Vitalik Buterin Slams Political Tokens, Warns of Bribery Risks

Ethereum co-founder Vitalik Buterin has criticized the use of political tokens, describing them as "vehicles for unlimited political bribery." In a recent message, Buterin took aim at past regulatory strategies, arguing that the influence of former SEC Chair Gary Gensler had given opaque "governance tokens" an edge over more straightforward securities offerings, contributing to the crypto market's excesses.

Buterin also warned about the potential misuse of "political coins" for large-scale bribery and foreign influence. This comes amidst the launch of memecoins by former U.S. President Donald Trump and his wife, Melania, on the Solana blockchain. The $TRUMP and $MELANIA memecoins triggered a frenzy among crypto speculators, with one anonymous trader reportedly making $70 million in unrealized gains within hours of the launch.

Buterin did not explicitly mention the Trump memecoins in his message. Instead, he expressed optimism about a return to more transparent and responsible token sales, similar to the initial coin offerings (ICOs) before 2020 but with enhanced security measures. He envisions a future with improved capital allocation mechanisms that prioritize community values such as privacy, security, and open-source development.

The Ethereum co-founder's statements come amid criticism surrounding the Ethereum Foundation (EF), which is undergoing a leadership overhaul to improve technical expertise and communication with ecosystem stakeholders. The EF has been under fire for its repeated ETH sell-offs to cover operational costs, with community members calling for the foundation to explore staking and other DeFi activities instead of selling ETH.

Buterin asserted his sole authority over the Ethereum Foundation's Treasury and rejected any leadership changes, drawing backlash and sparking concerns about centralization in the Ethereum ecosystem. Addressing these concerns, Buterin clarified that Ethereum's core mission remains decentralized, with the EF being "only one part" of the vast ecosystem. He called for the need for patience as the foundation undergoes reforms to establish a "proper board" and urged the community to focus on constructive criticism and support for Ethereum's long-term vision.