Vitalik Buterin, Ethereum's co-founder, has hit back at critics. They claim he "doesn't care" about decentralized finance (DeFi). The backlash erupted over the weekend.
Kain Warwick, yield farming pioneer, sparked the debate. He appeared on a crypto talk show on August 23. Warwick voiced frustration with the Ethereum Foundation's (EF) recognition of DeFi.
"One of the most critical things that he's gotten wrong over the last five years is the importance of DeFi," Warwick said. He loves Vitalik but disagrees with his DeFi stance.
Warwick claimed Buterin's language equates to "stop doing DeFi". This has irked the DeFi community. "Stop discouraging the main use case of the chain," he stressed.
The criticism spread on social media. One user argued that Ethereum's value and DeFi are inseparable.
Buterin broke his silence. He responded to a post questioning his support for USDC over DeFi.
In his defense, Buterin clarified his views. He wants useful and sustainable applications. They should uphold permissionlessness and decentralization.
"I think DEXes are great, and I use them every week," Buterin stated. He praised decentralized stablecoins and prediction markets. USDC? Less great, but practical.
Buterin's not keen on unsustainable projects. He felt "no excitement" for the 2021 liquidity farming craze. It relied on temporary token issuances.
The debate coincided with a large Ethereum transfer. The EF moved about 35,000 ETH ($96 million) to Kraken. It's just "treasury management", they say.
This DeFi drama shows Ethereum's growing pains. Balancing innovation and sustainability isn't easy.