Ethereum co-founder Vitalik Buterin has issued a stark warning about the risks of concentrated power in the digital age, arguing that decentralization alone is insufficient to prevent societal crises. In a new essay titled "Balance of Power," Buterin contends that modern technology has removed the natural limits—such as distance and coordination costs—that once kept power in check, enabling governments, corporations, and online communities to scale and exert control faster than ever before.
Buterin identifies three key power centers, or "corners of a triangle," that society both likes and dislikes. The first is government, where people appreciate institutions like police and courts but fear arbitrary restrictions on speech and thought. He asserts that governments possess the power to ruin society "far worse than anything crypto sellers could ever do." The second corner is business, where people enjoy products and services but distrust companies that prioritize profit over societal good once they become powerful. The third is the "Big Mob," representing civil society, which people value for its independence (e.g., charities, Wikipedia) but fear when it leads to mob justice or historical events like the Taiping Rebellion.
To achieve a healthy balance, Buterin advocates for a "pluralist morality" and high diffusion of power. He proposes that systems should be designed so that no single group can dominate outcomes, even at large scale. This involves implementing open standards, adversarial interoperability, and governance structures that limit unilateral control. "The government should act like a game, not like a player," he writes, a principle he applies to digital systems.
Buterin points to Ethereum's own staking ecosystem as a practical example. He highlights Lido, a decentralized staking pool that controls approximately 24% of all staked ETH. Despite its significant market share, Buterin argues it poses less risk because it is not a single actor. Instead, Lido operates as a decentralized autonomous organization (DAO) with about a dozen operators and includes governance mechanisms that allow staked ETH holders to veto decisions. This structure is presented as a model for diffusing power.
The essay concludes with a direct challenge to Web3 builders: crypto projects must plan to avoid becoming too powerful. Buterin urges a shift in focus from mere growth and revenue to designing systems that actively prevent the concentration of power, suggesting the next phase of crypto depends less on speed and more on achieving this critical balance.
