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Blockworks 2025-04-29 17:04:37

Decentralization on a deadline

This is a segment from the 0xResearch newsletter. To read full editions, subscribe . Decentralization is on the clock. A new policy framework by the Decentralization Research Center cuts through the noise: Decentralization should be judged by control. As rollups like Scroll hit key milestones, the question is whether real trust minimization is really happening, or if it’s just theater. A new decentralization blueprint Forget the vague platitudes. No endless debates about “degrees” of decentralization. A new report out today from the Decentralization Research Center argues that decentralization should be judged by one thing only: control. Can any person or group unilaterally control the network? If yes, it’s centralized. If no, it’s decentralized. Simple. Actionable. This framing matters because, as the DRC points out, the next two years will shape whether blockchain tech fulfills its original promise, or just recreates Silicon Valley’s closed gardens onchain. Without clear regulatory incentives for real decentralization, the default path will be centralization: cheaper, easier, but more extractive. The report lays out seven “control principles” to lock in decentralization through law: Networks should be open-source, permissionless, autonomous, credibly neutral, noncustodial, economically independent and broadly distributed. The report may serve as a blueprint regulators could actually use — without crushing innovation. But the DRC’s smartest move might be what it doesn’t demand: purity at all costs. It explicitly carves out room for practical realities like “security councils” that can step in during emergencies. Take Arbitrum , for example. After the network’s early governance missteps , the DAO has has mixed results . One thing it’s done well is to provide for a decently large and transparently selected security council with 12 members. This structure doesn’t break decentralization, the DRC argues, if it’s properly constrained, disclosed and accountable. This carve-out matters because it signals that serious decentralization isn’t about eliminating all forms of human intervention but rather just limiting unchecked control. Autonomy plus resilience, not code worship. Rollups are growing up Last week, Scroll became the latest Ethereum layer-2 rollup — and the first using zk/validity proofs — to achieve “Stage 1” status on L2BEAT . Scroll’s Euclid upgrade included two new mechanisms for sequencer accountability: Enforced transaction inclusion Permissionless batch submission These two core liveness and censorship resistance protections are what filled the pie slice to reach Stage 1. Add in the recent move to echo Arbitrum’s 9-of-12 security council multisig (from Scroll Foundation and community members), and Scroll has clearly invested in stronger trust minimization. But it may be short-lived. Both Scroll and OP Mainnet are at risk of downgrade in 90 days unless key guarantees around an exit window to Ethereum mainnet are put in place. Source: L2BEAT Per L2BEAT: “Compromising ≥75% of the Security Council should be the only way (other than bugs) for a rollup to indefinitely block an L2→L1 message or push an invalid L2→L1 message.” L2BEAT wants to see users’ exit window to be functional and credibly ungoverned (i.e., not overrideable by a core team with instant upgrade authority). Arbitrum ensures a 10-day exit period, so remains qualified. The DRC’s work ties into real policy momentum, including elements from last year’s FIT21 Act and ongoing SEC safe harbor discussions. If adopted more widely, the DRC framework could tackle one of crypto’s biggest regulatory bottlenecks: separating real decentralized infrastructure projects from those that slap a “DAO” label on centralized tech stacks. It gives both builders and policymakers a shared language — one rooted in control dynamics, not vibes. If crypto is going to survive as something more than Wall Street with a dark mode, serious decentralization tests should be fought for — not just in code, but in law. Get the news in your inbox. Explore Blockworks newsletters: Blockworks Daily : Unpacking crypto and the markets. Empire : Crypto news and analysis to start your day. Forward Guidance : The intersection of crypto, macro and policy. 0xResearch : Alpha directly in your inbox. Lightspeed : All things Solana. The Drop : Apps, games, memes and more. Supply Shock : Bitcoin, bitcoin, bitcoin.

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