The Web3 Financial De-Revolution: Mapping the Impact of Centralization on Exchanges and Decentralization as a Survival Mechanism

Abstract

A growing body of research suggests that decentralization is the next step in organizational evolution. However, models on how Web3 organizations live, survive, and die remain overly simplified. We develop a theoretical framework for understanding the survival and failure of Web3 organizations through the lens of institutional theory. We argue that isomorphism encourages Web3 entities to become more centralized and that the organizational hybridity generated from centralization decreases the survival rates of Web3 organizations.