RAI Could Be an Activist For Minority LSDs: Vitalik Buterin

Ethereum founder Vitalik Buterin thinks RAI, the first stablecoin on the Reflexer platform, could be an activist for minority Liquid Staking Derivatives (LSDs). He also believes the rise of RAI could resolve Lido’s dominance in the LSD ecosystem. Lido controls over 30% of the entire LSDs in the crypto market.

Buterin expressed his opinion while participating in a discussion on the Reflexer Finance discord. According to the Ethereum founder, RAI’s activist governance may not need to go all the way. It would be enough if the RAI community does more activist governance to support staked ETH and intentionally accept only non-dominant forms of staked ETH.

In further explanation, Buterin noted that his present position detaches from a previous idea of the stablecoins ecosystem. He thinks that RAI can take on the minimalistic niche, where MakerDAO remains the leading project in the first niche. However, he believes if MakerDAO torpedoes itself in weird directions, then RAI could naturally move closer to the middle category.

One of RAI’s team members identified at Reza.eth on X (Twitter) that Buterin’s thoughts align with the plans of the project’s team. According to him, there is a need for more governance to support minority LSDs. Incidentally, it is necessary to reset the system via a global settlement to achieve more governance.

The RAI team member also acknowledged that Buterin’s comments arrived at an interesting time. It came a few days after the DAO submitted a proposal to Tally, a platform that powers on-chain protocols, treasuries, and public goods, to fund the creation of a global settlement user interface (UI).

Reza believes creating a global settlement UI is the first step in triggering a fair and smooth global settlement process. In his opinion, the team’s idea is to create a future where Reflexer Finance can be the change everyone wants to see and a movement that supports minority LSDs.