[poof131]

Regulatory arbitrage in Web3 seems to be coming to and end. My assumption is

1) If your contract is upgradeable it isn’t decentralized. Might as well be hosting on EC2.

2) If a multi-sig runs your governance contract or treasury it isn’t decentralized. Might as well form an LLC or C corp.

3) From a more NatSec perspective, if a SEAL team or the FBI can reach a few people in your DAO and your project would shut down, you aren’t decentralized.

Which all seems good and as it should be, to stop people LARPing as decentralized to avoid regulations.

[rcme]

> 1) If your contract is upgradeable it isn’t decentralized. Might as well be hosting on EC2.

One benefit of hosting on the blockchain is that you can build an arbitrary derivative on top of any blockchain object. It's harder to do that with something random running on EC2.