Factors of decentralization of web3 protocols: Tools for planning greater dec...

This article proposes a more standardized understanding of decentralization for web3 protocols, dividing it into technical, economic, and legal types, each assessed through factors listed in two tables. It argues that decentralization limits gatekeeping power, lets web3 systems function like public infrastructure, and can reduce regulatory risk. Technical decentralization is described as challenging for blockchains but achievable relatively quickly for smart contract protocols by making them immutable. The article also says legal decentralization may negate the need to apply U.S. securities laws to a token once a system eliminates significant information asymmetries and reliance on the managerial efforts of others.