Foundations
The term foundation in general is used to describe a distinct legal entity. The exact details depend on the jurisdiction in question, but here we take a general look at why foundations were popular with many ICOs.
In the early days, blockchain projects mostly created foundations to raise the capital needed to build the technology and make it open source and decentralized. The most famous is the Ethereum Foundation and more recently the Tezos Foundation, as mentioned earlier. This structure seemed to make sense because these international collaborators did not see themselves as a corporation. Also, a foundation seemed to have the right governance structure to keep the project alive through to completion and avoid any form of taxation, as foundations are not-for-profit entities and thus not taxable.
As a distinct legal entity, a foundation is generally established to reflect the wishes of the founder via an endowment of assets, which are managed by council members for a specific...
