Vitalik Buterin Proposes Merging DAOs and Prediction Markets to Support Creators

Vitalik Buterin proposes merging DAOs and prediction markets to support creators.

Ethereum co-founder Vitalik Buterin has introduced a novel model for incentivising content creators, based on a fusion of DAOs and prediction market mechanics.

How I would do creator coins

We’ve seen about 10 years of people trying to do content incentivization in crypto, from early-stage platforms like Bihu and Steemit, to BitClout in 2021, to Zora, to tipping features inside of decentralized social, and more. So far, I think we have…

— vitalik.eth (@VitalikButerin) February 1, 2026

“The key difference between ‘creator incentivization’ in the 2000s and today is that back then, the main issue was a lack of content per se. Now there’s an abundance of content, and AI can generate an entire metaverse for about $10. The problem is quality. Therefore, your goal is not to incentivize creation, but to identify good content,” he wrote.

As a solution, Buterin proposed a model where users issue tokens and apply to join thematic, curated DAOs. Members of such organisations would decide which materials to accept.

“The model to follow is Protocol Guild: there are N members who can (anonymously) vote to admit new members and expel existing ones. If N exceeds ~200, consider automatic splitting,” the programmer explained.

This model incorporates prediction markets: participants place bets on which authors or content the system will approve. They act not as drivers of popularity but as “predictors” helping to discover talent.

For example, the Ethereum co-founder cited the platform Substack, which manually selects and supports authors.

“Their launch process was very involved: they deliberately invited quality creators to the platform, guided by a clear vision of the intellectual environment they wanted to create, even providing selected authors with guaranteed income,” he noted.

After joining a DAO, the organisation can buy back and burn some of the content creator’s tokens. This would reduce the overall supply and create scarcity, potentially increasing the asset’s value. The rise in price would be a direct reward for the content creator.

A New On-Chain Mechanism

The community supported the concept but pointed out the complexity of implementation. Buterin countered, noting that future on-chain mechanisms will generally be built on a two-tier structure, separating responsibility for execution and preference formation.

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 programmer first highlighted the execution layer — an open structure resembling prediction markets. It maximises accountability: anyone can participate, correct decisions yield profits, and mistakes lead to losses.

Buterin described the market as the best tool for creating “decentralised executive power” in a permissionless environment. In some cases, this layer may be centralised but must allow for replacement.

The second layer is the preference-setting layer, which is decentralised and capture-resistant. Its key aim is to create an environment driven by intrinsic motivation rather than financial gain.

This level should not be token-oriented, as token holders do not represent a plurality of opinions, and coins can be bought up for a 51% attack. Voting should be anonymous and collusion-resistant (e.g., via MACI). The layer is responsible for forming preferences and evaluating the work of the execution layer.

“The clear separation into these two layers — (i) what performs execution, (ii) what sets preferences and judges the executor(s) — is the optimal approach,” Buterin emphasised.

Back in January, the Ethereum co-founder criticised existing DAOs and called for their reform.