He argued that token voting may seem simple on the surface, but it can weaken core values such as privacy. His comments have renewed interest in how communities protect their missions as they grow.
Token-based governance is a system where people who hold a project’s token vote on upgrades, funding plans, and policy questions. It gives voting power to those with the largest holdings. Buterin believes this creates a risk for privacy-focused projects because decisions become controlled by what he calls the median token holder rather than by people who deeply value privacy. He warned that token voting may reward people who want short-term gains, not long-term protection of sensitive features.
Zcash has always marketed itself as a privacy-first blockchain. Its shielded transactions help users hide details about their activity. Buterin argued that handing final decisions to token holders could place these protections at risk. If a future proposal makes privacy weaker but boosts returns, he worries that voters might approve it. He went so far as to say token voting would be worse than Zcash’s current governance model because it could slowly chip away at the principles the community has defended for years.
A real-world example helps show why this concern exists. In 2022, a major DeFi project saw its voting process overwhelmed by one large investor who used borrowed tokens to influence a key decision. The outcome was reversed later, but the episode showed how token-based systems can be captured by people with resources rather than those with long-term commitment.
Ethereum explained that its upcoming Fusaka upgrade will arrive on December 3rd and aims to push the network closer to global scale while keeping its open and decentralized design. The team said users will see faster and safer interactions thanks to better data scaling that brings near instant transactions and mobile wallets that can use secure phone based passkeys at lower cost.
Rollups and layer two networks will benefit from PeerDAS, also known as EIP seven five nine four, which can raise data capacity by as much as eight times through data sampling. This can make blob fees cheaper and give rollups more room to grow while keeping the network widely distributed.
For app creators and DeFi developers, Fusaka sets the base for experiences that feel instant by cutting transaction wait times from minutes to milliseconds through based preconfirmations. Lower costs add another boost to usability. Ethereum also noted that developers who depend on very large transactions should check the new per transaction gas limit of two to the twenty fourth power to make sure their apps remain compatible.
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