Vitalik Buterin shares new proposals for building a fairer cryptocurrency economy.
Vitalik Buterin believes that ‘degen communism’ can make the cryptocurrency economy fairer and promote the common good amidst the inherent chaos of the market.
The term ‘Degen communism’ combines the adventurous spirit of the ‘Degen’ culture, known for its high-risk, high-return investment strategies, and a structured approach to ensure that the damage caused by market volatility does not disproportionately harm anyone.
Ethereum co-founders who advocate this approach propose a mechanism in which smaller users would first make up the whole in the event of a hack or project collapse, before compensating larger stakeholders.
Buterin calls it a fairer system and supported it during the Terra Luna crash in 2022. He also suggested that project teams mention this model in their terms of service, explaining that funds will be prioritized from the bottom up in the event of insolvency.
“When I proposed this idea two years ago, many people despised it, mistaking it as a call for government relief. But here I am not suggesting anything to do with government. Rather, I am suggesting that project teams incorporate expectations into their terms of service.
Our only request to the government is that appropriate rules be passed to enable bankruptcy courts to recognize the legality of such agreements.”
– Vitalik Buterin, Ethereum co-founder
Buterin also extended his vision to meme coins, suggesting that such projects donate a portion of their issuance to charity, helping the quirky cryptocurrency foster a sense of community and shared responsibility.
Buterin also advocates airdrops that favor individual users and public interest contributors, and promotes a governance model that prevents concentration of power.