Vitalik Buterin, the co-founder of the largest smart contract platform, Ethereum, has stressed the need to effectively handle the supply and allocations of digital tokens, highlighting the dangers of poor money and/or crypto token issuances to humanity.
The Ethereum (ETH) founder, who is popularly known for his several hefty philanthropic gestures, noted that ineffective allocation of social capital is an important humanitarian problem that should be attended yet it remains one of the most undervalued issues. According to him, ‘distributing a bit of money wrongly’ is far worse than human trafficking.
In relating this theory to the tokenomics of cryptocurrencies, Vitalik Buterin cited that oftentimes, his name has been abused and exploited by some memecoin and shitcoin projects in the industry.
Per the Thursday Twitter thread, the Ethereum (ETH) creator stressed that memecoins creators should desist from gifting him part of their tokens’ supply. He recommended that they channel it directly to trusted charities and organizations endorsed by him like GiveWell or OpenPhil among others.
“This is why I recommend all the dog coin / word coin people to not issue tokens to *me*. If you *must* abuse my name, give the supply directly to those orgs and market it as “X% of supply donated to Vitalik-endorsed charities”. But better just talk about the causes directly,” Buterin stated.
To further emphasize the practice of credible benevolence, the outstanding crypto builder called out project founders to shun the habit of reserving tokens for themselves.
He wrote, “If you make a coin, don’t keep the supply for yourself and “intend” to give it later. Just issue half straight to GiveWell or OpenPhil or whoever. Don’t insert your own friggin fund in the middle, just give it to them. Much like credible neutrality, try credible benevolence!”
Read Also: Vitalik Buterin Unveils a Modified Ethereum Roadmap to Fix Censorship Concerns
CZ Binance who concurred with Buterin’s opinions also argued that issuing new undefined coins is not necessary. He said donations could always be made using any of the top 10 crypto assets.
According to the Binance CEO, creating new undefined digital currencies poses all kinds of problems to the industry, including liquidity problems and inflated valuations among others. On the other hand, Vitalik Buterin noted that creating new cryptos is not bad except when it doesn’t make sense to do so.
“Agree with the thread until the “issuing a coin part”. If you are making a donation, use a top 10 existing coin. Issuing a coin causes all kinds of problems. Is it for your own benefit (coins you hold) or charity? Not to mention the liquidity issues, inflated valuations, etc,” he commented.
Read Also: CZ Binance: “DO NOT Trade FTT Tokens. If You Have a Bag, You have a Bag. DO NOT Buy or Sell”
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