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The DAO model functioned as a regulatory shim - decentralization was often a defensive tactic against SEC scrutiny, but as the regulatory climate shifts, these complex structures are being exposed as inefficient for long-term value accrual.
“The structures that crypto teams were forced to build may now be working against the very communities they were meant to serve.”
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Token-to-equity conversions signal a crisis of the 'crypto-native' premium - if protocols like Across successfully retire tokens for equity, it challenges the fundamental thesis that tokens are the superior vehicle for capturing protocol cash flows.
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Dual governance structures create a valuation ceiling - managing the friction between community token holders and core team equity holders results in perverse incentives and 'governance bloat' that suppresses a project's true market value.
“The structures that crypto teams were forced to build may now be working against the very communities they were meant to serve.”