Vitalik Buterin warns that Zcash should not adopt token-based governance.

Ethereum co-founder, Vitalik Buterin, expressed concerns about the potential for Zcash to adopt a token-based governance mechanism. He believes that using token voting for decision-making is imperfect and could undermine core principles, especially privacy.

Buterin emphasized that privacy, a crucial foundation of Zcash, becomes particularly vulnerable when governance decisions depend on the “average token holder,” who may not share the same goals as the core values of the network. He warned that token voting could undermine the integrity of the project, prioritizing short-term interests over long-term value. In comparison, he argued that the current governance model of Zcash better protects the core values.