The post Vitalik Buterin Outlines Future of On-Chain Governance in Two-Layer Structure appeared on BitcoinEthereumNews.com.

TLDR Vitalik Buterin proposes a two-layer governance structure combining prediction markets and decentralized preference-setting systems. The execution layer relies on open markets to ensure accountability through financial incentives and transparent participation. The second layer must avoid token-based voting to prevent 51% control and ensure pluralistic, fair decision-making. Anonymous voting tools like MACI are recommended to reduce collusion and protect voter privacy. This structure separates execution from judgment, enhancing resilience and fairness in on-chain governance systems. Ethereum co-founder Vitalik Buterin shared a new direction for on-chain mechanism design, proposing a clear two-layer governance structure. He described a combination of a market-driven execution layer and a decentralized preference layer. This model aims to balance financial incentives with fair, anonymous judgment systems that resist centralized control. Execution Layer Will Emphasize Accountability Through Markets In his post on X, Vitalik Buterin emphasized that future systems will rely on open prediction markets to execute decisions transparently and competitively. He stated, “If you make good decisions, you win money; if you make bad decisions, you lose money.” This ensures that accountability becomes an inherent part of decentralized execution. I actually don’t think it’s complicated. IMO the future of onchain mechanism design is mostly going to fit into one pattern: [something that looks like a prediction market] -> [something that looks like a capture-resistant, non-financialized preference-setting gadget] In other… https://t.co/VutSyEI8Fd — vitalik.eth (@VitalikButerin) February 2, 2026  The proposed first layer functions like a prediction market, where anyone can participate without restriction, and outcomes remain financially driven. According to Buterin, this model supports open participation and rewards decision-making accuracy with measurable results. He called it “the correct way to do a decentralized executive.” In some cases, however, this layer may rely on centralized executives that remain replaceable and are still judged by a second layer. Buterin added, “Sometimes…

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Filed under: News - @ February 2, 2026 8:26 am