Ethereum’s Vitalik Buterin shared an interesting tweet about decentralized governance. Check it out below.
Decentralized governance is necessary, but coin voting governance in its current form has many acknowledged and unacknowledged dangers. Augmenting or moving beyond coin voting is a key part of the solution:https://t.co/pZQ4sLAbEy
— vitalik.eth (@VitalikButerin) August 16, 2021
Vitalik’s article begins by stating that “One of the important trends in the blockchain space over the past year is the transition from focusing on decentralized finance (DeFi) to also thinking about decentralized governance (DeGov). While the 2020 is often widely, and with much justification, hailed as a year of DeFi, over the year since then the growing complexity and capability of DeFi projects that make up this trend has led to growing interest in decentralized governance to handle that complexity.”
The same notes continue and offer some examples inside of Ethereum: YFI, Compound, Synthetix, UNI, Gitcoin and others have all launched, or even started with, some kind of DAO.
“But it’s also true outside of Ethereum, with arguments over infrastructure funding proposals in Bitcoin Cash, infrastructure funding votes in Zcash, and much more,” Buterin notes.
Someone hopped in the comments and said: “I agree with the whole article, and solution 2 seems very interesting, but I am missing one thing: anonymity. By switching to Proof of Personhood systems, the identity and political preferences become public unless there is zk-KnowYourVoter or zk-voting. And this is dangerous.”
Another commenter said: “Love this. If DeFi is to become the foundation of global finance, and I believe it can, it’s got a lot of maturity left in DeGov. I’m about to launch an ERC-20 project with we believe valuable innovations not seen before.”
Ethereum has upside potential
Now, popular crypto trader Michaël van de Poppe is tracing the path of Bitcoin and Ethereum.
He pointed out that ETH is facing resistance at $3,270, and he said that he might consider a quick trade at $3,160.
The trader said that ETH might crack through the resistance area, but this depends on the way in which BTC performs at the current stage.