Ethereum founder Vitalik Buterin has spoken out against Zcash’s (ZEC) potential switch to a token-based governance model, saying it could jeopardize the project’s core values.
In a statement on social media, Buterin stated that token voting is “flawed in many ways” and could lead to long-term erosion, especially for projects that prioritize privacy.
Buterin issued a clear warning, saying, “I hope Zcash can resist the dark hand of token voting.” The Ethereum founder, stating that token voting is worse than the current Zcash governance model, also referenced his previous critique of the governance. He argued that the “median token holder” shaping decisions in token voting could lead to the devaluation of sensitive issues like privacy over time.
While the Zcash ecosystem has been in the news in recent months with discussions about changes to its governance model, Buterin’s position is particularly significant. He has previously stated that privacy-focused projects could move away from decentralization through token voting, and that this model would result in large wallets gaining ground.
*This is not investment advice.