Venture capital formation for software cooperatives

While many crypto startups have successfully made their users into owners by following the Progressive Decentralization playbook, a number of founding teams feel compelled to step back from their projects at the time of token launch to reduce the risk that their tokens will be deemed securities. An alternative path may allow founders to stay involv... See more

-Cryptonetworks and decentralized autonomous organizations (DAOs) as the future of internet-native co-ops: Such networks address two major issues that have prevented traditional cooperative businesses from becoming pervasive: access to capital and complexity of governance. With the issuance of a token, cryptonetworks can benefit from market specula... See more

Crypto founders have a unique challenge in front of them. In addition to building a product that people want, they also need to consider how that product can successfully run in a decentralized manner — that is, as a protocol owned and operated by a community of users. This is a difficult challenge because much of what it takes to build a suc

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To create stronger community ownership, web 3.0 networks should move away from resourcing startup capital from centralized, opaque, and hierarchical VCs

Crypto networks and DAOs often use the concept of the “ownership economy,” an idea first articulated by venture capitalist Jesse Walden, as a kind of guiding philosophical infrastructure.

For networks that aim to be community owned, there should be some form of codetermination at the outset, allowing community proxies or representatives to be involved in treasury-related decisions -- particularly around token allocation.