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” culture, known for its high-risk, high-reward investment strategies, with a structured approach to ensure that the fallout from market volatility disproportionately harms none.
Advocating for this approach, the Ethereum co-founder proposes a mechanism where smaller users are made whole first during any hack or project collapse before compensating larger stakeholders.
Buterin calls it a more equitable system, which he supported during the Terra Luna crash in 2022. He also proposes that project teams mention this model in their terms of service, explaining that funds will be prioritized from the bottom up in insolvency.
“Two years ago, when I proposed this idea, many treated it with scorn, misrepresenting the idea as asking for government bailouts. Here, though, I am not proposing anything to do with governments; rather, I am proposing that project teams put into their terms of service an expectation.
The only request to governments is that appropriate rules get passed so that bankruptcy courts acknowledge the legitimacy of such arrangements.”
– Vitalik Buterin, Co-founder of Ethereum
— vitalik.eth (@VitalikButerin) April 1, 2024need a lyftocracy to compete with the ubermensch
(or maybe some newfangled "depin" or whatever to compete with both)
Buterin also extended his vision to meme coins, suggesting that such projects donate a portion of their issuance to charitable causes, helping whimsical cryptocurrencies foster a sense of community and shared responsibility.
Buterin also advocates for airdrops that favor individual users and public good contributors and encourages governance models that prevent the concentration of power.