How a Ukrainian community is using ‘citizen tokens’ to move beyond aid

When war forced Inna Starchikova to flee Odesa with her two teenage children in 2022, she endured what thousands of Ukrainians have experienced: an overcrowded evacuation train, the constant threat of missile attacks, and the fear that comes with leaving everything behind. After a sleepless night of travel, she arrived in Rudky, an administrative centre in western Ukraine that, along with its 30 surrounding villages, would become not just her temporary home, but the site of a remarkable experiment in community resilience.

“The first weeks were overwhelming,” Inna (pictured) recalls. “We were sheltered on the previously unused upper floor of an elder care home that was reopened specifically for displaced people. The staff did their best to provide heating for a few hours each day. While everyone showed incredible kindness, I couldn't shake the feeling of being a passive recipient of aid.”

This feeling – the uncomfortable position of dependency – is familiar to millions displaced by conflicts worldwide. But what happened next in Rudky challenges our traditional understanding of humanitarian support.

From recipients to participants

Instead of remaining in the role of aid recipient, Inna drew on her knowledge of the Community Resilience Foundation – a Citizen Token System-based model designed to build self-sustaining circles of support. (She and I had collaborated before on different community initiatives, using earlier iterations of the Citizen Token System.) At its core, this approach asks a fundamental question: Does traditional help truly improve resilience, or does it risk creating long-term dependency?

“The CTS approach is simple to understand but powerful in practice,” Inna explains. “Community members contribute their time, skills, or resources toward community needs. In return, they receive ‘governance tokens’ – a recognition of their contribution that gives them a say in how community resources are allocated.”

In Rudky, Inna helped this to take shape by helping to facilitate the launch of a Community Resilience Foundation model there. With just 100,000 UAH (about $2,500) as starting capital from the Global Fund for Community Foundations, the Community Resilience Foundation in Rudky became the engine of a new approach.

How it works in practice

Here is what makes this system different from traditional aid.

1. Participation comes first. Community members earn tokens by contributing to the neighbourhood, such as organising activities for children, helping elderly neighbours, sharing professional skills, or volunteering for community projects.
2. Democratic decision-making. The community members use their tokens to vote on how to allocate the resources, typically directing funds toward local entrepreneurs with promising ideas that benefit the community.
3. Regenerative cycle. Supported entrepreneurs agree to return the funds to the foundation over time, allowing the funds to be recycled for new initiatives.
4. Building customer relationships. Nearly 90% of token holders become customers of the businesses they support (spending their own money to buy products and services) – creating a natural market for emerging entrepreneurs while strengthening community bonds.

Real results in challenging times

The impact across the Rudky community and its surrounding villages has been remarkable. Maria, who opened Zerno, a cozy bakery and café, received interest-free funding through a community vote to complete renovations and purchase equipment. “When the community supported my project, it wasn’t just about the money – it gave me strength and hope to move forward,” she says. Within the first month, over 600 purchases were made by 140 community token holders. (The purchases were made in real currency; not with community tokens.)

Sviatoslav’s butcher’s shop expanded its offerings after receiving community support to purchase a new freezer. Over three months, 1,747 purchases were made by 156 token holders, reinforcing the shop’s role as a trusted local supplier.

When missile attacks on Ukraine’s energy infrastructure caused frequent blackouts, Iryna's Duet Café installed a backup generator funded through a community vote. This ensured the café remained a vibrant gathering place for the town, with over 15,000 purchases made by token holders over four months.

Over the first 16 months alone, the modest grant of 100,000 UAH from the Global Fund for Community Foundations catalysed more than 1.26m UAH in added value, spanning 22 initiatives with over 400 participants. And this impact continues to grow as the model matures.

Beyond charity: a framework for trust

“What we’re building isn’t charity – it’s a framework for trust,” explains Inna. “Seeing how people believed in each other and chose to act together was the most powerful part of our journey.”

This distinction is crucial. Traditional aid often focuses on addressing immediate needs, which is essential during crises. But the Citizen Token System creates pathways for communities to rebuild their economic and social fabric through active participation rather than passive receipt.

After her time in Rudky, Inna returned to her home city of Odesa. Now, as the director of the Moloda Gromada Foundation, she’s applying these lessons to launch similar resilience cycles in her native region and other interested communities across Ukraine.

“This approach isn’t just for crisis situations,” Inna emphasises. “Any community facing challenges can benefit from creating these circles of trust and mutual support.”

For communities worldwide dealing with hardship, displacement, or recovery from disaster, the lesson from this Ukrainian rural community is clear: resilience doesn’t come from what is given to you, but from what you build together.

Vadym Georgienko is the developer of the Citizen Token System (CTS), a civic framework for regenerating trust, participation, and local economies. On 12 June 2025, the Moloda Gromada Foundation will host an online conference called Citizen Capital: Solutions from Within to share outcomes. Those interested in this approach can contact the organisers via this online form.