Vitalik Buterin believes that ‘degen communism’ could bring fairness to the crypto economy and promote a common good in the midst of market chaos. This concept combines the adventurous nature of “degen” culture with a structured approach to ensure that market volatility does not disproportionately harm anyone.

The Ethereum co-founder suggests a system where smaller users are prioritized in case of a hack or project collapse before compensating larger stakeholders. This approach was supported by Buterin during the Terra Luna crash in 2022.

According to Buterin, implementing this model in project terms of service can create a more equitable system, ensuring that funds are distributed from the bottom up in cases of insolvency. He emphasizes that this is not about government bailouts but about setting expectations within project teams.

Buterin also envisions extending this ideology to meme coins, proposing that projects donate a portion of their issuance to charitable causes. This move aims to create a sense of community and shared responsibility within the whimsical cryptocurrency space.

Furthermore, Buterin advocates for airdrops that benefit individual users and contributors to the public good, as well as governance models that prevent power concentration.

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