DeFi Leaders Unite to Champion Ethereum's Ecosystem to Policymakers

Major players in the decentralized finance (DeFi) space have joined forces to establish the Ethereum Protocol Advocacy Alliance (EPAA). This new alliance aims to coordinate policy efforts and educate lawmakers about the Ethereum ecosystem, addressing what they perceive as an "outsized influence" of centralized crypto entities in policymaking.

Key Takeaways

A new alliance, the Ethereum Protocol Advocacy Alliance (EPAA), has been launched by prominent DeFi entities.
The EPAA's primary goal is to advocate for Ethereum and its decentralized infrastructure to policymakers.
The alliance seeks to counterbalance the lobbying power of centralized crypto firms.
EPAA members collectively manage over $100 billion in assets through open, non-custodial protocols.

The Formation of the EPAA

The Ethereum Protocol Advocacy Alliance was announced on Tuesday, bringing together key figures from the Ethereum ecosystem. Founding members include Aave Labs, Aragon, Curve, Lido Labs Foundation, Spark Foundation, The Graph Foundation, and the Uniswap Foundation. The EPAA highlighted the need for this group to ensure that the principles and technologies behind on-chain infrastructure are not misunderstood or overlooked in policy discussions.

Addressing Policy Imbalances

The EPAA stated that its members secure over $100 billion in assets through open, non-custodial protocols that operate without intermediaries. The alliance plans to leverage its collective technical and practical experience to advocate for on-chain solutions to regulatory challenges. The Ethereum Foundation has expressed its support for this community-led initiative.

Counterbalancing Lobbying Efforts

This move comes in the context of significant lobbying efforts from centralized crypto entities. For instance, the Fairshake Political Action Committee, backed by major players like a16z, Coinbase, and Ripple, amassed substantial funds to influence policy during the previous election cycle. The EPAA, with its prominent members, is positioned to exert considerable influence on policy initiatives.

EPAA's Engagement Strategy

The alliance has outlined a four-pronged approach to engaging with policymakers:

Contributing technical expertise.
Producing accessible resources to explain complex technical information.
Coordinating strategic engagement to broaden the reach of their messaging.
Identifying areas of common technical interest.

Ethereum's Continued Growth

The launch of the EPAA coincides with a period of significant development within the Ethereum ecosystem. Recent initiatives have focused on improving communication, branding, coordination, development, and institutional onboarding. The Ethereum Foundation has also revamped its grants program and launched a dedicated portal, "institutions.ethereum.org," to facilitate the integration of more institutions into the Ethereum network.

Sources

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