Executive Summary

Web3 is at a critical inflection point. It is appropriate at this stage to assess how well the Web3 space has delivered in its promise to empower all people. After several years of market volatility and high-profile scams, Web3 is widely considered to be entering a stage of maturity, with growing institutional interest
in the United States and abroad. 

As a starting point, this report attempts to answer the question of empowerment in Web3 by considering access to opportunities to build in Web3. Greater participation in shaping the industry will ensure the creation of products and services that address the needs of a greater swathe of people. The failure to examine and take action on potential shortcomings now could mean that historical inequalities remain intact via policy and industry practices – particularly in the United States context, which is the focus of this report.
Understanding what actions can be taken to support underrepresented builders is essential to ensuring a stronger, more vibrant and dynamic Web3 ecosystem overall. Given that participation in innovation ecosystems often falls along unequal lines of racial representation, this report considers the experiences of Black and Latino builders in Web3. Historically, Black and Latino entrepreneurs face higher barriers to accessing capital and social networks that can support their growth; conditions that support access to entrepreneurial opportunities for Black and Latino support access for all builders to succeed.

The goal of this research is to document and contextualize:

• The significant value created by underrepresented builders in Web3, shaping access to innovative products that serve the needs of a diverse array of people and communities despite historical gaps in access to capital and networks required to succeed.

• The risks that a lack of regulatory clarity could pose to creating a more inclusive innovation ecosystem in Web3, by putting additional pressure on participation by builders and founders from communities with less access to connections and resources.

• The novel qualities of the Web3 ecosystem and blockchain technology that foster greater opportunity for builders, increasing access to resources for all builders in the space and establishing new cultural norms.

• A path forward for shaping a Web3 ecosystem that is more accessible and empowering to all.

Key Insights

1. Underrepresented builders are advancing blockchain innovation in the United States – but face access challenges comparable to those in legacy industries. Historically underrepresented builders are at the forefront of key growth areas in Web3, reflecting a broader range of experiences and market opportunities. However, Web3 is not immune to structural shortcomings of access to capital and social networks that also impact other innovation ecosystems.

2. Existing structural challenges faced by underrepresented builders in Web3 are dramatically compounded by a lack of regulatory clarity. In any industry, the requirement to conduct business in a compliant manner necessitates resources. In Web3, however, a lack of regulatory clarity is creating outsized harm for builders who have historically lacked access to the capital and innovation networks required for entrepreneurial success.

3. Despite challenges, inherent Web3 strengths illustrate a path forward for a more equitable industry ecosystem. Core technical qualities and principles in Web3 – including cultural values of public good and open source – can begin to address structural parameters of unequal access to opportunity. Novel approaches to organizing and allocating capital and an emphasis on community building are providing all builders more democratic opportunities to build in the space.

4. Action is urgently needed to preclude the same poor outcomes in Web3 as in legacy tech and financial ecosystems. Industry and policy actions that improve access to opportunity for a more diverse range of builders in Web3 are good for US innovation and consumers overall. Thoughtful and coordinated policy and industry practices can strengthen domestic innovation, prevent leakage of capital and talent offshore, and support more inclusive participation among those shaping Web3. 

Access the full report here.