Solana Labs, the team behind the prominent blockchain network Solana, has initiated a corporate reorganization in a move aimed at reinforcing the decentralization of the ecosystem. The shift involves around 45 employees transitioning to a new entity called Anza, seeking to dispel claims of centralization in the crypto industry.
The restructuring is occurring amid heightened scrutiny from regulators and the crypto community following a series of controversies, including the November 2022 bankruptcy of FTX, a major Solana supporter, and allegations by the Securities and Exchange Commission (SEC) that SOL, Solana’s native token, is an unregistered security. The move is seen as a strategic response to legal challenges and regulatory concerns.
Anza, named after a desert near Solana Beach in California, is intended to function as a standalone business. Approximately half of Solana Labs’ 100-member staff has migrated to Anza, aiming to contribute to the decentralization of Solana’s ecosystem, enhance blockchain infrastructure, and develop additional applications and products.
The legal reshuffling comes after over a year of regulatory scrutiny and controversies that impacted SOL token value. The SEC’s claims about SOL being an unregistered security and ongoing litigation, including lawsuits from Coinbase, Binance, and investor Mark Young, prompted the move, according to reports.
Anza Technologies, Inc., the newly established entity, received funding from the Solana Foundation as a grant. While Anza is described as an “employee-owned, for-profit” business, specific details about its structure and grant size remain undisclosed. Solana Labs’ co-founders Anatoly Yakovenko and Raj Gokal reportedly have no stake in Anza, and Solana Labs owns 13% of the new entity.
Solana’s ongoing struggle to establish a clear narrative around decentralization casts a looming shadow over its public perception within the crypto community. While the blockchain has made significant strides, the persistent debate regarding its true decentralization has led to skepticism among users and industry observers. The recent corporate shuffle, with the creation of Anza as a for-profit entity separate from the Solana Foundation, adds another layer of complexity.
The transition of key Solana Labs employees to Anza, coupled with the new entity’s for-profit status, could trigger mixed reactions among current stakeholders. While some may see it as a positive step towards decentralization, others may express concerns about potential power shifts and the influence of a for-profit entity over the Solana ecosystem. It remains to be seen how the Solana community, including developers, validators, and token holders, will respond to Anza becoming a central hub for business and development. Clear communication and transparency will be crucial to maintaining trust and confidence among the diverse stakeholders.
The emergence of Anza as a primary center for business and decentralized application development on Solana could have ripple effects on institutional investors’ perception and, subsequently, on regulatory scrutiny. Institutional investors seeking to participate in Solana through potential ETFs may closely monitor the transition and evaluate the implications for governance and decentralization. If Anza becomes the focal point for Solana’s ecosystem, institutional investors might scrutinize its structure, governance model, and influence over decision-making. The SEC, which has already raised concerns about the status of SOL as an unregistered security, may view this shift in the ecosystem with heightened scrutiny, potentially impacting the regulatory outlook for Solana and its associated tokens.
Digital Assets Desk