a16z crypto Policy Head: The Crypto Industry Should Move Beyond the Era of Foundations and Shift to Corporate Structures

Foresight News reported that Miles Jennings, Head of Policy at a16z crypto, stated in a post that the foundation model is no longer suitable for the development of the crypto industry. He recommends shifting to ordinary Developer Companies to achieve better incentive alignment, growth, and influence.

He noted that foundations were originally a stopgap measure to address regulatory concerns, but have now become a source of friction. Foundations struggle to efficiently deploy capital, attract top talent, respond to market feedback, and are unable to engage in commercial activities. Founders do not need to abandon network development; company structures can achieve alignment through PBC (Public Benefit Companies), network revenue sharing, milestone vesting, contractual protection, and programmatic incentives. DUNA (Decentralized Unincorporated Nonprofit Association) and BORG (Cybernetic Organization) can enable DAOs to have legal entity capabilities and on-chain governance, eliminating the centralization drawbacks of foundations.