Vitalik Buterin believes that “decadent communism” can make the crypto economy fairer and promote the common good amidst the inherent chaos of the market.
The term “Degencommunism” refers to the adventurous spirit of the “Degen” culture, known for its high-risk, high-return investment strategies, and its structured approach to ensure that the fallout from market volatility does not cause undue harm. It is a fusion of approaches.
Supporting this approach, Ethereum's co-founders have proposed a mechanism for small users to become whole first before compensating larger stakeholders in the event of a hack or project collapse.
Buterin called it a fairer system and supported it during the 2022 Terra Luna crash. It also suggested that the project team mention this model in its terms of service, explaining that in the event of bankruptcy, funds would be prioritized from the bottom up.
“Two years ago, when I proposed this idea, many people looked down on it and misinterpreted it as if this idea was about asking for government bailouts. I'm not suggesting any relationship. Rather, I'm suggesting that project teams include expectations in their terms of service.
The only requirement on the government is that appropriate regulations be passed so that bankruptcy courts recognize the legitimacy of such arrangements. ”
– Vitalik Buterin, Ethereum Co-Founder
Buterin also extends his vision to memecoins, where such projects donate a portion of their mintage to charity and where the quirky cryptocurrency helps foster a sense of community and shared responsibility. he suggested.
Buterin also advocates for airdrops that favor individual users and public interest contributors, and encourages governance models that prevent concentration of power.
