a16z crypto

Today, we’re excited to share the 2023 State of Crypto Report and introduce the State of Crypto Index. Our 2023 report aims to address the imbalance between the noise of fleeting price movements and the data that tracks the signals that matter, and the durable progress of web3 technology. Overall, the report reflects a healthier industry than market prices may indicate, and a steady cycle of development, product launches, and innovation. The State of Crypto Index is an interactive tool to track the health of the crypto industry from a technological, rather than financial, perspective. To offer a more accurate and nuanced measure of the state of crypto, the index represents the weighted average monthly growth of 14 industry metrics – from the number of verified smart contracts to the number of transacting wallets and more. In other words, the index displays, in a single chart, the rate of innovation and adoption of web3. The tool is also interactive, so you can tweak the parameters to form your own views. Report here: https://lnkd.in/gx5MCDrN One of the key insights that you’ll find from the report is that blockchains have more active users, and more ways to engage than ever before. We’re seeing more monthly active addresses – unique addresses sending on-chain transactions each month – than ever.  Last month we saw 15 million addresses, more than twice as many as two years ago when prices were still elevated. One explanation: there are increasingly more ways to engage with blockchains and web3 applications. From DeFi to web3 games – more than 700 of which launched last year – a variety of new applications create addresses for their users to interact with, without having to download or connect a wallet. Check out a few more of the takeaways from the report here: https://lnkd.in/gx5MCDrN Lastly, we encourage you to explore the State of Crypto index yourself. We made the tool interactive, allowing you to tweak the parameters and create different views of the industry. We plan to update the data on an ongoing basis so that it is as accurate as possible over time. If you uncover an interesting insight, please share your thoughts with us! State of Crypto Index: https://lnkd.in/gcuw_sh3

A recruiter should be among a founder's first 10 hires.This may seem counterintuitive — if founders are pressed for time and need the right technical talent right away, shouldn’t other hires take precedence? Far from it. Having worked and helped scale Airbnb (which I joined at 50 employees) and Coinbase (which I joined at 7), and having counseled countless other startups, I can attest to the fundamental importance of investing in recruiting talent at this early stage. Here’s why a recruiter should be one of your first hires (and how to hire them): https://lnkd.in/dK2rTSkN

"What is the right model for internet governance?" Andrew Hall, Robert Hackett, Noah Feldman 🎙

We're seeing more and more crypto startups stuck with predatory terms from early-stage deals. Don't let early-stage investors set you up for long-term failure and jeopardize future fundraising rounds. Here's what you should look out for: 1. Investor's Behaving Badly - Fixed Token Allocation Rights: Beware fixed, non-dilutable token interests. They limit flexibility and future growth, forcing founders to sacrifice builder incentives. Token rights should be proportional to equity and dilutable. 2. Investor's Behaving Badly - Short Lockups: Short lockups can be dangerous, enabling investors to sell early and disrupt project stability. Lockup schedules should be the same among investors and ensure long-term commitment from all stakeholders. 3. Investor's Behaving Badly - Blocking Rights: Unqualified approval rights over a token launch give investors hold up rights to negotiate for better economics. Founders should maintain control over launch decisions to avoid strategic misalignments. 4. Investor's Behaving Badly - Network Exploitation: Investors shouldn't compete with their portfolio companies. Unrestricted use of company tech by investors can undermine the project’s goals and should be prohibited. 5. Investor's Behaving Badly - Disregarding Regulatory Compliance: Investors ignoring portco regulatory compliance likely don't take their own compliance seriously either, which can put companies at risk. Prioritize partnerships with those that care about the law. For more, see here: https://lnkd.in/g_RPtYGS

Here’s a practical guide from Ish Verduzco on how to build your social media presence. https://lnkd.in/ggxKemjP

In this new episode, we not only break down the recent Compound “governance attack” -- including discussing whether that's the right label for it or not -- but also cover online vs offline governance attacks in general, possible solutions to such governance attacks in the specific, and more. with Andrew Hall, Eddy Lazzarin, Ross Shuel, Sonal Chokshi 🎙 Tune in: https://lnkd.in/gNYiTf9w

Maggie Hsu and I will be back in Singapore this year for TOKEN2049, Solana Breakpoint, and more with a16z crypto. Like or reply if you're heading to the Lion City.

Included in our latest newsletter edition: 🛠️💪 Your guide to tokens: How to design, launch, structure rights in term sheets, and more 🌍⚡ Spotlight: Where innovation happens 📰🪪 News you can use: digitizing the DMV 📝📄 Latest in research: reasoning about the risks of restaking 🔆🌐 Trend resource: decentralized energy 🗞: https://lnkd.in/gtYhksV3

Our team just released part 2 of the Token Playbook from earlier this year. It includes how to design & launch tokens, structure rights, and more. Check out the new resources here: https://lnkd.in/gbbbv6uD

In this special series of posts continuing our Token Launch Playbook, we cover token "do's and don'ts"; the ins and outs of tokens as part of overall compensation; a new cash flow model for web3 application tokens; and the art of tokencraft. We also share more on how to prepare for token launches, and how to structure deals involving token rights and restrictions — including how to avoid predatory term sheets. See also the first part of this series below, which covers what you need to know before you launch a token, as well as an operational readiness checklist from token creation to custody; rules for token launches and strategies for managing risk; and more. Check out all of the new resources here: https://lnkd.in/gfad9DED