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News

Vitalik advocates for the governance structure of Optimism

June 3, 2022 - Around 2 mins mins to read

Vitalik wants L2s to get rid of the token governance voting model. Instead, issue more soulbound NFTs to give smaller holders a chance to participate in governance.

Vitalik

Vitalik supports the governance model of Optimism

Ethereum Co-Founder Vitalik Buterin Shows Support for Optimism’s New Governance Structure

In his view, L2 should get rid of the token governance model (the “richer” people holding more tokens win) and instead issue more soulbound NFTs (these NFTs) as certificates or badges and are non-transferable).

The tweed also noted that proposals like using OP tokens for gas fees show “a clear demonstration of the interests of non-token holders.“

Ethereum’s Layer 2 Scaling Solution launched the first round of its long-awaited OP token airdrop on June 1 as part of a new governance project called “Optimism Collective.”

The new governance structure of Optimism consists of two parties dubbed “Token House” and “House of Citizens”. The former includes OP governance token holders, and the latter consists of “soul-bound” non-transferable citizenship NFT holders.

While it is unclear whether Buterin is fully involved in the proposal from June 2 to use the OP governance token for gas fees or is just glad such a discussion has taken place.

On several occasions, Buterin has voiced his thoughts that the crypto sector needs to “go beyond coin voting” in decentralized finance (DeFi) or decentralized governance (DeGov) as it runs the risk of encountering whale governance token holders that govern the voting process. Buterin argues that this can often lead to a short-term concentration of whales approving proposals intended to inflate the price of certain assets.

Such an approach could result in smallholders and platform users having no say in the DeGov process or what Buterin describes as a lack of non-token seller interests.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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News

Vitalik advocates for the governance structure of Optimism

Vitalik wants L2s to get rid of the token governance voting model. Instead, issue more soulbound NFTs to give smaller holders a chance to participate in governance.

Vitalik

Vitalik supports the governance model of Optimism

Ethereum Co-Founder Vitalik Buterin Shows Support for Optimism’s New Governance Structure

In his view, L2 should get rid of the token governance model (the “richer” people holding more tokens win) and instead issue more soulbound NFTs (these NFTs) as certificates or badges and are non-transferable).

The tweed also noted that proposals like using OP tokens for gas fees show “a clear demonstration of the interests of non-token holders.“

Ethereum’s Layer 2 Scaling Solution launched the first round of its long-awaited OP token airdrop on June 1 as part of a new governance project called “Optimism Collective.”

The new governance structure of Optimism consists of two parties dubbed “Token House” and “House of Citizens”. The former includes OP governance token holders, and the latter consists of “soul-bound” non-transferable citizenship NFT holders.

While it is unclear whether Buterin is fully involved in the proposal from June 2 to use the OP governance token for gas fees or is just glad such a discussion has taken place.

On several occasions, Buterin has voiced his thoughts that the crypto sector needs to “go beyond coin voting” in decentralized finance (DeFi) or decentralized governance (DeGov) as it runs the risk of encountering whale governance token holders that govern the voting process. Buterin argues that this can often lead to a short-term concentration of whales approving proposals intended to inflate the price of certain assets.

Such an approach could result in smallholders and platform users having no say in the DeGov process or what Buterin describes as a lack of non-token seller interests.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

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