How Web3 Industry Technicians Can Mitigate Legal Risks

With the rapid development of the Web3 industry, more and more technical personnel are participating in the development of related projects. However, some projects that claim to be related to blockchain, GameFi, etc., may actually involve a pyramid scheme-like operating model, posing legal risks. Several recent cases have shown that even programmers who only undertake technical development work may be held criminally liable for their involvement in the design and implementation of key functions.

This article will systematically analyze common legal risk points in Web3 projects from the perspective of technical personnel, focusing on the following issues:

1. What technological actions may be recognized as accomplices to pyramid schemes?
2. Does the technical outsourcing party constitute an accomplice to pyramid selling?
3. How is the technical leader defined as the "organizer"?
4. How can technical participants strive for acquittal or leniency?
5. How to identify risky projects in advance and build a legal defense?

Several Situations Where Technical Personnel Are Easily Involved in Cases

1. Design or implement core logic for multi-level distribution, team commissions, etc.
2. Develop a token economic model with mechanisms such as locking and unlocking.
3. Deploy a smart contract with a tiered reward structure
4. Fully participate in the project as CTO or technical partner.
5. Listed as a core team member in materials such as the white paper.

Criteria for Judicial Accountability

Judicial authorities determine whether technical personnel constitute accomplices in pyramid schemes, mainly considering the following factors:

1. Are you aware that the project has a pyramid scheme nature?
2. Is there any communication with the project party?
3. Are there any project benefits or special status obtained?
4. Does the developed content have neutral attributes?

Key Points of Effective Defense

1. Proof of Unawareness: Completed a one-time delivery solely according to functional specifications, without participating in the overall scheme discussion.
2. Denial of Meaningful Contact: No participation in project architecture design, no joint development or promotion activities.
3. Emphasize no profits: No tokens held or rebates received, no special status.
4. Highlight Neutral Attributes: The developed content is a general system, not a specialized rebate function.

Risk Prevention Recommendations

1. Identify the characteristics of pyramid schemes in the early stages of the project, such as multi-level commissions and static income.
2. Clarify technical boundaries and retain communication records, contracts, code, and other evidence.
3. Avoid participating in marginal activities such as operation and promotion
4. Identify funding issues and stop losses in a timely manner, preserving relevant evidence materials.

Technical personnel should enhance their risk awareness, identify project risks before collaboration, and clarify their own responsibilities. By reasonably delineating technical boundaries and avoiding sensitive behaviors, it is possible to effectively reduce the risks involved and maintain the legal bottom line. In the current environment of tightening regulation, having a basic legal awareness and risk identification ability is crucial.