Cooperatives: An Ownership Model for Digital Networks

Web3 builders and investors should consider adding cooperatives to their ownership structures, according to the article, which argues this could boost participation and reduce regulatory risk while giving users more control of the digital networks they use. The article says cooperatives are common in credit unions, rural utilities, insurance companies and agricultural producers. It also states that the SEC has consistently declined to classify cooperative memberships as securities, which would let cooperatives distribute ownership to users quickly while offering protections to members. A white paper from Orrick, KPMG and Upside Cooperative explores whether this structure could help revitalize blockchain.