This is how Web3 will be Regulated:
I got massively triggered yesterday when I came across an article titled:
a16z to Lobby Policymakers On Crypto, Web3 Regulation
Why is this triggering?
Because it just constantly reinforces the fact that even the millionaires and billionaires involved in crypto don't understand what's going on here.
What is a16z?
Venture capital firm Andreessen Horowitz.
They have a lot of stake in Maker last I checked, so they have a big vote when it comes to MakerDAO governance. MakerDAO is the governing body of creating DAI using crypto collateral on Ethereum. This is likely a big reason why USDC was permitted to be used as collateral for minting DAI (a huge mistake because USDC is centralized and is regulated by bankers)
In any case, a16z (just noticed their are 16 letters between the a and the z... nerds) is a venture capital fund with a lot of stake in crypto, and they are going to give the government tips on how to regulate WEB3.
The problem with this?
Web3 is essentially defined by self-regulation. A16A clearly sees themselves of part of this equation. They are not. What is actually going on here is WEB2 pretending to be WEB3 and asking for regulatory clarity from the government because it's obviously centralized tech. Decentralized tech can't be regulated.
Let's looks at some quotes, shall we? (don't read these)
Andreessen Horowitz (a16z) plans to meet with leaders in Washington to lay out its vision for how the U.S. should regulate crypto and the next iteration of the Internet, popularly known as Web3.
Nothing statement
The firm believes that U.S regulators and policymakers should take advantage of the tools Web3 provides to build an Internet that is better at “unlocking opportunity, securing data, and solving critical challenges for society.”
Nothing statement
The firm defines Web3 as a suite of technologies that “encompasses digital assets, decentralized finance, blockchains, tokens, and DAOs,” and believes realizing its potential depends on smart policy.
Nothing statement
In the agenda released Wednesday, a16z suggests Web3 technologies can restore trust in institutions and expand access to opportunity but require a forward-thinking approach from policy leaders.
Nothing statement
“Good regulation establishes a framework for how innovation can benefit society while managing the real risks that might otherwise harm consumers. It’s time to define that vision. It’s time to build a better Internet.”
Nothing statement
“There are likely few areas that will be more consequential in determining the long-term success of a country in the 21st century than the quality of its digital infrastructure. And in the United States right now, we’re not only losing this race, but it’s unclear that many of our policymakers even recognize that there’s a competition underway.”
Nothing statement
Over the last few years, Andreessen Horowitz has positioned itself at the forefront of the digital assets revolution, investing millions into projects that have become household names, including the play-to-earn game Axie Infinity, the NFT marketplace OpenSea, and the blockchain gaming development studio Dapper Labs. The firm has also expanded its crypto-focused team, hired ex-CFTC officer Brian Quintenz as an advisory partner, and poached two key employees from Facebook’s Novi wallet project.
"This is why you should listen to us."
Another nothing statement.
Notice what isn't talked about?
Anything related to how they are going to "regulate Web3". Seriously, such morons. It's like listening to a filibuster on the Senate floor wasting hours of everyone's time talking about nothing. That is exactly what it is: a complete waste of time blowing hot air running in circles.
On a certain level I have to wonder if these corporate vipers know exactly what they are doing and are simply stalling the government long enough to the point where it doesn't matter anymore. Corporate interest will just keep shining government on until real decentralization takes over.
Unfortunately in my heart I know this is not the case. Venture Capital firms could never understand what's going on here, and they only see this entire movement as a money making ploy who's purpose is to go x1000 in the biggest score of their lives. Their only interest in regulatory clarity is to shore up their defenses and make sure their own money is protected. They couldn't care less about "customer protections" or "paying taxes". They are corporate; this is 100% about the money. THEIR MONEY!
Conclusion
This is how Web3 will be Regulated: It won't.
Regulation is about control, and the communities themselves control the DAOs. The smart-contracts are unbreakable and regulate themselves. The people are in control of their own governance and that thought obviously terrifies the regulators and politicians. Get over it dinosaurs; you're done, son. Keep filibustering while the rest of us build. See what happens.
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This is exactly why they want centralized regulators, everyone is jumping onboard for their piece of the pie.
Wait and see what the next five years brings to the fore, we live in interesting times!
@tipu curate
Upvoted 👌 (Mana: 36/96) Liquid rewards.
They can't. The ones talking this type of shit don't actually understand decentralized blockchains and WEB 3.0 or don't really care about them. The sad truth is that most of the crypto people, 90% of the crypto involved, don't give a damn about the tech they're talking about, all they care about is their portfolios and dollar valuations. Otherwise plenty of them would be on Hive already.
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Couldn't agree more, I always wonder about those people, like how do they choose their investments, I personally don't have experience trading or charting t.a. so I try to research the projects I invest in and in some cases try out the product, have no clue how do those people do...
What I find entertaining about this and why it doesn't trigger me, is their lack of understanding of the space and the difficulties they will have trying to define and enforce any regulation. :) Eats popcorn.
