A new effort by the massive crypto investment company Andreessen Horowitz (commonly known as a16z) is worth keeping an eye on.
In a blog post published on Thursday, the company stated that it is "Open Sourcing Our Token Delegating Program," which would involve sharing resources developed to advocate more diverse decentralized crypto governance.
The cryptocurrency industry likes the concept of "decentralization," which implies that blockchain projects are governed by a wide community of token holders who are not beholden to any single entity.
Most crypto companies, on the other hand, remain heavily controlled due to small groups of founders and investors holding the bulk of the tokens.
These papers include legal agreements as well as a set of criteria developed by a16z to assess if a certain company or organization is a good candidate to earn a share of the voting tokens that determine whether a given blockchain's protocol should be changed.
It began by granting voting rights to a small number of businesses but has now expanded the list of recipients to include university blockchain clubs and non-profit organizations like Kiva and Mercy Corps.
A16z is growing the number of organizations to whom it grants voting privileges. The idea was prompted in part by the fact that certain entities with a big share of tokens chose to "do nothing and pretend they don't have the authority."
A16z's partner Jeff Amico stated that the move was driven by a desire to make things more transparent.
A16z claims that its delegates are really autonomous and have voted against the firm's recommendations on several occasions.
Based on a16z, the company has the authority to remove voting rights in exceptional instances. A16z is by far one of the largest companies in the globe.
While a16z is tremendously important in crypto owing to the scale of its investments and early bets on firms like Coinbase, the business has also raised feathers due to its dominance in the sector and penchant for generating attention.
Meanwhile, others may wonder if the company, which has links to almost every major cryptocurrency project, is best placed to carry the decentralization banner.
The world's largest token holder, A16z stated its intention to hand over the management of blockchain protocols to responsible third parties.
The company has a list of best practices as well as a scoring system that awards points based on competence, dedication, and lack of conflict.