Decentralizing Trust in Web3: Lessons Learned for APAC DAO

In the fast-evolving world of Web3, the concept of decentralizing trust has always been at the heart of its mission. However, as highlighted in the article “Decentralizing Trust Harder Than Initially Thought,” it is essential for projects like APAC DAO to understand the complexities and challenges that come with achieving true decentralization. This blog post explores the key takeaways from the article and how APAC DAO can navigate these challenges to build a stronger, more resilient decentralized organization.

Understanding Token Types:

As highlighted in the article, there are three primary token types commonly used in Web3 projects: utility tokens, governance tokens, and security tokens. While utility tokens provide functionality on a specific blockchain network, governance tokens offer holders the ability to participate in the decision-making process. On the other hand, security tokens represent investor shareholdings in a project and can yield dividends.

For APAC DAO, it is crucial to carefully consider the token type that aligns with the organization’s goals and objectives. By understanding the differences and implications of each token type, APAC DAO can establish a clear framework for token issuance and utilization within its ecosystem.

The Challenges of Speculation and Greed:

The article emphasizes the impact of speculation and greed in the Web3 space. Initial Coin Offerings (ICOs) during the Ethereum network launch demonstrated the skewed incentives between projects and investors. While projects sought funds to realize their visions, investors were driven by the desire for maximum returns on their investments.

APAC DAO should be mindful of these challenges, ensuring that its token economics are designed to create a balance between investor interests and the long-term sustainability of the organization. By focusing on creating value through real-world assets and implementing a sound economic model, APAC DAO can mitigate the risks associated with speculation and foster a more stable and sustainable ecosystem.

Separating Utility and Investment:

Another crucial aspect highlighted in the article is the need to separate utility tokens from investment-centric assets. While utility tokens serve as a means of payment for services within a network, they should not be solely reliant on their speculative value. Instead, APAC DAO should consider accepting stablecoins or widely-used cryptocurrencies for its core services, to provide a clear separation between user-centric digital assets and investor-centric profitability.

By establishing this distinction, APAC DAO can ensure that its token economics are driven by real-world value and utility, rather than being solely dictated by token price volatility. This approach will enhance trust and attract users who genuinely value the services provided by APAC DAO.

Building a Strong Foundation:

To overcome the challenges faced in decentralizing trust, APAC DAO must focus on building a strong foundation. This includes establishing a framework to support security tokens, enabling proper regulation compliance, and generating real revenue streams. By doing so, APAC DAO can demonstrate a sustainable business model, attracting both investors and users who believe in the organization’s long-term vision.


Decentralizing trust in Web3 is undoubtedly a challenging endeavor, as highlighted in the thought-provoking article “Decentralizing Trust Harder Than Initially Thought.” However, by understanding the complexities and lessons learned, APAC DAO can navigate these challenges and emerge as a strong and trusted decentralized organization in the APAC region.

By carefully considering token types, addressing the issues of speculation and greed, separating utility and investment, and building a strong foundation, APAC DAO can pave the way for a more inclusive, transparent, and decentralized future. Let us embark on this journey together, as we shape the future of Web3 in the APAC region and beyond.

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