Pyramid-Style Referral Systems
Marketed as community. Structured as a pyramid. Early participants profit. Late participants fund them.
Some projects and platforms rely almost entirely on recruitment. You don't earn primarily from the product — you earn by recruiting others. The reward structure is explicit: commission for every new member, bonuses for growing a larger network, and status levels tied to recruitment performance.
When growth slows, the system collapses. Early participants profit. Late participants fund them.
It is marketed as "community." But structurally, it operates like a pyramid scheme.