Venture capital formation for software cooperatives

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.

In order to balance out for profit motives with long term neutrality the following factors can be taken into consideration: (1) Capital need and ownership of a project, (2) Syndication and relative allocations, (3) Governance rights.