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Without a specific idea of the good to build towards, the financial interests of large tokenholders have become over-represented in protocol governance. In our view, this constitutes a centralization risk.

Good decentralized network governance is one that steers the network through its various stages of development towards more innovative and socially useful functions, while adequately resolving conflicts between different stakeholders participating in or affected by the network.

Governance rights: prevent distributing ownership and voting rights to stakeholders that don’t benefit the protocol over the long-term

In a highly decentralized system, these operations invert such that the community finds product solutions themselves: "market-product fit." Cryptoeconomic protocols are market frameworks looking for potential product applications. The work of exploring parallel narratives, discovering emergent use cases, and testing solutions is distributed among m... See more

Concentrated ownership can lead to concentrated governance power. If venture capitalists control crypto networks they are likely to shift from minimal to maximal rent extraction over time, thereby undermining cooperative principles and ecosystem interests.