After the #capitalist state has been overthrown, the community will organise a transitional institution# in order to develop a socialist mode of economy. From that nature, communism will start to develop and establish itself into the newly built society.
First Phase
In the first phase of communism, the means of production is going to be converted from private property# to common property, which means they should be own by the community. The other way around will be coded to be vile and punishable in such society.
The equal distribution of social consumption fund will be established. The social consumption fund is derived from the remained state funds deducted from necessary community maintenance. It will be distributed according to the labour performance, that is how much work does the individual has worked.
However, there will be still inequality in this phase of communism, as there are differences between individuals in, for example, strength, marital status and burden from the family. Because of these differences exists, different individual could have owned variety of wealth which will resulted in wealth inequality.
Turning the spotlight to #the state. The state itself has yet been eliminated as there is a necessity on safeguarding the common ownership of the means of production which secures the equality of labour and the distribution of products accords to the labour performed.
Higher Phase
As the community accustomed to the practice of division of labour, the members of it will come to the realisation of the principle “from each according to his ability, to each according to his need”. In such community, there will be no distinction of mental and physical labour, and working will become a virtue not merely for a livelihood.
In this stage, we could that the society has entered a higher phase of communism.