Vitalik reveals that Ethereum is now positioned against what crypto VCs actually want to fund

Source: Yellow Original Title: Vitalik reveals that Ethereum is now positioned against what crypto VCs really want to fund

Original Link: Ethereum (ETH), co-founder Vitalik Buterin, has outlined a vision for decentralized stablecoins that sharply contrasts with the approach favored by much of the crypto industry’s venture capital, positioning Ethereum as a long-term bet on monetary sovereignty rather than short-term financialization.

In a post responding to comments about Ethereum’s role in the broader crypto ecosystem, Buterin argued that the network is increasingly aligned against trends favored by many crypto investors, including custodial stablecoins, centralized DeFi structures, and yield-driven financial products.

Instead, he said Ethereum is “tripling down” on enabling sovereign individuals through systems designed to withstand political and monetary stress over decades.

Rethinking Stablecoins Beyond the Dollar

At the heart of Buterin’s comments was a call for better decentralized stablecoins.

While acknowledging that following the US dollar is acceptable in the short term, he questioned the long-term viability of tying decentralized money exclusively to a single national currency.

Looking decades ahead, Buterin said stablecoin systems should consider alternatives that remain credible even if the dollar experiences sustained inflation or a loss of trust.

He framed this not as a short-term market concern but as part of a broader vision of resilience against nation-state risks.

Oracle Capture and Governance Risks

Buterin also highlighted structural weaknesses in current stablecoin designs, particularly around oracle systems.

He warned that price oracles susceptible to capture by large capital flows create incentives for protocols to extract excessive value from users in self-defense.

He argued that this dynamic is closely linked to what he called “financialized governance,” where token-based control lacks a significant defensive asymmetry and thus relies on high levels of economic extraction to remain secure.

Buterin said this trade-off undermines decentralization and is a key reason he continues to push for improvements in DAO designs rather than abandoning them.

Staking Yield as a Structural Constraint

Another challenge Buterin described is the competition between staking yields and stablecoin design.

High staking returns, he said, make it difficult to build stable assets without imposing suboptimal outcomes on users.

He outlined several potential paths forward, including much lower staking yields, alternative staking categories with different risk profiles, or mechanisms that reconcile slashing risk with collateral usability, emphasizing that none are simple or cost-free.

Ethereum’s Contrarian Position

Overall, Buterin’s comments portray Ethereum as increasingly opposed to crypto models centered on custodial convenience, leveraged yield, and rapid monetization.

Rather than competing directly with banks or fintech platforms, he positioned Ethereum’s long-term value proposition on credible neutrality, decentralization, and monetary systems that can endure beyond current market cycles.