Against buy-and-burn

a16z crypto's policy leadership, through Head of Policy & General Counsel Miles Jennings, has articulated a strategic pivot in how the industry should structure blockchain network governance. Jennings contends that the foundation model—adopted in crypto's early years as a theoretically optimal vehicle for promoting decentralization and neutral stewardship of network resources—has become an operational liability. While foundations were originally intended to hold tokens, support ecosystem development, and maintain credible neutrality without direct commercial interests, Jennings argues they now create regulatory friction, slow capital deployment, and impede the industry's ability to scale competitively.

The core thesis centers on structural misalignment. Foundations operate under nonprofit constraints that limit responsiveness to market forces and restrict capital allocation efficiency. In contrast, developer-led company structures enable faster decision-making, more efficient talent recruitment, and direct accountability to stakeholders. Jennings emphasizes that an industry seeking to challenge incumbent financial and technology infrastructure cannot rely on "altruism, charitable funding, or vague mandates"—instead, it must scale through aligned incentives and commercial discipline. The emergence of new U.S. regulatory frameworks in Congress creates what Jennings characterizes as a rare window for the crypto industry to transition away from foundation governance without sacrificing credible decentralization or public benefit objectives.

Supporting evidence for this governance evolution appears in parallel market developments. Stablecoins have achieved measurable product-market fit, with transaction volumes reaching $1.82 trillion in March 2026—demonstrating sustained, organic adoption uncorrelated to speculative crypto market cycles. Stablecoins are now functioning as critical fintech infrastructure, enabling sub-penny cross-border transactions and serving as programmable rails for global payments. Major institutional adopters including Stripe and SpaceX have integrated stablecoin functionality, validating the sector's maturation toward real economic utility rather than speculative asset dynamics.

The broader strategic implication suggests that crypto infrastructure governance is evolving toward models that prioritize execution velocity and commercial accountability over theoretical neutrality constructs. This shift aligns with institutional investor expectations for venture-backed blockchain projects: clear capital allocation discipline, performance-driven leadership, and regulatory compliance mechanisms embedded in corporate structure rather than nonprofit governance.