Ethereum co-founder Vitalik Buterin has expressed concerns about vulnerabilities in some new solutions in the Decentralized Autonomous Organization (DAO) space. Using Futarchy as an example, Buterin highlighted a bribeable layer in the utility function. He also emphasized the importance of designing robust governance systems for such protocols.
In a recent tweet, Buterin referenced a 2021 article where he discussed the potential for hackers to exploit these vulnerabilities and manipulate the system. He believes that the vulnerability of coin voting lies in the combination of economic interests and the right to participate in governance. Buterin further elaborated that while these systems aim to align power and responsibility, it is easy to separate the two.
Related: Buterin Explores Plutocracy Risks in Token-Based Governance
The emergence of new decentralized governance models that allow participants to “rent” their votes is causing concern within the blockchain community. Many analysts point out various issues with this innovation, including delegation costs, process complexities, and preferences of large holders.
Some analysts are skeptical about the sustainability of these voting markets, especially considering the criticism they have received. There are concerns that selling votes could lead to governance problems beyond the immediate protocol. Instead of allowing users to relinquish their voting rights, many argue that providing better avenues for expression would be more prudent.
Related: Drift Protocol’s Roadmap to Decentralized Governance and Inclusion
It is important to note that in his 2021 article, Buterin foresaw the growing popularity of decentralized governance, deeming it a necessary risk in the blockchain industry. At that time, the Ethereum co-founder urged the industry to move towards more reliable protocols beyond the current form of coin voting.
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