After the Foundation Era: Tokens, Policy, and Startup Structures

40 snips

Aug 22, 2025

Guest

Miles Jennings, head of policy at a16z crypto, Eddy Lazzarin, a16z crypto's CTO, and Jason Yanowitz, cofounder of Blockworks, dive into the evolving world of decentralized networks. They discuss the end of the foundation era and introduce concepts like DUNAs and BORGs. The trio explores the difference between network and company tokens, emphasizing their implications for investors and builders. They also touch on when protocols should activate revenue models, common pitfalls founders face, and the critical need for clear regulatory frameworks in the crypto landscape.

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ANECDOTE

Cayman Foundations Created Perverse Incentives

Many foundations moved IP and token issuance offshore and centralized control in a few professional directors.
That created extraction and opacity, and even lawyers left firms to sit on offshore boards for pay.

ANECDOTE

Decentralization Theater: Slack Rules Example

Teams enforced absurd separation like forbidding foundation and labs staff sharing Slack channels.
Eddie argues if two employees in the same Slack compromise decentralization, the design was never decentralized.

INSIGHT

Network Tokens Are About Marketplace Integration

Network tokens are defined by integration with a decentralized marketplace and value accrual from on-chain activity.
The L1/L2 split is less important than whether value accrues autonomously to token holders.

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with @eddylazzarin @milesjennings @JasonYanowitz

Welcome to web3 with a16z crypto. Today’s episode is on a super timely topic: How to design, govern, and grow decentralized networks in today’s changing policy landscape. It covers:

Why the “foundation era” of crypto is ending — and what comes next with DUNAs and BORGs
How U.S. policy shifts are creating real rules of the road
The difference between network tokens vs. company tokens (and why it matters for investors, builders, and other participants)
When protocols should flip the fee switch and start generating revenue
Common mistakes founders make when launching tokens and structuring projects

To unpack it all, you’ll hear from Miles Jennings, head of policy and general counsel at a16z crypto, and Eddy Lazzarin, a16z crypto’s CTO, in conversation with Jason Yanowitz, cofounder of Blockworks and host of the Empire podcast (where this conversation first aired) ... and which we’re excited to bring to you here.

Timestamps

0:00 Introduction

3:14 Regulatory Progress and Optimism in DC

9:34 The Problem with Offshore Foundations

13:58 The End of the Foundation Era

27:29 DUNAs and BORGs: New Legal Structures

38:42 Understanding Network Tokens

43:42 Network Tokens: Beyond L1 and L2

48:37 Company Tokens: Evolution and Challenges

51:09 The Legal Landscape of Token Offerings

1:04:25 Turning on the Fee Switch: When and Why

1:12:47 Balancing Portfolio Needs and Regulatory Clarity

1:15:36 Common Questions from Founders

1:20:17 Conclusion

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As always, none of the content should be taken as investment, business, legal, or tax advice. Please see a16z.com/disclosures for more important information, including a link to a list of our investments.

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