CTF Written Submission

The Normative Theory of Web3 Commercial Integrity

July 8, 2025
  • The paper introduces a normative theory centered on five interdependent principles: enforcement, trust, duty segregation, governance, and adaptability, which are collectively necessary to uphold investor protection, maintain efficient and orderly markets, and ensure transparent capital formation.
  • It emphasizes the importance of atomic on-chain rule enforcement, where all compliance rules are enforced within each transaction context to prevent execution-path-dependent violations and regulatory arbitrage.
  • The paper highlights the need for on-chain segregation of duties, ensuring that roles such as protocol developers, auditors, and compliance functions have distinct, verifiable identities to prevent governance failures and maintain system-wide accountability.

Last Reviewed or Updated: July 8, 2025