Challenges With Regulations

Ever wondered!

How will the current surge in regulations affect the industry’s quest for genuine decentralization?

Positive or Negative?


Hard question!

Depends on the regulation, and choices made.

Regulation is needed to move forward, the problem is that people making laws live in other worlds so the regulations never match the real needs.

Regulation is indeed a big challenge and we can’t know in advance.

Also, one other problem is how this industry is going fast and how laws are slow.

I guess we’ll see in 2 years where the regulation brought benefits

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If we get it right … We willl definitely be heading the right direction .

For me I share this view that sound regulation is beneficial, as it provides a framework within which innovations can thrive while safeguarding users from scams, bad practices, and poor coding. Regulation can sometimes appear counterproductive to decentralization, but a well-structured regulatory framework has the potential to be highly useful. Regulations enacted as a DAO will indeed be amazing, more like let the people make and enforce the rules.


I hope so.
That’s why we have to try new models with DAOs :slight_smile:


This is generally how I feel, as well. There are obviously bad things that people can do to each other–fraud, scams, theft, misrepresentations, etc.–and these things inhibit markets/societies from working productively. To the extent that thoughtful regulations reduce the bad stuff, I’m all for them and they’ll help Web3 grow. The problem is when regulations are used for certain stakeholder capture (e.g. in our case you could imagine banks colluding with regulators to stifle crypto), when they’re crafted so poorly that they don’t reduce the bad things, and when they harm the good things from happening.

Regulators aren’t omniscient and my guess is we’ll see plenty of perfectly fine regulations mixed in with some absolutely horrible ones, and lots in between. To @Manon 's point, the great thing about experimenting with DAOs is that we can self organize ahead of regulations, or within them when they do exist, to forge paths that make sense for these newly emergent communities.

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