The dilemma of the foundation model highlights the significant changes facing governance in encryption projects.

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The foundation model is facing a crisis, and the governance of encryption projects is at a turning point.

In the early days of the cryptocurrency world, the establishment of the Ethereum Foundation set a governance example for blockchain projects. As the industry developed, the foundation model once became a standard configuration for Layer 1 projects, symbolizing the ideals of decentralization, non-profit, and community service. However, this idealized structure is now facing real-world challenges.

Recently, the controversy surrounding the foundation model in the industry has been reignited. This structure, once regarded as the "gold standard of governance", is increasingly showing its limitations. The foundations of several well-known projects have exposed governance imbalance issues in actual operations, raising concerns about the sustainability of this model.

Countdown for Foundation Exit? The Rise of Corporate Systems and the Reconstruction of the Encryption Governance Paradigm

Some project foundations dispose of a large number of tokens without sufficient authorization, or suffer asset losses due to poor risk management. Even the well-established Ethereum Foundation has been criticized repeatedly for inefficiency and decision-making controversies. These events highlight the systemic flaws in foundations regarding power checks and balances, transparency, and risk management.

Countdown to the Foundation's Exit? The Rise of Corporate Structures and the Reconstruction of the Encryption Governance Paradigm

What is even more concerning is the power struggles between some foundations and their associated development teams, which seriously affect the normal development of the projects. For example, certain projects have delayed the achievement of key milestones due to internal disputes, and even triggered legal disputes. These cases indicate that the foundation model has obvious shortcomings in handling complex interest relations and decision-making mechanisms.

Countdown to Foundation Exit? The Rise of Corporate Structure and the Reconstruction of the Encryption Governance Paradigm

With the maturation of the industry, a new governance structure is emerging. It has been reported that some projects with higher market capitalization are considering dismantling the foundation structure and adopting a more flexible corporate model. Unlike foundations that emphasize non-profit and decentralization, corporate structures focus more on efficiency and growth, which seems to better align with current market demands.

In the face of changes in the regulatory environment and the rapid development of the industry, the governance models of encryption projects are at a turning point. The future direction of the foundation model, as well as how to improve operational efficiency while maintaining the concept of decentralization, has become the focus of industry attention. Regardless of the form ultimately adopted, enhancing governance transparency, strengthening risk management, and increasing community participation will be key factors for the success of future encryption projects.

Countdown to the foundation's exit? The rise of corporate systems and the reconstruction of the encryption governance paradigm

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StakeOrRegretvip
· 3h ago
I told you that Dao is not reliable.
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SelfMadeRuggeevip
· 3h ago
Again shifting the blame to the foundation
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HodlKumamonvip
· 3h ago
Data speaks, meow. Change is a necessary phase of rebirth~
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LightningPacketLossvip
· 3h ago
Hehe, it might turn out to be a big show again.
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FloorPriceWatchervip
· 3h ago
Goodness, how long have you been playing in the crypto world?
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HashBardvip
· 3h ago
same old story... decentralization dies in darkness fr
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