Americans considering to emigrate if “their” candidate does not win the 2024 presidential election might want to consider a novel idea by Ethereum co-founder Vitalik Buterin dubbed “Degen Communism.”
What Happened: In his latest blog post, Buterin suggests that “there is a widespread feeling throughout the Western world that all of our political ideologies are outdated,” as they are unable to address the complexities of the contemporary world.
He proposes “Degen Communism” as a fresh political ideology that embraces chaos while ensuring its outcomes align with the common good.
Degen Communism can be embraced by any entity with a network effect, such as crypto projects, social media platforms, virtual gaming environments and governments.
It’s a political ideology that acknowledges the chaos inherent in these sectors, but modifies key rules and incentives to ensure that the results of this chaos are beneficial to the common good.
See Also: Bitcoin Falls Below $70,000; Flare, dogwifhat Among Top Losers
Buterin uses the world of cryptocurrencies as an example to illustrate the principles of Degen Communism.
Despite its unpredictable nature, the crypto space has not only survived but thrived due to its inherent chaos. Buterin recommends measures to lessen the human harm caused by the downsides of this chaos, such as prioritizing smaller users for refunds in the event of project insolvency.
The principles of Degen Communism are also suggested for application in real estate markets, intellectual property, immigration systems and institutional decision-making. The goal is to embrace dynamism and change, while ensuring that the benefits are distributed equitably and the risks are minimized for the most vulnerable.
Why It Matters: Degen Communism: comes at a time when the cryptocurrency market is embracing volatility in the form of meme coins.
Traders, who dub themselves as “degens” (short for degenerates), embrace meme coins like Dogecoin, which saw 10% rise in value the prior week.
On the other hand, Ethereum ETH/USD fell by 3.3% in the past seven days and has failed to maintain the staggering pace of meme coins. This volatility in the crypto market underscores that a concept like Degen Communism that embraces chaos is inherent in the crypto markets.
Whether it would work as a political ideology remains to be seen.
What’s Next: Topics like the impact of Ethereum as an investment vehicle are expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
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