fundamental questions that never really went away. In the current cycle, one tension is becoming impossible to ignore: the growing gap between those holding tokens and those holding equity stakes in crypto projects.

It's a messy situation. Protocol control, value capture, and risk distribution aren't equally distributed—and that creates friction.

Think about it: who actually governs the protocol? Who pockets the returns when things go well? And when things go sideways, who absorbs the losses?

These aren't rhetorical questions. The answers reveal uncomfortable truths about power dynamics and incentive misalignment in many projects. Token holders might have governance rights on paper, but equity holders often shape strategic decisions behind the scenes. Meanwhile, everyday community members end up caught between competing interests.

This structural issue becomes sharper during market cycles. Early supporters with equity access enjoy different risk-reward profiles than public token buyers. Liquidity, exit options, dilution schedules—all of it favors certain stakeholders over others.

The crypto space keeps talking about decentralization, but this disparity shows how much work remains. Understanding these power structures isn't just academic—it's essential for anyone evaluating where value actually flows in Web3 projects.