Vitalik Buterin, the co-founder of Ethereum, is now advancing a new idea for city governance that integrates democracy, capitalism, and decentralization. In a recent post on the social media platform, Farcaster Buterin proposed a city model that can be compared to that of a decentralized autonomous organization (DAO). The particularity of this structure is that taxation is the cornerstone of its architecture.
‘For-Profit’ City Model
Buterin envisions “for-profit cities” that balance public good and enterprise, distinguishing them from the typical corporate-run municipalities. He argues for a hybrid governance model where public infrastructure effectively serves all income levels and cities contribute positively to the nation and the world, guided by humanitarian values. This framework would address issues like homelessness through integrated solutions rather than displacement.
Citizen Governance Rights
In the envisioned city, citizens would gain access to assets that provide governance rights, while landowners would face higher taxes but hold less sway over city governance. This approach aligns incentives with the city’s overall success, ensuring that public goods are maintained and improved. The emphasis is placed on land value taxes as a tool to motivate governments to enhance local public goods while leaving the development of the land in the hands of local owners.
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Interestingly, Buterin’s vision comes when decentralized governance is gaining traction in the broader cryptocurrency community. As reported earlier by CryptoTale, Cardano recently launched its “Chang” hard fork as part of its Voltaire era, which focuses on establishing a fully decentralized governance system.
Cardano’s efforts to decentralize blockchain governance resonate with Buterin’s city model. Both initiatives aim to empower communities and distribute decision-making power more equitably.
Cardano’s Governance Push
While Cardano’s Voltaire era is about decentralizing the governance of a blockchain network, Buterin’s proposal extends the concept to real-world city governance. His hybrid model blends decentralized governance with capitalist principles, creating a system that values collective responsibility and private ownership.
Meanwhile, further debates on decentralized governance remain ongoing, but Buterin’s hybrid city model provides a new way of thinking about how these concepts could be translated into real-world contexts. Following Cardano’s vision of decentralization and Buterin’s ideas, these trends in the crypto sphere could find their place in the future governance of both the online and offline spaces.
