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In a recent discussion about the future of Ethereum’s governance and funding models, Ethereum co-founder Vitalik Buterin highlighted an unlikely hero: ZCash.
Buterin pointed to ZCash as a valuable example of a network willing to test governance mechanisms others might find too dangerous.
Notably, ZCash uses off-chain governance to decide how protocol funds are allocated, a model that gives its developers room to experiment but also relies on a more centralized decision-making structure.
“I’m really grateful that ZCash exists. They’ve managed to do things with off-chain governance that would be much harder to attempt on Ethereum,” Buterin noted.
Furthermore, he acknowledged that ZCash’s community is more centralized than he would prefer, but highlighted ongoing efforts such as Shielded Labs that aim to broaden participation and reduce centralization.
Notably, Zcash (ZEC) has risen sharply today. It started the day at $343 and recently reached $393, gaining over 13% in just a few hours, becoming one of the top-performing cryptocurrencies in the last 24 hours.
Moreover, the surge is partly due to news about an upcoming SEC roundtable on crypto and financial privacy, where Zcash’s founder, Zooko Wilcox, will participate.
While speaking about potential changes to Ethereum’s ETH issuance rules, specifically the idea of rewarding certain rollups with newly issued ETH, Buterin cautioned that such a system could easily descend into political chaos.
“The general reason to be scared of that sort of stuff,” Buterin explained, “is basically the possibility that it gets captured.”
In other words, if Ethereum were to directly choose which rollups deserve additional ETH and which do not, it could open the door to lobbying, favoritism, and deep ecosystem conflicts.
To prevent Ethereum’s funding system from becoming politicized, Buterin emphasized the value of indirection.
In the interview, he noted that rather than choosing who receives funding, Ethereum can select mechanisms that decide on behalf of the community, adding layers of neutrality and reducing political pressure.
“The best technology we have for not creating political shitshows is often indirection,” he said. That means Ethereum “could choose a mechanism that decides who gets the money, or even a mechanism that chooses the mechanism that decides.”
This “veil of ignorance” approach ensures no participant knows in advance whether they’ll benefit, encouraging fairness and long-term stability.
The post Ethereum’s Vitalik Buterin: “I’m Really Grateful ZCash Exists” appeared first on CoinTab News.
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