The Normative Theory of Web3 Commercial Integrity

Abstract

The promise of Web3's decentralized, transparent, and user-owned systems offers transformative potential for global commerce. However, Web3 remains largely inaccessible or intentionally avoided due to user experience friction and persistent risk perceptions. Highly publicized failures over the years point to a fundamental weakness in achieving durable trust required for widespread adoption. This paper introduces a normative theory centered on five interdependent principles, spanning enforcement, trust, duty segregation, governance, and adaptability. Together, they define falsifiable conditions for integrity-by-design Web3 commercial infrastructure. These principles are collectively necessary, though not sufficient, to uphold investor protection, maintain efficient and orderly markets, and ensure transparent capital formation. This framework supports regulators, builders, investors, and institutions with a methodical approach for distinguishing legitimate infrastructure innovations from sophisticated regulatory arbitrage. As major infrastructure decisions accumulate daily, path dependencies continue to entrench brittle architectures. This work aims to chart a socio-technical path to achieving sustainable commercial integrity, thereby broadening access to trustworthy, extensible systems for long-term growth in Web3 commerce.