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I would not bet on them to stay clean while hunting down crypto influencers.
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Sorry I got lost here. Can you explain better please?
And secondly, why do people always feel the urge to regulate things actually? Most they always want to be in control? Let’s continuing standing firmly to our decentralized ground and don’t allow these people make us compromise.
Thanks for asking I knew it wasn't clear.
I always wondered why Andreessen Horowitz is called A16Z.
Andreessen Horowitz starts with an 'A' and ends with a 'Z' and there are 16 letters in between:
n-d-r-e-e-s-s-e-n H-o-r-o-w-i-t (16)
A16Z
Very weird abbreviation.
Wow!!! You are a genius
Maybe I shall start a co and name it V16S. Or O5A.
I need some cool name too.
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This thing is used a lot in web development.
We have a11y for accessibility, i18n for internationalization and those I don't know about.
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You know they will keep trying though. Simply because the way it has always been done and due to them not understanding. Also not wanting to try and understand. I wonder if they really think they are on the cutting edge here or if they are just oblivious.
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What is not mentioned is how cryptocurrency eliminates the need for Venture Capital firms. Companies like that are going to be obsolete when projects can simply spin up a token among their community members and get crypto rolling in in a peer-to-peer manner.
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Yes this is the most pertinent thing to remember.
There's no need for venture capital when communities can fund themselves.
That doesn't mean that they can't profit from smart investments into crypto projects. Behind a decentralized Data-Layer to ensure censorship resistance can be a second somewhat decentralized layer full of utility and then followed by a fast and agile managed & centralized single-purpose venture. That's basically the Richard Heart approach. Not really safe and sound, but can work brilliantly as well.
EDIT: There's the DAO and there's a venture capital provider and there's your own money and crypto. To me, they serve different purposes and none of them needs to be exclusive.
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Yes, venture capitalists CAN invest in crypto. But the point is they are not NEEDED to invest in crypto projects. That is the big change in the equation: previously venture capital (rich people) got to pick who got funding and also had an unfair advantage when it came to setting investment terms.
The real world is a place where I live and things happen. Venture Capital created Elon Musk and all his companies as well, just as an example since I know about bio. I see different models and use-cases for different types of financial support. Also, a place where venture capital with networking and consulting has proven itself. DAOs are great and work wonders, but there's no SpaceX, Starlink or Tesla founded with it. Big ventures sometimes need massive amounts of liquidity and trust, which can be true for the crypto space as well. We'll see, we'll see, re-imagining these things is sure beautiful, but then it never happens exactly as planned, does it?
You're absolutely right. To think that VC's won't be needed or be around because "crypto is different" is silly. "we can fund ourselves" is an interesting cry...the communities rarely build up enough money to match a VC in any form. VC's have their place in the world. Are they in it for the money? yes...but so are all of us or we wouldn't be on a platform where the purpose is to earn for posting and curating...it's all business and business is good.
100% right, we should not envy the VC Players just because they come from a place of FIAT success. Invite them over and let's grow together.
This is just another case of attempted regulatory capture.
This is just what the imperialist model of capitalism does. It's baked into the cake so to speak.
Unfortunately for them humanity has reached one of those evolve or die moments.
We have chosen to evolve and they have chosen to die.
So long and thanks for the fish.
There's one big hook to regulate Web3 and that starts and ends with the capability to legally identify the account owners and TAX the living hell out of them.
I bet we'll see that attempt brought forward in... let's say 3-5 years? xE
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Regulate would IMO work the best over the money gateways.
You want to ban web3? Simple make exchanges illegal that trade that tokens.
But what about dexes? Hammer massive against every node.
Will it work out longterm?
Nope. Technologie find a way. But it will buy time for them.
I think something retarded can easy happen.
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It appears like the people are going to need to stay ahead of Web2.5 as there is going to be constant "regulation" attempts and projects that are regulated. The beauty is that there will always be a real decentralized alternative. Not everyone will know it and that is how government will attempt to stay relevant... web2.5.
Web2.5 is quite apt
the awkward transition phase when all the corporations realize they can't actually get to 3.0 without giving up 100% control to the communities.
The centralized organizations want to get more control...but I don't think it will work that well in Web3. Then again these VCs are probably the first ones to get hit by the government when regulations show up since it's an easy target.
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I'm surprised you were triggered. I actually expect more of this in the coming years as companies try to 'lead' the Web3 era. We have a lot more attempts in the future, and if anything, it would be hilarious to see it all fail miserably
It makes me rage that so many people are going to misinterpret what is going on here and get led astray because some VC billionaire told them some stupid bullshit.
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Lol
I agree with you and your sentiment...although I must point out...it's 100% about the money for us, too...our money... lol
They'll keep trying though.
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I'm doing research on Web3 and I'll finish here, your post really helped me understand a lot, and it allowed me to know where I have to continue researching and where not to, fond of your content.