Vitalik Buterin discusses the complexities of coordination in decentralized systems.
He emphasizes the need for hybrid governance models that blend economics and politics.
Buterin regrets not communicating the importance of “unbalanced coordination” more clearly.
Ethereum co-founder Vitalik Buterin admitted not effectively communicating the complexities of “unbalanced coordination” in decentralized systems. Looking back at two blog posts he wrote in 2020 and 2021, he explores the connection between coordination and crypto-economics in blockchain governance.
Coordination in Crypto-economics
In his blog posts, Buterin highlighted the difficulties of coordination within decentralized systems. He stressed that while coordination is crucial for collective decision-making, not all forms are positive. Unbalanced coordination—where small groups collaborate at the expense of larger ones—can damage decentralized ecosystems.
Also, Buterin’s posts examined how crypto-economics, the economic principles underpinning blockchain networks, often struggles with governance issues. Specifically, he pointed out that systems dominated by token holders, like decentraliz…
The post Buterin Explores Plutocracy Risks in Token-Based Governance appeared first on Coin Edition.
