Vitalik Buterin thinks ‘degen communism’ can make the crypto economy fairer and promote a common good amidst the market’s inherent chaos.
The term ‘Degen communism’ merges the adventurous spirit of “degen” The culture is renowned for its high risk, high reward investment strategies. A structured approach ensures that market volatility will not adversely affect any one group.
The Ethereum cofounder has advocated for this method. proposes A mechanism that compensates smaller stakeholders first in the event of a hack or project failure before compensating bigger stakeholder.
Buterin says it is a fairer system which he backed during the Terra Luna crash He also proposes that project teams mention this model in their terms of service, explaining that funds will be prioritized from the bottom up when there is an insolvency. He suggests that the project team mentions this model in its terms of service and explains that funding will be prioritised from bottom to top in case of insolvency.
Two years ago when I first proposed this idea to many, they scoffed at it, misrepresenting my idea as a call for bailouts from the government. But I’m not talking about governments here. I propose that teams include a certain expectation in their service terms.
“The only thing we ask of governments is to pass appropriate laws so bankruptcy courts will recognize the legitimacy and legality of these arrangements.”
– Vitalik Buterin, Co-founder of Ethereum
Buterin extended his vision also to meme coinsThe suggestion is that projects like these donate part of their proceeds to charities, fostering a community spirit and shared responsibility.
Buterin is also a proponent of airdrops, which benefit individual users as well as contributors to public goods. He encourages models for governance that avoid the concentrations of power.
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Source: crypto.news