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September 26, 2023

Ethereum Co-founder Vitalik Buterin Shares Insights on Sam Bankman-Fried’s Reputation

-Based PolkaDot Governance Model In a recent tweet, Ethereum co-founder Vitalik Buterin shared his insights on Sam Bankman-Fried’s reputation-based PolkaDot governance model. These insights are meant to provide guidance for others looking to build and adopt decentralized autonomous organization governance models. Buterin explains how the PolkaDot governance model is composed of multiple tiers of groupings of stakeholders for a collective decision-making process. Each tier has its own form of voting and resources and is based on an individual’s reputation within their respective tier. Buterin points out that the system is designed in a way where “small decisions can be made quickly and without paralyzing progress," but also allows for larger decisions to be made more slowly and with more consideration from all stakeholders. He gives an example of the “Pandora Voting” system, which gives each tier a voice in taking larger decisions. Buterin warns that reputation-based models are not without their potential pitfalls. For example, he notes that if a voting system overvalues one’s reputation over other aspects, it could lead to biases and give too much sway to certain stakeholder groups. Additionally, the difficulty of sustaining the reputation of the individual stakeholders could result in difficulty in interpreting and trusting the decisions of the collective. Overall, Buterin concludes that the reputation-based model is a promising way to move forward with decentralized autonomous organization governance, but cautions that it is important to understand the nuances of the system thoroughly. With more research and development, it is likely that more advanced versions of the model will come to light.