Vitalik Buterin thinks he’s cracked the code on fixing blockchain governance. The Ethereum co-founder wants to use anonymous voting to stop wealthy token holders from hijacking decentralized autonomous organizations.
The system uses MACI technology to make vote-buying nearly impossible. Think of it as adding a privacy shield to blockchain governance without sacrificing transparency. Anonymous voting could reshape how DAOs operate from the ground up.
Buterin outlined a two-layer design in a recent post. The first layer handles accountability through prediction markets. The second focuses on preference-setting using anonymous votes. It’s a marked shift from his 2024 stance against crypto anonymity.
How the Two-Layer System Actually Works?
The framework splits governance into two distinct parts. Prediction markets act as what Buterin calls a “decentralized executive.” These markets hold participants accountable for their choices through skin in the game.
The preference layer operates differently. Here, anonymous voting takes center stage. Voters can’t prove how they voted, which kills bribery incentives. Zero-knowledge proofs verify results without exposing individual choices.
MACI technology powers this privacy layer. Originally proposed by Buterin himself, MACI uses encryption to prevent collusion. According to the official MACI documentation, it makes vote-buying schemes ineffective because voters can change their votes secretly.
The system addresses a core weakness in token-based governance. Wealthy holders can accumulate 51% control and dictate outcomes. Anonymous voting breaks this pattern by removing the financial incentive to buy votes.
Also Read: Can Ethereum Survive Without Vitalik? Founder’s 7-Step Survival Plan
Why DAOs Need Better Governance?
Current DAO governance models struggle with serious problems. Token holders often make decisions based on short-term profits rather than long-term health. Whales dominate votes through sheer token volume.
Farcaster’s recent struggles highlight these challenges. The decentralized social platform returned $180 million to investors after failing to sustain growth. Co-founder Dan Romero admitted the platform needed new leadership despite having 250,000 monthly active users.
BitClout faced similar issues in 2021. The creator coin platform raised $100 million from major VCs but was later accused of operating a pump-and-dump scheme. Values fluctuated purely on trading activity rather than actual utility.
These failures show why governance reform matters. DAO systems need protection against capture by wealthy participants or coordinated groups. Anonymous voting offers one solution to this structural problem.
The Technology Behind MACI
MACI stands for Minimum Anti-Collusion Infrastructure. It’s an open-source tool built specifically for private on-chain voting. The technology combines Ethereum smart contracts with zero-knowledge proofs.
Here’s how it prevents bribery: voters can secretly change their vote key at any time. Even if someone shows proof of voting a certain way, that vote might already be invalid. The briber has no way to verify the vote actually counted.
The coordinator tallies results off-chain using cryptographic proofs. These proofs get verified on-chain, ensuring accuracy without revealing individual votes. It’s transparency meets privacy in a single system.
Buterin recently suggested implementing this on Farcaster or Lens Protocol. Users holding N ETH could post opinions every 120 million divided by N seconds. The system would verify holdings through zero-knowledge proofs without exposing wallet addresses.
Also Read: Vitalik Proposes the Future of Gas Fees on Ethereum
A Complete Reversal from 2024
This proposal contradicts Buterin’s August 2024 position completely. Back then, he called for ending the anonymous society in crypto. He argued that anonymity couldn’t solve collusion challenges.
Vinay Gupta, a prominent blockchain developer, sharply criticized that earlier stance. Gupta warned that rich, intersectional identities would create surveillance states. He called it “a genuinely terrible idea” that undermined crypto’s core value of self-sovereignty.
What changed Buterin’s mind? Likely the string of failed experiments in crypto social platforms. The creator coin model didn’t deliver on its promises. Governance systems based on pure token voting kept failing.
The shift reflects growing recognition that DAO governance needs fundamental redesign. Token voting alone creates more problems than it solves. Privacy features might actually strengthen accountability rather than weaken it.
Creator DAOs as an Alternative Model
Buterin proposed a new creator coin system that doesn’t rely on tokens for governance. Instead, it uses non-token-based DAO structures inspired by Protocol Guild.
Members would vote anonymously to admit new creators. These DAOs would focus on specific content styles or regional interests rather than chasing universal appeal. Initial membership gets handpicked to maximize alignment.
Token speculators could still participate by predicting which creators get accepted. Successful admissions trigger coin burns funded by DAO proceeds. The ultimate deciders become high-value content creators, not speculators.
This contrasts sharply with platforms like Zora. Current systems reward people with existing high social status. Emerging talent struggles to break through. Buterin’s model aims to change that dynamic.
He pointed to Substack as a success story. The platform uses hands-on curation and revenue guarantees for selected creators. That human element made the difference where pure token systems failed.
Also Read: Is Ethereum in Danger? Vitalik Warns Quantum Computers Could Break ECC by 2028
Could This Actually Stop Governance Attacks?
The timing of this proposal isn’t random. DAO treasuries now hold billions of dollars, making governance manipulation increasingly profitable. When one entity controls enough tokens, they essentially control the entire organization.
MACI-based anonymous voting could become the standard for critical decisions. Protocol upgrades, treasury allocations, and major partnerships all involve high stakes. Adding privacy to these votes removes the financial incentive to bribe participants.
Some critics worry that anonymity weakens accountability. But MACI solves this through clever cryptography. Results stay verifiable and transparent while individual votes remain hidden. You get both privacy and proof.
Multiple projects have already tested token-based systems that failed spectacularly. Whales dominated votes. Retail holders got steamrolled. The pattern repeated across dozens of DAO experiments.
Buterin’s framework offers a way out of this trap. Whether developers actually implement it depends on solving coordinator trust issues and improving user experience. The technology works in theory. Proving it works at scale is the next challenge.
One thing seems clear: pure token voting creates too many attack vectors. As treasuries grow larger, the stakes get higher. Systems need stronger defenses before the next wave of governance exploits hits.
What is anonymous voting in crypto?
Anonymous voting lets participants cast votes privately using encryption. The results stay public and verifiable, but individual votes remain hidden. This prevents bribery since voters can’t prove how they voted.
Also Read: What is the Ethereum Virtual Machine (EVM) and How It Works?
How does MACI prevent vote buying?
MACI allows voters to secretly change their voting key anytime. Even if someone proves they voted a certain way, that vote might already be invalid. Bribers can’t verify that the votes were actually counted as promised.
Why did Vitalik change his mind about anonymity?
Failed experiments with creator coins and governance attacks likely influenced his thinking. Platforms like BitClout and Farcaster struggled with token-based systems. Privacy features now seem necessary for protecting DAO governance.
Can this system work for large-scale voting?
The technology exists but faces implementation challenges. Coordinator honesty remains critical for collusion resistance. User experience needs improvement before mainstream adoption becomes realistic.
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