Vitalik Buterin, the co-founder of Ethereum, stands out as one of the most transparent and influential figures in the world of cryptocurrency. His on-chain wealth is visible for anyone to see, and his transactions often reflect his evolving interests and ideals. However, with great transparency comes significant scrutiny, and it must be quite uncomfortable being Vitalik Buterin—the famous co-creator of Ethereum, who is both the driving force and mascot of the second-largest cryptocurrency. Vitalik is incredibly wealthy and renowned, but the whole world can peer into his wallet.
The Challenge of Being Vitalik Buterin
Imagine having your financial life laid bare for all to see. Every transaction you make is scrutinized by speculators hoping to profit from your moves, and by journalists searching for the next big story. Spot on-chain shows that Vitalik has eight wallets containing a total of $746 million, with the vast majority in Ether (ETH) ($729 million) and the rest in USDC ($16 million). It’s likely he has other wallets, but these public wallets hold a significant portion of his wealth. Every move he makes is watched closely.
But what’s truly fascinating is how Vitalik uses his wealth. His transactions are not just financial; they are a window into his mind and ideals. Rarely do transactions and idealism intertwine so closely as they do in Vitalik’s wallet. It’s not just an account; it’s a manifesto.
Vitalik’s Turning Point
Recently, Vitalik transferred 400 ETH—approximately one million dollars—to the Railgun protocol. This isn’t the first time he has done this; about a year ago, he made a similar transfer to Railgun.
Railgun is a privacy protocol on Ethereum, a smart contract that, similar to the now-sanctioned Tornado Cash mixer, helps users anonymize their tokens. Tokens are burned, and new ones are created; a zero-knowledge proof demonstrates that tokens have been burned without revealing which ones. While there are differences between Railgun and Tornado Cash, the basic concept is the same, and the details are not the focus here.
Vitalik has long advocated for more privacy on the blockchain. He knows better than most what it means to have a transparent wallet and have the world watch every move he makes. In a long, autobiographical blog post, he spoke about the „end of my childhood.“ The date was February 23, 2022—a key moment in his life. “I still remember how I was filled with horror watching the TV in my Denver hotel room at 7:20 AM local time,” he recalls. Russia had sent tanks across the border and bombers to Kyiv. The state-sponsored mass murder by Russia marked a turning point not only for German Chancellor Olaf Scholz but also for Vitalik Buterin.
The next morning, he learned that the Ukrainian government was asking for crypto donations on Twitter. At first, he thought it must be a scam, possibly by the Russians, but soon realized it was genuine and tweeted about it. Then something happened that would change everything: „An hour later, a relative sent me a message saying I should no longer travel to Russia for my own safety.“
Vitalik Buterin experienced firsthand how uncomfortable financial transparency could be. He began using anonymization protocols to make anonymous donations, first through Tornado Cash and later through Railgun. Privacy, Vitalik emphasizes, is “normal,” by which he means it should be the norm, not the exception. He started to engage more deeply with technologies that could make Ethereum more private, such as stealth addresses, and used the weight of his name to bring these ideas to prominence.
A Second Vision for Crypto
But Vitalik’s turning point didn’t stop there. He also realized that his previously neutral, morally-free actions, driven solely by the growth of crypto, had a cost.
„Most of my decisions in Ethereum involved responding to the pressures and wishes of others. When I met Vladimir Putin in 2017, I didn’t contribute to arranging the meeting; instead, someone else suggested it, and I said ‘ok.’” It was okay because it was good for Ethereum, even if you are critical of Putin. Ok, because Ethereum was more likely to change Putin than Putin would change Ethereum. Now, five years later, „I finally realized that (i) I had become complicit in legitimizing a genocidal dictatorship, and (ii) I no longer had the luxury of sitting back in the crypto space and letting mystical ‘other people’ run the show.“
Rather than being a mascot of his creation, Vitalik is now searching for and formulating a „second vision for how the crypto space can develop to better meet the needs of the 21st century.“ He no longer wants to be swept along by the success of Ethereum but to actively shape it; no more compromising on ideals for the sake of market success. Instead, he wants to return to the roots, to the ideals.
Blockchains should protect people’s freedom. They should grant autonomy and privacy, dissolve the harmful dichotomy of „anonymous and untrustworthy“ or „fully verified,“ and create financial independence. Blockchains should live up to these ideals and promote the utopia of a better world, rather than risking slipping into a dystopia.
Defensive Acceleration
But Vitalik Buterin’s wallets reveal more than just his interest in privacy; they also show his engagement with „d/acc.“ When Vitalik thinks deeply, you can sometimes trace it in his wallet.
Recently, Vitalik purchased the ENS address „dacc.eth“ for around $500. This happened just a few days before he discussed the concept of „defensive accelerationism“ (d/acc) on Twitter Spaces (now X). The privacy that Railgun and other technologies enable is, in Vitalik’s world, part of something bigger—d/acc. He introduced the concept last November in a beautifully written but lengthy post titled „My Techno-Optimism.“
The foundation is „effective accelerationism“ (e/acc), the optimistic technological philosophy of „effective acceleration“: Technological progress has benefits, always more than disadvantages, so the more and faster, the better. Therefore, it is moral to accelerate it unconditionally as much as possible.
A World of Defensive Technologies
Vitalik distinguishes between defensive and offensive technologies. The former makes it easier to attack, in a broad sense, not just militarily, while the latter promotes defense.
„A world that fosters defense is, for many reasons, a better world,“ Vitalik concludes, „because fewer people die, less economic value is destroyed, and less is wasted on conflicts.“ In a world that promotes defense, „it is easier for healthy, open, and freedom-loving forms of government to survive,“ like Switzerland, which benefits from a natural defensive advantage due to the Alps.
This statement may be partially true, as seen in the case of Switzerland, but it is naive when taken absolutely. For example, the Middle Ages were a time of defense before advanced cannons ushered in an era of offense. Under the protection of their castles, barons could oppress the people, feuds devastated fields rather than fortresses, and cities were not stormed but worn down in agonizing sieges. It was not necessarily a „better world.“
The core of Vitalik’s theory is that we should accelerate defensive technologies as quickly as possible to be prepared when the acceleration of offensive technologies makes it necessary. The better digital defenses are, the less need there is to chase down hackers and spy on users. The better one can block other accounts on Twitter, identify fraud in browser apps, or collaborate, the less we have to think about censorship. The faster we develop vaccines, the less we have to monitor super-spreaders and implement lockdowns. It doesn’t always work, but often strong defensive technologies render the offensive unnecessary, and often they are exactly what preserves freedoms.
However, the strengthening of defense often comes with a price. For example, the fight against spam has led to an oligopoly of email providers. Many apps, like Twitter, block internet addresses from VPNs or Tor, and so on. The fight against abuse, just like the double-spending problem before Bitcoin, requires a central intermediary who exercises control.
Blockchains, Vitalik argues, allow for security without „being dependent on a centralized actor.“ Therefore, we should do everything possible to develop decentralized, defensive technologies based on the blockchain to address the offensive threats of the present. While Vitalik’s argument may be somewhat naive, it articulates an honorable and broad goal.
If you like my Content and want to support me then feel free to check out my Patreon! Every cent is much appreciated, thank you!
Disclaimer: This article is for entertainment and educational purposes only and should not be considered financial or investment advice. Always do your research and consult with a professional before making any financial decisions.