Open source software may be a good model to look at. People contribute bc they want to, regardless of any monetary remuneration.
But it's hard, and a for-profit corporation can often move forward more quickly to develop an objectively better project. Except even though they *could", they (usually) don't, and really they have zero reason to, bc their goal is to make a profit, not a product. Reddit vs. Lemmy/Kbin/Mbin/etc. is one such example.
But it gets complicated bc of all the counterexamples, like at one time Google really was awesome, and free, so most of the open source projects did not push hard to replace it, bc it worked so well for so many. Similar to Lemmy I suppose - before the Rexit it had existed for many years, but it wasn't until that shakeup that it was propelled forward extremely quickly by the influx of developers, e.g. who made the front end apps. Before that, the Reddit experience was fairly good even if not great, so not as many people bothered.
Necessity is the mother of invention.