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In a Twitter/X post by Vitalik Buterin, the founder of Ethereum argues that a "financialized pseudonymous society might not be feasible as there might be the possibility of collusion as outlined in his blog post.
I don't think the "anonymous society" or even "financialized pseudonymous society" thing actually works though.
— vitalik.eth (@VitalikButerin) August 21, 2024
Collusion issues are unresolvable: https://t.co/JxAtokMlF6
A more multidimensional notion of identity (hence, with "soulbound" features) seems necessary; if you don't…
"Finance can be viewed as a set of patterns that naturally emerge in many kinds of systems that do not attempt to prevent collusion. Any system which claims to be non-finance, but does not actually make an effort to prevent collusion, will eventually acquire the characteristics of finance, if not something worse" said Vitalik.
He argues that a more multidimensional form of identity with "Souldbound" feature is required or otherwise even the most stable governance structure will fall to governance attacks as witnessed by a few DAOs.
Recently, a group named the 'Golden Boys' passed a proposal after 3 failed attempts to direct $24 million in COMP tokens to a yield-bearing protocol called goldCOMP, giving COMP token holders passive income.
Industry participants like Wintermute are concerned that such actions can be deemed as a governance attack on the DAO. Such an attack could also set a precedent for the industry, potentially drawing more attacks in the near term given how lucrative they are.
Buterin ended the post by stating that anonymity is a check and balance and it can only exist for a certain portion of participants in the cycle. Running the whole crypto cycle full of anonymous individuals is equal to running a society on perma-rebellion energy and is not ideal as there are risks that have yet to be addressed.
