As a crypto analyst with 7 years in blockchain, I dissect how foundation models—once the 'gold standard' for decentralized governance—are now crumbling under internal conflicts and inefficiencies. Case studies from Arbitrum to Ethereum reveal systemic flaws in transparency and community alignment. Is it time to sunset this outdated structure?

Eleven years after Ethereum Foundation pioneered the non-profit governance model, crypto projects are questioning its viability. From Arbitrum's unauthorized fund transfers to Kujira's leveraged treasury disaster, foundations increasingly resemble bureaucratic relics rather than decentralized stewards. As a16z declares 'the end of the foundation era,' I analyze why this once-idealized structure now struggles with governance failures, misaligned incentives, and regulatory pressures. Can DAOs or corporate models fill the void? Let's follow the money.