Vitalik Buterin believes that “digen communism” could make the cryptocurrency economy fairer and promote the greater good amid the inherent chaos of the market.
The term “dejen communism” combines the adventurous spirit of the “dejen” culture, known for its high-risk, high-reward investment strategies, with a systematic approach to ensuring that no one is disproportionately harmed by the fallout from market fluctuations.
In order to defend this approach, the Ethereum co-founder proposes a mechanism whereby small users are made whole first during any project hack or collapse before larger stakeholders are compensated.
Buterin calls this model the most equitable system, and is what he supported during the Terra Luna collapse in 2022. He also suggests that project teams mention this model in their terms of service, explaining that funds will be prioritized from the bottom up in the event of insolvency.
“Two years ago, when I proposed this idea, many treated it with disdain, misrepresenting the idea as a demand for government bailouts. But I'm not suggesting anything about governments; I'm suggesting that project teams set expectations in their terms of service.”
The only requirement for governments is to adopt appropriate rules so that bankruptcy courts will recognize the legality of such arrangements.
– Vitalik Buterin, co-founder of Ethereum
Buterin also expanded his vision to include meme currencies, suggesting that such projects donate a portion of their issuance to charitable causes, helping weird cryptocurrencies foster a sense of community and shared responsibility.
Buterin also advocates airdrops that favor individual users and contributors to the public good and encourages governance models that prevent the concentration of power.
