On December 31st, PANews reported that Ethereum co-founder Vitalik Buterin published an article titled "Balance of Power," exploring the relationship between powerOn December 31st, PANews reported that Ethereum co-founder Vitalik Buterin published an article titled "Balance of Power," exploring the relationship between power

Vitalik: Crypto projects should prioritize a decentralized model to avoid excessive concentration of power and related risks.

2025/12/31 10:21

On December 31st, PANews reported that Ethereum co-founder Vitalik Buterin published an article titled "Balance of Power," exploring the relationship between power and checks and balances. Vitalik points out that many crypto projects, during their development, often focus solely on their "business model"—how to continuously acquire resources to support team operations—while neglecting the equally crucial "decentralized model"—how to avoid excessive concentration of power within the project itself and the potential systemic risks. He argues that in some scenarios, decentralization is naturally easier to achieve. For example, in language systems like English, or open protocols such as TCP, IP, and HTTP, the lack of a clear centralized control point makes it difficult for a single entity to monopolize dominance. However, in other use cases, decentralization does not occur naturally but requires conscious institutional and architectural design by the project team.

Vitalik emphasized that how to achieve the flexibility and efficiency of centralization without incurring its drawbacks will be a crucial challenge that the crypto industry must confront for a considerable period of time. He urged projects to rethink their power structures and make "decentralization" a design goal as important as their business models.

Market Opportunity
Power Protocol Logo
Power Protocol Price(POWER)
$0.32711
$0.32711$0.32711
+0.40%
USD
Power Protocol (POWER) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

World Liberty Financial Approves 100% Treasury Fee Allocation for Token Buybacks

World Liberty Financial Approves 100% Treasury Fee Allocation for Token Buybacks

The post World Liberty Financial Approves 100% Treasury Fee Allocation for Token Buybacks appeared on BitcoinEthereumNews.com. World Liberty Financial passes governance proposal with 99.8% community support Platform will use all treasury liquidity fees for WLFI token buybacks and burns Token remains down 28% from launch despite previous burning of 47 million tokens World Liberty Financial has passed a governance proposal directing 100% of treasury liquidity fees toward token buybacks and permanent burns following disappointing price performance since its September launch. The Trump family-backed cryptocurrency project secured overwhelming community approval with 99.8% voting in favor while only 0.06% opposed the measure. The approved mechanism aims to reduce circulating supply and create additional demand through systematic token removal from markets. According to the governance proposal, this strategy “removes tokens from circulation held by participants not committed to WLFI’s long-term growth and direction, effectively increasing relative weight for committed long-term holders.” Multi-Chain Implementation Targets Supply Reduction The buyback program will collect fees from WLFI liquidity positions across Ethereum, BNB Chain, and Solana networks. These accumulated fees will fund open market purchases of WLFI tokens, which are subsequently sent to burn addresses for permanent removal from circulation. However, the proposal lacks specific estimates regarding fee generation amounts, making it difficult to assess the potential market impact of the buyback operations. The platform has not disclosed projected revenues or timelines for meaningful supply reduction through this mechanism. The governance vote occurred nearly three weeks after WLFI’s September 1 token launch, which resulted in a 40% price decline within the first three trading days. This sharp correction caused substantial losses for early investors and whales who participated in the initial distribution. Current market data shows WLFI trading at $0.2223, representing a 28% decline from launch levels according to CoinMarketCap. The continued price weakness persists despite the project’s previous attempt to support valuation through a 47 million token burn executed on September 3.…
Share
BitcoinEthereumNews2025/09/20 12:39
The best IPO stocks to watch in 2026

The best IPO stocks to watch in 2026

The post The best IPO stocks to watch in 2026 appeared on BitcoinEthereumNews.com. This year has seen more than two hundred companies going public, and with some
Share
BitcoinEthereumNews2025/12/31 19:26
Stop Building AI Features Without Doing This First

Stop Building AI Features Without Doing This First

In social media, precision matters, especially in the wild context of comment threads. Think Outcomes, Not Features. Always define the problem before thinking about
Share
Hackernoon2025/12/31 13:01