a16z Crypto: If Web3 systems eliminate information asymmetry and reliance on management, securities laws will not apply

a16z Crypto has published an article titled "3 ways to organize decentralization in your startup," which points out that the three main frameworks for decentralization include:

1. Technical decentralization, where blockchain and smart contract protocols create the ability for a trustless and autonomous ecosystem. The basic obstacles to achieving technical decentralization depend on the type of protocol being developed.

2. Economic decentralization, where if one person accumulates too much value or can control the network by manipulating token prices, it can endanger the security and practicality of the entire system.

3. Legal decentralization, where decentralization can eliminate some of the risks associated with asset transactions.

Regarding how to handle digital assets in Web3, the article points out that if the Web3 system can eliminate significant information asymmetry and reliance on management work, the system can be considered sufficiently decentralized to the point where securities law is no longer applicable. (Of course, when it comes to legal decentralization, founders often feel confused and the rules are not yet clear, as the US Securities and Exchange Commission has not yet formulated these rules in a very clear manner.)