TLDR
- Vitalik Buterin proposes a two-layer governance structure combining prediction markets and decentralized preference-setting systems.
- The execution layer relies on open markets to ensure accountability through financial incentives and transparent participation.
- The second layer must avoid token-based voting to prevent 51% control and ensure pluralistic, fair decision-making.
- Anonymous voting tools like MACI are recommended to reduce collusion and protect voter privacy.
- This structure separates execution from judgment, enhancing resilience and fairness in on-chain governance systems.
Ethereum co-founder Vitalik Buterin shared a new direction for on-chain mechanism design, proposing a clear two-layer governance structure. He described a combination of a market-driven execution layer and a decentralized preference layer. This model aims to balance financial incentives with fair, anonymous judgment systems that resist centralized control.
Execution Layer Will Emphasize Accountability Through Markets
In his post on X, Vitalik Buterin emphasized that future systems will rely on open prediction markets to execute decisions transparently and competitively. He stated, “If you make good decisions, you win money; if you make bad decisions, you lose money.” This ensures that accountability becomes an inherent part of decentralized execution.
The proposed first layer functions like a prediction market, where anyone can participate without restriction, and outcomes remain financially driven. According to Buterin, this model supports open participation and rewards decision-making accuracy with measurable results. He called it “the correct way to do a decentralized executive.”
In some cases, however, this layer may rely on centralized executives that remain replaceable and are still judged by a second layer. Buterin added, “Sometimes you will want to keep it simple and do a centralized executive at that layer instead.” This adjustment allows flexibility in protocol implementation while preserving accountability.
Second Layer Will Focus on Pluralism and Capture Resistance
Vitalik Buterin outlined the second layer as a decentralized, anonymous preference-setting system that avoids token-based voting entirely. “Token owners are not pluralistic,” he explained. “Anyone can buy in and get 51% of them.”
Therefore, this layer must avoid financialization and support intrinsic motivation. Votes should be anonymous, and Buterin recommended using tools like MACI to reduce collusion and manipulation in this layer. This structure helps maintain fairness by limiting influence from token holders or external incentives.
He stressed that this layer must be “capture-resistant and non-financialized.” Buterin believes this two-layer method provides clarity when designing future governance systems. He concluded, “Thinking in these two layers explicitly is best.”
The post Vitalik Buterin Outlines Future of On-Chain Governance in Two-Layer Structure appeared first on Blockonomi.
Source: https://blockonomi.com/vitalik-buterin-outlines-future-of-on-chain-governance-in-two-layer-structure/
