In his recent appeal to the crypto community, Vitalik Buterin has urged crypto adherents and innovators to move towards copyleft open-source licenses since the current rise in concentration of power in the tech industry and the blockchain sphere necessitates the use of legal channels that would ensure the protection of collaboration. Ethereum co-founder, an early advocate of permissive license (MIT and CC0) models, now explains that they are no longer sufficient in such a secretive and competitive environment.
Buterin, however, pointed out that copyleft licensing systems guarantee that those who want to make reductions on community-built software do not get away with it and that fairness and the innovation of decentralized systems are maintained, especially in the long term.
Shift in Licensing Philosophy Reflects Changing Industry Dynamics
Buterin appreciated that he had previously advocated open and unlimited licensing to the point that his blog had an ultra-permissive license (WTFPL). But he now finds the need to have more formalized rules that guard the ability of strong actors to steal the open-source code without sharing what they have improved.
According to his arguments, the culture in crypto has gradually changed to self-interest as most projects opt to have their code confidential. On his part, he said that this change compromises the collaborative spirit that initially characterized the development of blockchain.
Copyleft licenses provide a solution. Derivative works must be open source, too, establishing legal equivalence between developers. Unlike permissive models based on goodwill, copyleft provides protection against monopolization that can be enforced.
Copyleft as a Tool to Balance Economic Power
Citing the economist Glen Weyl, Buterin discussed his theories on how actors in superlinear economies are likely to create disproportionate returns. He warned that the result of this dynamic is a structural imbalance, whereby well-financed companies can solely take control, with nothing to permit anything back to the neighborhood that enabled their success. He suggested some decentralized forms of law to offset these effects, e.g., copyleft licenses.
He asserted that such a model had the potential to reproduce the type of regulatory results observed in governmental activities within various countries, including Europe with its technology-sharing requirements and the United States with its non-compete clauses regulation. With the help of Buterin, the objective is to defend innovation without having centralized regulation.
Permissive Licenses Still Have Strategic Uses
Although Buterin is usually a supporter of copyleft, he did not deny the usefulness of permissive licenses in certain circumstances. Their limited constraints can also speed the uptake and spread of newer technologies in situations where the primary concern is their availability to many people.
Nevertheless, he emphasized the strong necessity of protecting common efforts in the modern crypto space, which prevails over free usage advantages. He asked developers to think long-term about their licensing deals and make them align with the open collaboration strategy and fair competition.