Vitalik Buterin Criticizes Zcash Token-Based Voting System

Jakarta, Pintu News – Ethereum founder Vitalik Buterin issued a stern warning to the Zcash community not to adopt a token-based voting system in governance.

In a post on X on November 30, Buterin argued that such a system would encourage policies oriented towards short-term price incentives, which could come at the expense of the long-term civil liberties that the project seeks to protect.

Buterin Highlights Governance Risks to Privacy

Buterin attributes his position to arguments he outlined in a 2021 essay on decentralized governance. He emphasized that systems based on token weighting have vulnerabilities such as unbundled rights, which allow for secret purchasing of votes. These systems tend to concentrate influence in the hands of large token holders, while small token holders have little accountability.

Many small participants will probably vote regardless of the outcome if they feel their individual impact is insignificant. Buterin described token-based voting as “bad in every way,” and stated that the system is worse than the existing Zcash structure.

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Community Members’ Arguments on Decentralized Governance

Some community members argue that the current committee-based framework is outdated and should be replaced. Mert Mumtaz, CEO of Helius and pro-Zcash investor, stated that this debate highlights broader governance issues.

Mumtaz argues that markets have built-in correction mechanisms as bad decisions are punished through price reductions, shifts in governance influence, and collective knowledge updates. He notes that committees lack such feedback and can remain detached from real-world outcomes.

He compares this separation to what Nassim Nicholas Taleb calls “interventionistas,” i.e. bureaucrats who make important decisions without assuming the associated risks.

The Governance Debate and Its Impact on Zcash

While acknowledging the flaws in token-based voting, Mumtaz stated that static committees pose a deeper problem because they “cannot be criticized and are not accountable to anyone.”

He added that systems based on market dynamics adapt over time, whereas committees do not, arguing that “evolution wins in the long run.” Other community members have echoed related concerns.

A user on X, Naval, stated that third-party watchdogs introduce structural security flaws despite their independence. Another user, Darklight, argued that market-based systems tend towards plutocracy and may fail in preserving civil liberties. This governance debate comes as Zcash attracts the attention of the refurbished market.

Conclusion

This debate comes amid a significant rise in the price of Zcash, with data from BeInCrypto showing the token has risen more than 1,000% in the past three months, reaching a peak of $723 before dropping to its current level of around $448. The more than 20% drop in the past week demonstrates the high volatility within the crypto market.

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Reference

• BeInCrypto. Vitalik Buterin Issues Warning About Zcash Token Voting. Accessed on December 1, 2025