Vitalik Buterin shares new proposal to build a fairer crypto economy

Vitalik Buterin believes that “degen communism” could bring fairness and foster a collective benefit in the crypto economy, helping navigate the market’s inherent disorder. (Note: “Degen communism” is an informal term, likely referring to a decentralized and community-driven approach to economic organization in the crypto space.)

“Degen communism” combines the daring attitude of degener culture, which involves risky investments with potentially large rewards, with a systematic plan to minimize the negative impact of market instability on everyone involved.

According to Ethereum‘s co-founder, who supports this method, a system should be implemented where smaller users are prioritized and fully reimbursed before larger stakeholders in the event of a hack or project failure.

Degen communism: the only correct political ideology

— vitalik.eth (@VitalikButerin) April 1, 2024

Buterin referred to it as a more fair system which he advocated for during the Terra Luna crisis in 2022. He further suggested that project teams disclose this approach in their terms of service, outlining that funds would be distributed prioritizing the bottom tier during insolvency situations.

Two years ago, when I first suggested this concept, it was met with skepticism and misinterpretation by some, who incorrectly assumed it involved seeking government financial assistance. However, let me clarify that in my proposal today, there is no mention or request for any involvement from governments. Instead, I propose that project teams include an expectation in their service agreements.

Governments are asked to pass the necessary laws, allowing bankruptcy courts to recognize such arrangements as valid.

– Vitalik Buterin, Co-founder of Ethereum

need a lyftocracy to compete with the ubermensch

(or maybe some newfangled “depin” or whatever to compete with both)

— vitalik.eth (@VitalikButerin) April 1, 2024

Instead of just creating meme coins, Buterin proposed an idea: these projects should contribute a percentage of their creation to charities. By doing so, meme coins could build a stronger sense of connection and collective obligation among their communities.

Buterin supports giving out airdrops to individual users and those who contribute to the greater good, while promoting governance structures that prevent the accumulation of power in the hands of a few.

Read More

2024-04-01 21:24