Mike Dudas highlights signs of progressive decentralization in a blockchain, which can be a positive long-term indicator for the underlying asset. Key signs include the founder stepping back, lead investors exiting through staking reward sales, and the launch of a treasury vehicle expanding public ownership. Investors should look for these characteristics as they suggest a more robust and community-driven ecosystem, potentially reducing single-point-of-failure risks and fostering sustainable growth for the associated Layer 1 (L1) blockchain and its decentralized applications (dApps).