Miles Jennings Criticizes Crypto Foundation Model at a16z

2 mins mins

Key Points:

Miles Jennings challenges crypto foundation model at a16z, suggesting alternatives.
Highlights inefficiencies and centralization risks in current models.
New frameworks proposed for flexible, responsive governance.

Miles Jennings, head of crypto policy at a16z, criticized the foundation model used by Ethereum and Solana on June 2, 2025, suggesting it impedes industry growth.

The existing foundation model limits agility and growth, prompting industry leaders to consider new governance structures that enhance accountability and responsiveness.

Jennings Proposes Governance Model Overhaul for Efficiency

Miles Jennings’ blog post on June 2 underscores four flaws in the foundation models of blockchain projects like Ethereum and Solana. Jennings highlights issues of market accountability, legal constraints, operational inefficiencies, and centralization. Martin de Rijke from Maple Finance echoed Jennings’ sentiments, noting corporate operations’ adaptability.

The immediate implications include the exploration of new governance models that better align with evolving market needs. Jennings suggests alternatives like decentralized nonprofit associations (DUNA) and cyborg organization governance. These proposals aim to enhance resource allocation and responsiveness, arguably benefiting the U.S. regulatory climate.

“Any founder who has launched a crypto network will tell you: nothing holds you back more than a foundation. The friction brought by foundations far outweighs their added value of decentralization.” — Miles Jennings, Head of Policy, a16z crypto

Market reactions so far are mixed, with analysts suggesting potential changes in how crypto projects are structured. However, immediate market or on-chain impacts on tokens like ETH, SOL, or UNI have not been recorded. Community discourse is expected to explore these ideas further, possibly influencing future governance trends.

Ethereum Price and Governance Change Insights

Did you know? The Uniswap Foundation is often cited as a rare success in avoiding pitfalls of typical foundation models, potentially setting a precedent for future decentralized governance frameworks.

Ethereum (ETH) is currently priced at $2,609.76, with a market cap of 315,056,344,047. Recent trading volume of 15,913,660,661 reflects a 3.16% change. Over the past 30 days, ETH’s value increased by 45.43%, according to CoinMarketCap.

ethereum-daily-chart-393 — Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 10:24 UTC on June 5, 2025. *Source: CoinMarketCap*

Insights from the Coincu research team reveal potential outcomes of the proposed governance changes. Financially, more adaptable structures could attract broader institutional interest. Regulatorily, improved legal clarity in the U.S. enhances project viability, fostering innovation aligned with technological advancements.