TL;DR
- Vitalik Buterin defends memecoins, arguing that they have practical applications in daily life, beyond entertainment and speculation.
- Buterin highlights seven potential uses of memecoins, including identity verification in online communities, cross-border payments, and rewards on decentralized social platforms.
- Despite the criticisms and regulatory challenges, the Ethereum co-founder believes that memecoins can contribute to society when used consciously.
Ethereum co-founder, Vitalik Buterin, has come to the defense of memecoins, highlighting their potential for practical applications in daily life. His stance comes in response to growing criticisms within the crypto community that question the relevance and usefulness of these coins, beyond their speculative and entertainment value.
In a recent discussion on X, a user identified as 0xDesigner raised doubts about the relevance of memecoins in the current crypto industry, arguing that they do not bring significant improvements to everyday life. His criticism was joined by Mathew Gould, founder of Unstoppable Domains, who compared memecoins to initial coin offerings (ICOs) and addressed the regulatory challenges they face. Gould suggested that although they could finance brands or causes, regulatory barriers remain a significant obstacle.
* zk reputation/identity/credentials
* p2p cross-border payments (much lower fees and quickly improving UX this cycle)
* decentralized social
* prediction markets (actually usable this cycle)
* privacy
* enterprise apps via zk validiums
* zk + censorship resistant voting— vitalik.eth (@VitalikButerin) June 12, 2024
In the face of these criticisms, Buterin responded with a list of seven reasons why he believes they can add value in various areas. Firstly, he proposed that they could be used to verify identity and reputation in online communities, providing a simple and effective means of establishing credibility. On the other hand, they could also facilitate small cross-border payments, thanks to their low value and ease of transfer, offering an informal alternative for international transactions.
Vitalik Elevates the Social Value of Memecoins
Another use highlighted by Buterin is the integration of memecoins into decentralized social platforms, where they could be used to reward content creators and encourage user participation. This model would be similar to tipping or rewards on popular posts. He also suggested that they could be useful in prediction markets, allowing people to place bets or participate in forecasts of future events.
Continuing with the list, Vitalik believes they serve to offer privacy features in transactions, allowing users to conduct operations anonymously with greater privacy protections. He also mentioned the possibility of integrating them into enterprise applications through ZK Validiums, a type of Layer 2 scaling solution, for specific use cases or experimental projects.
Lastly, Vitalik defended the use of memecoins in governance mechanisms and censorship-resistant voting within their own communities, allowing holders to actively participate in decision-making and project direction.
In March, Vitalik had already taken a stand for memecoins, explaining their potential value in financing public projects and supporting social causes. Despite the controversy, his vision suggests that when used consciously, they can offer significant and unique contributions to society.
