According to Odaily, a16z Crypto has published an article outlining three main frameworks for implementing decentralization in startups. The first is technological decentralization, where blockchain and smart contract protocols create an autonomous ecosystem that doesn't require trust. The main obstacle to achieving technological decentralization depends on the type of protocol being developed.
The second framework is economic decentralization. This becomes necessary when one person accumulates too much value or can control the network by manipulating token prices, which could jeopardize the system's security and usability.
The third method is legal decentralization, which can eliminate some risks associated with asset transactions. The article also discusses how to handle digital assets in Web3. If a Web3 system can eliminate significant information asymmetry and dependence on management, it can be considered sufficiently decentralized to no longer require compliance with securities laws.
However, when it comes to legal decentralization, founders often find themselves confused due to the lack of clear rules, as the U.S. Securities and Exchange Commission has not yet established these rules in a very explicit manner.
