After the Wealth Effect Disappears, The Myth or Elegy of Decentralization
The article "After the Wealth Effect Disappears: The Myth or Elegy of Decentralization" examines the evolution of Ethereum and Bitcoin, arguing that both have strayed from their original decentralized ideals. While Ethereum shifted from PoW to PoS to enhance scalability and value capture (ETH), it sacrificed node decentralization and embraced centralized governance, despite retaining smart contracts. Bitcoin maintained minimal governance but failed to support smart contracts, limiting its utility beyond being "digital gold."
The author highlights how institutional adoption (e.g., BTC ETFs, DTCC’s blockchain migration) prioritizes long-term, low-risk gains, contrasting with retail’s speculative expectations. As centralized exchanges (CEXs) become less influential, activity migrates on-chain, but this shift may not yield the envisioned decentralized utopia. Stablecoins like USDT/USDC are increasingly replacing ETH as primary assets, further centralizing the ecosystem.
Ultimately, the piece critiques the compromise between decentralization and wealth generation, noting that Ethereum’s "middleman" role—embodied by Vitalik Buterin and ETH’s capital-driven model—has eroded its foundational principles. The conclusion suggests that both decentralization and wealth effect narratives are being overshadowed by pragmatic, institution-friendly financial computing.
marsbit12/13 05:45