I've worked in crypto for 12 years, talking to builders and founders weekly. A recurring issue is the lack of legal/regulatory clarity. This uncertainty keeps many top web2 devs from building onchain -- it’s just easier to stay in web2.

Here are the tough questions people are asking:

1. What defines a centralized vs. decentralized project?

2. Best jurisdiction to incorporate a crypto startup?

3. Does D&O insurance cover crypto startups? Other must-have policies?

4. How to minimize legal fees as a pre-revenue startup without cutting the wrong corners?

5. Key traits in a legal advisor for crypto?

6. Beyond securities risk, what legal pitfalls should founders watch?

7. Is a foundation required to launch a governance token?

8. What makes an ERC-20 or ERC-721 a security?

9. What makes someone a token issuer? Do all tokens have one?

10. What should I do?

We need risk-averse standards and answers to these questions to bring the world onchain.

First, no legal advice. Second, it depends. Now legalese aside, let’s dive into your questions 👇

1. What defines a centralized vs. decentralized project?

No one really knows. An important SEC official dropped the term “sufficiently decentralized” in a 2018 speech, and ever since, law firms have been using it to sell legal opinions to token issuers.

I do recommend reading this memo on the YFI token launch by a brilliant US lawyer. It dives deep into the concept of decentralization:

First, no legal advice. Second, it depends. Now legalese aside, let’s dive into your questions 👇

1. What defines a centralized vs. decentralized project?

No one really knows. An important SEC official dropped the term “sufficiently decentralized” in a 2018 speech, and ever since, law firms have been using it to sell legal opinions to token issuers.

I do recommend reading this memo on the YFI token launch by a brilliant US lawyer. It dives deep into the concept of decentralization:

https://metalex.substack.com/p/why-yfi-are-not-investment-contracts

haha the legal world is a maze! 🤯 thanks for sharing the memo link, gonna check it out. decentralization is like the wild west of crypto! 🚀

building skala.io, partner at buzko.legal