Ethereum co-founder Vitalik Buterin in his latest post addresses the growing concern over the chaotic nature of the cryptocurrency space. He went on to propose solutions to reduce the negative impact while aiming to harness its potential. However, he gave out a theory of Degen communism which he suggest is the only correct political ideology.
ETH co founder gives out solutions
As per Buterin, it is required to go with a fresh approach in handling project failures or hacks. This can be done by prioritizing smaller users for refunds up to a certain threshold, rather than making refunds proportional. He suggests that this strategy aims to protect the weak participants from bearing the brunt of losses during downturn situations.
Keeping the inherent volatility of the crypto market in sight, Buterin cited the need to leverage this chaos for positive outcomes. He proposed charitable contributions where meme coins and games will allocate a part of their issuance to charitable causes. This will help a culture of giving back to the crypto community.
He added that implementing airdrops that sort individual users and public contributors ensures that a fair distribution of rewards takes place. This can include open-source developers for a time.
Buterin stated that proactive funding programs for public goods can be made. He cited an example similar to the successful rounds of funding seen in projects like Optimism. This can turn out to be an essential infrastructure development.
It is important to note that the Ethereum founder mentioned empowering communities to hold governance token holders accountable for their decisions. This can be done by enabling the possibility of forking projects and zeroing out tokens held by concentrated players.
Degen is already hitting the market
One of the most interesting proposals he gave out is the rise in proof of personhood protocols and community participation proofs. He stated that this makes it feasible to administer initiatives focused on individual users more reliably than before.
Ethereum founder’s bid on Degen communism comes in Degen Chain which is a layer-3 blockchain on Base networks. It surged with $100 million in transactions within 24 hours hosting 7,500 contracts and 2,300 tokens since its launch.
DSWAP leads with a $14 million valuation, while DPEPE sits at $23 million. Most tokens are below $1 million in market cap. With no stablecoin support, DEGEN token reigns at 6 cents by soaring 500% from Thursday’s 1 cent.
