Ethereum co-founder Vitalik Buterin proposed a new system of on-chain governance. His idea uses two layers to improve both accountability and motivation in decentralized networks.
First, the base layer focuses on financial incentives. It works like a prediction market. Users can earn rewards if their predictions are correct. This makes the system more transparent and holds people accountable for their decisions.
Second, the top layer is the non-financial layer. Participants can vote anonymously without financial pressure. This layer encourages people to act based on intrinsic motivation. In other words, you’re rewarded for doing what’s best for your community, not just for profit.
How the two layers work together
The two layers work together to solve common problems in blockchain governance. On the other hand, the finance layer ensures that actions have real results. On the other hand, in the non-financial class, people can safely express their preferences.
Additionally, tools such as MACI (Minimal Anti-Collusion Infrastructure) allow you to keep your votes private. This prevents manipulation and ensures fair results. Therefore, combining these two layers provides a balance between accountability and fairness.
Community reaction
There are many different opinions shared in the Ethereum community. Many praised Buterin’s vision for making governance fair and effective. They see these two layers as a way to protect decentralization while keeping participants motivated.
However, some members expressed concerns. They questioned whether prediction markets and anonymous voting could scale smoothly. They also worried that the rules would be difficult to enforce in practice.
Still, the proposal sparked a useful discussion. We highlight the challenge of combining real-world incentives with community ideals. It also shows that Ethereum continues to explore new ways to improve governance.
Why is it important to Ethereum?
Ethereum could become more powerful if a two-tier system is adopted. This can reduce collusion and encourage decisions that benefit the network in the long run. Additionally, it could serve as a model for other blockchain projects facing similar governance challenges.
Overall, Vitalik Buterin’s proposal emphasizes balance. This shows how blockchain systems can reward accountability while supporting voluntary, community-driven participation. This step could help make Ethereum more resilient and fair.
