Farewell to the Crypto Foundation: Reconstructing a New Governance Mechanism for the Blockchain Industry

The Flaws of the Encryption Foundation and Alternative Solutions

The encryption foundation was once an important tool for promoting the development of the blockchain industry, but it has now become a major obstacle to development. With the proposal of a new regulatory framework by the U.S. Congress, the encryption industry has welcomed the opportunity for change: it can abandon the encryption foundation model and adopt a more clear and scalable mechanism to rebuild the ecosystem.

The encryption foundation model originated from the early founders' decentralized idealism, aiming to act as a neutral manager of network resources. However, over time, this model has exposed numerous issues:

  1. The incentive mechanism is not coordinated.
  2. Unable to achieve scalable growth
  3. Forming new centralized control

In comparison, the structure of conventional development companies can better support the long-term development of the network:

  • Efficient capital allocation
  • Provide more attractive talent incentives
  • Respond quickly to market forces

To address potential conflicts of interest, the following tools can be used:

  1. Public Welfare Company ( PBC ) Structure
  2. Network Revenue Sharing Mechanism
  3. Milestone Attribution Mechanism
  4. Contract Guarantee Clause
  5. Programmatic Incentive System

Two emerging implementation solutions are worth paying attention to:

  1. Decentralized Non-Profit Association ( DUNA ): Providing legal entity status for DAOs
  2. Control Theory Organization ( BORG ) Tool: Migrate governance functions to operate on-chain.

These new architectures and tools are capable of providing better incentive coordination, accountability, and operational efficiency while maintaining decentralization. They represent the future development direction of the encryption industry, helping the industry move away from dependence on encryption foundations and establish a more sustainable and scalable ecosystem.

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AirdropATMvip
· 1h ago
Tsk, it's starting to get competitive again.
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LongTermDreamervip
· 4h ago
Unbelievable. Three years ago, they were still promoting the foundation, and now they want to dismantle it. The market really never knows what the next three years will look like.
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OnchainFortuneTellervip
· 5h ago
I said this broken foundation was not going to work a long time ago.
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LightningPacketLossvip
· 5h ago
Better to be centralized than to pretend to be decentralized.
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ZKProofEnthusiastvip
· 5h ago
encryption is toxic, it hurts.
View OriginalReply0
OneBlockAtATimevip
· 5h ago
This is a closed-loop trap doll.
View OriginalReply0
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