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Vitalik supports DOGE's skepticism about the use of US government funds: please follow the venture capital model and allow small mistakes to exchange for big opportunities.
The government efficiency committee (DOGE), formed by Trump and Musk, previously questioned the US government's use of funds. Ethereum co-founder Vitalik Buterin also recently agreed with DOGE's views. He believes that if the government only avoids making mistakes on social media, it will miss out on greater development opportunities. Vitalik advocates that the government should adopt a venture capital (VC) model, willing to tolerate small mistakes and focus on carefully evaluating large-scale projects.
The US government spends a lot of unnecessary money
DOGE previously stated on Twitter that the US government's use of funds is quite funny, and listed some of the government's 'ridiculous' uses of funds, such as:
Purchase the copyright for the "green camouflage pattern" design worth 28 million US dollars for the uniforms of the Afghan National Army.
The NIH spent 5 million US dollars to help fashionistas with smoking addiction quit smoking.
A public expenditure of $510,000 to study how heroin affects the sexual behavior of Japanese quail?
Did the National Institutes of Health (NIH) spend 3 million dollars to observe hamsters fighting?
It costs $1.7 billion annually to maintain the Mosquito Pavilion.
Spending 1 million dollars to print official documents that no one wants to see
Spending $860,000 annually on warehouse management fees to maintain some unused waste.
Spend $500,000 to build a pancake house?
Spending over 8 hundred million dollars to promote the Super Bowl door to door.
Don't just fear making mistakes, focus on the potential of small-scale experiments
Vitalik pointed out that when governments use funds, a small percentage of their plans are often magnified for mistakes and then criticized on social media. However, Vitalik believes that mistakes like these account for a very small percentage of overall spending. If the government pursues "zero mistakes" excessively, it will not only abandon many high-reward innovation projects, but also perpetuate truly inefficient and seemingly "flashy" projects that cannot be reviewed.
Borrowing from the venture capital model to pursue high returns and avoid the sunk costs of large-scale projects
Vitalik advocates that governments should adopt a venture capital (VC) strategy for small public funding projects, which means allowing for mistakes in order to capture opportunities that could potentially have 1000 times the value. He gives the example that the venture capital industry is filled with many 'sunk cost' investments, but a few successful cases can have a huge impact. He believes that this model is also applicable to the allocation and management of public funds.
Vitalik emphasizes that the government should focus on large-scale funding plans, such as national infrastructure or major policies, to avoid unnecessary resource waste and long-term sunk costs. As for small-scale pilot projects, the government should accept a certain degree of failure risk and focus on stimulating innovative development.
(Trump nominates Musk and Ramaswamy to lead the 'Government Efficiency Department DOGE' to reshape the government structure)
This article Vitalik agrees with DOGE's questioning of the US government's use of funds: please follow the venture capital model, allowing small mistakes to exchange for big opportunities first appeared in Chain News ABMedia.