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Web 3.0

Web 3.0
By Keith Teare • Issue #287 • View online
This week we focus on Web 3.0 news. DAOs, Creator Coins, Square becomes Block, David Marcus leaves Meta, and Mysten Labs raises a $36m first round. Nothing happening here ;-)

Web 3.0 may or may not be real. It could be, like interactive TV in the 1990s, a highly funded bad idea. Or it might be, like the Beatles Get Back sessions, the place where the next thing is made and built one step at a time.
Web 3.0 describes a lot of different things and at the core is the idea of software replacing people and institutions as the essential glue between us all. An extreme example of that is a Distributed Autonomous Organization (a DAO). The promise is that a DAO is able to perform tasks, according to transparent rules, with no need for human decision making. Tomio Geron from Protocol leads the curated articles this week because he asks the ultimate question - can a DAO replace a corporate entity, thus ending centuries of corporate structure development. He goes through a list:
But can DAOs fund startups, replace crowdfunding campaigns or take the place of the trusty LLC? Advocates say that emerging tests of the model show it could bring more transparency and inclusiveness to businesses.
He also asks:
DAOs could be another way to form LLCs, but can they really replace companies? Crypto-friendly Wyoming passed a law in July allowing people to create an LLC with a DAO that has an Ethereum address. If a conflict arises in a DAO, a judge in Wyoming could rule on a dispute. But this wouldn’t work if one of the parties is outside of Wyoming, Jackson said: That aspect of the law hasn’t been tested.
It’s not either/or. Some DAOs need to register as LLCs and have done so. The LAO is a Delaware-registered LLC that is “primarily administered via an online application (a ‘DApp’) and related smart contracts,” its website says. In other words, the DAO structure provides coordination and voting, but sits on top of the LLC structurally.
However, Geron’s conclusion is less than wholehearted:
That may mean that for some time, the DAO won’t replace the LLC: Instead, it will ride on top of that structure’s established protections. Expect a growth industry in legal advice for starting your DAO LLC.
I am more optimistic that software will increasingly replace corporate structures and that value will shift from share ownership to token ownership. I agree it is a process, but taking a look at projects like LUNA and Terra UST and the anchor protocol it is already obvious that the underlying infrastructure for programmable money and effort are being built now.
Web 3.0 is already here and the early investors are funding it, joined this week by Sequoia Capital who announced its embracing of Web 3.0 by placing its first bets - in LayerZero Labs and also by turning its Youtube Investment Memo into an NFT.
In other news, The Information accused Apple of doing a $275 bn deal with China, but really it is just business as usual. Steve Case noted the growth of non-Silicon Valley seed-stage investing and Atomico released its State of Tech in Europe report. I was most intrigued by rumors that Andreessen and Horowitz are stepping back from day-to-day operations at A16Z and buying property in Las Vegas. I don’t know if I believe that…..but lets hope the IRS do, for their sake ;-)
More in this week’s video
Web 3.0
Web 3.0
Web 3.0 Tracker
People are talking about Web3. Is it the Internet of the future or just a buzzword? : NPR
DAOs are running crypto. Can they replace the corporation too?
Creator coins & the future of income
Jack Dorsey’s Square Is Now Block
WhatsApp Deploys Crypto Payments Via Chat In The U.S.
Facebook’s top crypto executive David Marcus is leaving the company – TechCrunch
ARM less?
What will happen to Arm now?
Apple and China
The Information: ‘Inside Tim Cook’s Secret $275 Billion Deal with Chinese Authorities’
A16Z - Founders Loose in the Saddle?
a16z Founders Ben Horowitz, Marc Andreessen Start to Step Back From VC Firm
YC and 1000 Startups?
Y Combinator = Growth
The Rise of the Rest
Venture capital-funded startups are moving away from Silicon Valley, AOL Co-founder explains - Yahoo Money
European Startups Are Booming
Pleo Picks Up $200M At A $4.7B Valuation To Build The Next Generation Of Business Expense Management
State of European Tech 2021 · State of European Tech 2021
Britain leads way in tech investment | Business | The Times
The state of European tech 2021: 21 things you should know - Sifted
Startup of the Week
Tweet of the Week
When building a portfolio of investments that can have non-linear outcomes, never sell early.

You may be right most of the time, but the one time you’re wrong will cost you most of the returns.
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That Was The Week is a editorialized and curated weekly look at developments in tech, startups and investing

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Keith Teare, Palo Alto, California