Виталик Бутерин обрисовал важность независимых децентрализованных стейблкоинов для будущего крипторынка Translation: Vitalik Buterin outlined the importance of independent decentralized stablecoins for the future of the crypto market.

The crypto market requires more advanced decentralized stablecoins that can address various long-term issues such as inflation, according to Ethereum co-founder Vitalik Buterin.

The developer highlighted three main demands of the sector:

“Tracking the US dollar is effective in the short term, but I believe that a part of the sustainability concept should include independence from this price ticker as well. What if we experience hyperinflation in a 20-year outlook?” Buterin remarked.

In the absence of a secure oracle to hedge against protocol takeover, developers often inflate the token’s value to make an attack prohibitively expensive. However, to maintain a high value, the project must promise investors excessive profits, acquired through high fees. This renders the protocol’s usage unprofitable.

Buterin described this situation as a «deadlock,» since such systems lack «asymmetry of protection»—in this scenario, both the protocol’s attack and defense reduce to a «financial race.»

“This is one of the key reasons I consistently oppose financial management […]. And of course, this is one of the main reasons I do not plan to completely abandon DAOs,” he added.

In the context of staking, the programmer emphasized that even a few extra percentage points of APY negatively impact the coin. As potential solutions, he suggested:

The Ethereum co-founder reminded that stablecoins cannot be backed by a fixed amount of ETH since a sharp price drop would require the ability to rebalance.

It is worth noting that in January, Buterin compared Ethereum to BitTorrent and Linux in terms of scalability and reliability.