eddy
7mo
Why do we even have foundations in crypto? Do we really need them going forward? @milesjennings explains why we had them, and why we may not need them any longer.
very interesting, strangely I never thought about this much, will dive into the article, thanks for sharing!
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ref:
The end of crypto's foundation era is here.
New policy (CLARITY Act), emerging structures (DUNA), and smarter tooling (BORGs) enable better systems — better incentives, accountability, and decentralization.
My new post on why it’s time to move on from foundation structures: https://a16zcrypto.com/post...
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Usually legally required by the IRS due to obligations to pass purposes funds to an organization under a similar mission in dissolution events.
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Depends on what the goal is for the crypto project. Are you working for the public good, or trying to max extract from your community 🤷
Seriously though, the friction that foundations cause is exactly the reason why people set them up. It's a feature, and if it's not a feature you're looking for, then yeah, don't do it.
Tax and regulatory exploits mostly, especially when it comes to schemes where you apply for money on the basis of distributing money for your foundation’s purpose. (eg, why you see a lot of microgrants based on revenue with these.) It’s a way to for-profit without being able to get donations under some of the safeguards of 501c4 treatment in the US.
501c3 is better. Much tighter belt and more virtue focused like a lot of web2 open source consider.
NLA but work professionally in nonprofit space in law/compliance/board/leadership.
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