Vitalik Buterin Proposes Hybrid City Model Merging Decentralization, Democracy, and Capitalism

Ethereum co-founder Vitalik Buterin has unveiled an intriguing vision for a new type of city, blending principles of democracy, capitalism, and decentralization. His concept, shared in a response on the social media platform Farcaster, resembles a decentralized autonomous organization (DAO) but incorporates taxation as a key element.

The discussion centered on the idea of “for-profit cities,” which evoke images of corporate-run municipalities like “Walmartopia” or “Teslaville.” However, Buterin’s vision treats city governance as a mix of public good and enterprise. When asked whether cities should operate as for-profit entities or public institutions, Buterin argued for a hybrid model.

“We want public infrastructure to serve all income levels effectively. We want cities to contribute positively to the nation and the world, guided by humanitarian values. Homelessness should not be solved by simply sending people away,” Buterin explained.

In his ideal city, citizens would gain more access to assets that provide them with governance rights. At the same time, landowners would face higher taxes but reduced influence over the city. Buterin believes this would align incentives toward the city’s overall success.

He emphasized that land value taxes could motivate governments to improve local public goods, which directly affect land value. Meanwhile, the actual improvements made on the land would remain in the hands of the local owners, who are best positioned to impact the land’s development.

Buterin’s proposed model mirrors the structure of a DAO but incorporates taxes and profit incentives, blending decentralized governance with elements of a capitalist framework. Politically, this would combine democratic engagement with economic incentives, maintaining a balance between collective responsibility and private ownership.