DeFi is either truly immutable or permissionless, or it is only “automated finance”.

The TLDR is that behind the scenes the US and EU want global mandatory travel rule, which means KYC, compliance, on every DeFi smart contract, every software wallet, and eventually trezor and nano. This is their starting point, because they basically run the world and want a "suprastate" more or less.

They're just going to legally intimidate, enforce, coerce, extradite, prosecute etc developers until they bleed us dry and fully intimidate any venture capital. VC can't do anything, all major liquidity providers will always be extremely legally exposed.

We need to look at a few facts here:

1) Web 3 helps people in failed states more than developed nations. If a government is particularly terrible and undemocratic, Web 3 being fully immutable and fully anonymous is an absolute necessity.

2) Canada proved that allegedly democratic states will fascistically confiscate funds and politically persecute you for speech and assembly.

3) america has done this in the past, to countless people, notably the Internment of Japanese citizens. america has reneged on countless treaties.

4) Most developing nations are in fact colonially designed "Post-Colonial administrative States" that are designed to largely enrich international companies at the expense of civil liberties for the developing world.

5) "activist" regularly collude with and weaponize the Privitization of Multinational capital institutions to advocate censorship and confiscation of funds, deplatforming of rights to a living, "activist" regularly collude with executive branches of states simultaneously to do extrajudicial, unelected confiscatory and censorial behavior against their political enemies

5b) this sets the precedent to do the same behavior to other outgroups in developing nations, it serves as a playbook for what undemocratic countries can do, and furthers the extreme fascistic behavior of Web2 companies, who also operate overseas in developing nations. It's also already happened in numerous egregious instances I won't get into.

6) Banks and Web2 were used extensively from 2001-to late 2017 and current to further the war on terror, the continued prejudice exists to this day with Persians being blackballed from most of the entire crypto industry, even blackballed from Github.

7) China's entire political system is utterly anti-thetical to crypto, the CCP largely has no use for blockchain technology. The type of human control they want is much easier with SQL databases.

7b) China locked people in their apartments for 60 days, so yes you basically belong to the state there, good luck with speech or finance.

8) People in extremely poor developing nations have absolutely no documentation or their documentation is extremely limited, banking is non existent. If they are given permissioned back doored narc ware automated crypto-finance, their own government will use it to prejudice them deeply, and that's not even getting into what we already do to say Iran as I already mentioned.

9) Web 1 is not state resistant. Self hosting is not state or sovereign resistant. Tor is not enough. Web 1 is not "neutral territory", in that individual websites can easily be targeted, you do not have a "platform network commons of neutrality" to give some sort of "lost in the crowd effect" to protect you from political persecution.

9b) Though the absolute blockchainifcation of everything is stupid, and excess tokens are stupid, Web 1 basically has no state resistance to corrupt or ideological factions of the state, or states, without some finality, fidelity, and encryption via Zkrollups and layer 3 features and or Lightning, or IBC, etc. offchain engineering without onchain guarantees makes web 1 deeply vulnerable and deeply unscalable. This is why Web2 beat Web 1's network effect so severely, scale and adoption based on peer to peer usage.

10) Currency Boards, Central Banks, and Lebanon as example. Need I say more.

11) and this is important, Daos that we have, have made, or have tried to make are by definition much more democratic and transparent than Western Governments. Whatever international consensus you think is needed to public infrastructure, taxation, charity, children, the elderly, whatever concern you have about oversight of "criminals", public networks like ethereum, and public protocols like aave are infinitely more democratic than the US government, SEC, or countless evil web 2 companies like Reddit.