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Vitalik Buterin Sees Stable DeFi as Key to Ethereum’s Future
Key Takeaways
- Vitalik Buterin suggests that low-risk DeFi can provide Ethereum with stable, long-term revenue without compromising its values;
- He points out a divide between profitable yet speculative apps and value-driven projects that often struggle financially;
- By using dependable DeFi tools like stablecoin lending, Ethereum could mirror Google’s model of funding innovation through steady income.
Vitalik Buterin, co-founder of Ethereum, shared his view on how Ethereum
In a blog post published on September 20, Buterin pointed out that many of the projects that have generated revenue, such as non-fungible tokens (NFTs), meme coins, and speculative trading, do not always align with the values that initially drew people to Ethereum.
On the other hand, applications with social, artistic, or public-interest goals often fail to generate enough income to support themselves.
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To address this, Buterin proposed that more stable DeFi services could become a consistent source of income.
He mentioned protocols like Aave
He compared this idea to how Google earns its main revenue from search and ads, even though it also builds products like phones and browsers. While those projects matter, they do not make nearly as much money.
Ethereum could do something similar by using reliable finance tools to earn money, while supporting other useful but less profitable projects.
However, since Ethereum is decentralized, it can avoid the negative effects seen in traditional companies. For example, he criticized Google for relying on ads that encourage the collection of user data, something that does not align with open-source values.
On September 13, Buterin shared concerns about involving artificial intelligence (AI) in blockchain project governance. What did he say? Read the full story.