😱 4 mistakes web3 founders make—and how to avoid them

And key lessons from the CTO of a16z Crypto

The entire Chain Reaction team wishes you an amazing 2025 !

Today's Agenda...

• Lessons from a Web3 founder : how compliance, smart blockchain use, and a strong team drive lasting success.🧠✨
• Eddy Lazzarin, CTO of a16z Crypto, shares actionable insights on Web3 design, from tokens to decentralization 🔑🌐

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Building the foundations for success: entrepreneurial lessons from a web3 CEO

During his recent appearance on Behind The Chain podcast, Théo Poisson, co-founder & CEO of Objectify, shared insights from his entrepreneurial journey. These lessons highlight the value of strategic planning, compliance and teamwork.

Here are Théo’s key takeaways for aspiring Web3 founders:

1. Compliance first, code later

“Regulation may feel counterintuitive in web3, where innovation often outpaces legislation,” Théo explained. But understanding the legal landscape is non-negotiable.

For Objectify, compliance was a top priority:

• The first six months were dedicated solely to legal groundwork, working closely with lawyers to design a robust framework for tokenization.
• This included defining how to represent physical ownership through NFTs.

By solidifying these foundations, Objectify not only avoided potential pitfalls but also demonstrated credibility to investors, grant providers and partners.

2. Blockchain isn’t always the answer

A critical question every Web3 founder must ask: Does blockchain truly add value to this use case?

“Sometimes, a simple database can do the job just as well—or even better,” Théo pointed out. He emphasized:

• Avoid overusing blockchain technology just because it’s trendy.
• Focus on integrating blockchain where it genuinely enhances the solution.

This disciplined approach ensures projects bring meaningful innovation rather than chasing fleeting hype.

3. Surround yourself with the right people

Théo’s advice to founders is simple yet profound: “Find talents who complement your skills and who you trust.”

At Objectify, Théo has built a multidisciplinary team with:

• A strong sales lead.
• A design expert.
• A top-notch CTO.

The synergy within this team has been instrumental in driving the project forward. Théo’s mantra? “Great things are built with great people.”

4. Think beyond the hype

Finally, Théo urged founders to contribute to the ecosystem by solving real problems, not just riding trends. “Ask yourself: Does this project truly move the web3 space forward ?”

The takeaway

Web3 entrepreneurship demands more than technical expertise; it requires foresight, adaptability, and a clear sense of purpose. Théo’s journey with Objectify is a compelling reminder that laying solid foundations—both legal and strategic—is the key to sustainable growth.

If you’re an aspiring Web3 founder, Théo’s message is clear:

• Do your homework on compliance.
• Use blockchain wisely.
• Build a dream team.
• And always aim to leave a lasting impact on the ecosystem.

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Key lessons for web3 builders from Eddy Lazzarin's Tokencraft talk

Eddy Lazzarin, Chief Technology Officer at a16z Crypto, is a leading voice in the Web3 space, with a background spanning roles at Netflix and Facebook. Known for his sharp insights into decentralized systems, Eddy brings years of experience advising top blockchain projects.

In his talk Eddy didn't just theorize about token design—he laid out actionable lessons backed by real-world examples and hard truths.

Link to the video

1. Design protocols, not just tokens

Tokens aren't a magic fix—they're tools embedded within a larger system. Eddy warned against treating token creation as a shortcut to success: "A token should be a byproduct of a well-designed protocol, not an end in itself."

He referenced early experiments like Steem, a blockchain-based social network that paid users in tokens for comments. The result? A flood of low-quality posts as the incentives were misaligned. Builders need to focus on verifying the quality of incentivized behaviors.

Takeaway: Align incentives with measurable outcomes that drive real network effects, not vanity metrics.

2. Incentives are powerful—use them wisely

Eddy highlighted Compound's yield farming as an example of a well-structured incentive model. Compound rewarded users for providing collateral, a measurable, verifiable action. This aligned perfectly with the protocol's goals.

On the flip side, poorly designed incentives can create chaos. Eddy recalled cases where protocols poured millions into incentives only to realize later that the metrics they boosted had no lasting value.

"Misaligned incentives can create the illusion of growth while undermining the system's integrity."

Takeaway: Always measure what you're incentivizing. Are you paying for genuine contributions or just noise?

3. Security is non-negotiable

Security isn't just about preventing hacks—it's about trust. Eddy used MakerDAO (now Sky) as an example, where governance token holders play a key role in managing collateral types and debt ceilings to maintain system stability.

In another example, Ethereum's proof-of-stake mechanism guarantees validators get paid through token issuance, ensuring long-term security.

Takeaway: Tokens must fund verifiable security work, whether at the infrastructure level or within application layers.

4. Progressive decentralization is the smart path

Eddy Lazzarin outlined a clear strategy: start centralized, find product-market fit, and then progressively decentralize. He dismissed the idea of launching fully decentralized protocols from day one as unrealistic.

He used Uniswap as an example, where the team began with centralized control before gradually ceding decision-making to token holders and the community.

Eddy warned against rushing into token launches: "If your token's price would drop to zero if you disappeared, you're not decentralized."

Takeaway: Build functionality first, decentralize gradually, and ensure long-term sustainability.

5. Avoid the governance token trap

Token-based voting is often touted as a strength, but Eddy was candid: "Voting is a last resort. It's slow, low-signal, and hard to motivate experts to participate."

Instead, he suggested more creative approaches—like specialized councils, weighted votes, or even random selection (sortition)—to improve governance outcomes.

Takeaway: Governance shouldn't rely solely on naive token-weighted voting. Explore smarter, nuanced governance models.

Final thought: build with purpose

Eddy Lazzarin closed with a fundamental question every Web3 builder should ask: "What is your protocol selling, and how does the token support that value?"

Tokens are powerful tools, but only when wielded with intent. Whether you're aligning incentives, funding security, or driving network effects, every decision should tie back to your protocol's core purpose.

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Disclaimer : The goal of this newsletter is to inform and produce content related to management in the world of Web3. It is not investment advice. Investments in crypto-assets and NFTs are risky and can result in the loss of your entire capital. Always conduct your own research and exercise caution.