Crypto Governance Advisory MetaLeX Raises $2.75M

As a researcher with a background in law and a strong interest in the crypto space, I find Gabriel Shapiro’s MetaLeX project intriguing. The company’s recent successful seed funding round, led by Cyber Fund, at a $27.5 million valuation is a testament to the growing demand for solutions that help crypto projects navigate the complexities of decentralization and governance.

Advocates of cryptocurrencies once argued that “the code governs absolutely.” However, this concept was eventually challenged by courts and legal analysts. Nevertheless, significant financial opportunities remain in understanding the complex relationship between law and code in this realm.

One example is Gabriel Shapiro’s MetaLeX, a unique venture that combines legal services and technology expertise, aiming to navigate the complexities of crypto projects as they strive for “decentralization.” MetaLeX recently secured $2.75 million in seed funding headed by Cyber Fund. The company is now appraised at a valuation of $27.5 million, according to Shapiro.

As a crypto investor, I’ve noticed that decentralized projects differ significantly from their centralized counterparts in traditional businesses. Instead of maintaining a hierarchical structure where a few individuals control budgets and core operations, these projects aim for “decentralization.” This means giving token holders the power to make decisions, which can be costly, complex, and error-prone.

Shapiro’s specialized MetaLeX enters the scene, offering business-to-business solutions as a crypto software service provider. In an interview with CoinDesk, he explained that they are developing standardized processes using smart contracts for decentralized autonomous organizations (DAOs) to effectively manage themselves on the blockchain.

In simpler terms, this new concept is referred to as a “Cybernetic Organization” or “BORG” in MetaLeX language. Imagine it as a digital version of a corporation, governed by intelligent contracts embedded within its bylaws, as described in the project proposal.

“Shapiro pointed out that what sets them apart is their requirement for smart contract functionality in their procedures. Consequently, I propose labeling them as ‘cybernetic’ due to this characteristic.”

As a crypto investor, I would explain it this way: MetaLeX’s initial offering will be an operating system designed specifically for Decentralized Autonomous Organizations (DAOs). This system will introduce features to streamline and enhance their governance procedures. With these tools, DAOs will be able to manage grant approvals, implement emergency shutdowns, and execute venture investments on behalf of the organization, making their decision-making processes more efficient and effective.

As an analyst, I’ve noticed a significant surge in interest from crypto projects looking to join the MetaLeX OS waitlist on a daily basis, according to Shapiro’s recent statement. Among these applicants are two well-established projects within the industry. However, he was reluctant to disclose their identities beyond revealing that one is a layer-2 blockchain solution and the other is a traditional Decentralized Autonomous Organization (DAO) in the DeFi sector.

‘Fully BORGify’

“They both want to fully BORGify their operations,” he said.

In simpler terms, not all cryptocurrency initiatives can be transformed like BORG (assumedly a reference to a well-known concept). Projects that have already issued tokens and established Decentralized Autonomous Organizations (DAOs) for governance are more complex to handle compared to those that are still in the pre-token phase, according to Shapiro.

MetaLeX functions as an overarching label for two distinct entities: a Delaware corporation, which serves as the tech company, and a Texas limited liability partnership, acting as the law firm headed by Shapiro and Alex Golubitsky. Clients have the flexibility to engage with one or both of these organizations.

If MetaLeX develops into a legal protocol requiring management by its users in the future, Shapiro suggested, it may be granted its own token.

I believe it may take some time before we reach that stage, but I’m confident we’ll eventually arrive.