Matter Labs CEO Alex Gluchowski has proposed an intriguing concept for an Ethereum court system that resembles a hierarchical court system found in the real world. Here are the key points of his proposal:

1. **Ethereum Supreme Court**: Gluchowski suggests the creation of an 'Ethereum Supreme Court' that would serve as the final authority for resolving disputes related to smart contracts. This court would act as the ultimate arbiter in Ethereum's ecosystem.

2. **Hierarchical System**: The proposed system would consist of a hierarchy of on-chain courts, with each court handling disputes and emergency upgrades within its scope. The top of this hierarchy would be the 'Court of Final Appeal,' implemented as an Ethereum layer-1 soft fork.

3. **Protocol Governance**: Each protocol in Ethereum's ecosystem would have its own governance structure, including mechanisms for normal and emergency upgrades. A special contract would be designated for triggering appeals in case of disputes.

4. **Appeal Process**: When an emergency upgrade occurs, an appeal period would follow, allowing any user to challenge the decision by submitting an appeal to the higher court. To initiate an appeal, the challenger would need to provide a pre-defined bail deposit. Each court would specify the higher court to which appeals can be made.

5. **Social Consensus**: Gluchowski acknowledges that a strong social consensus would be crucial for the effectiveness of this on-chain #court system. It would be designed to handle only 'truly extraordinary' cases.

6. **Alternative Solutions**: While there are #existing solutions for resolving disputes in the crypto space, Gluchowski believes that they are not as effective as the proposed hierarchical court system.

This proposal aims to provide a #formal and structured mechanism for resolving disputes and making decisions within the Ethereum ecosystem, potentially reducing the need for traditional #legal processes in some cases. However, its #success would depend on achieving broad consensus and addressing the associated challenges.

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