Matter Labs CEO Alex Gluchowski has proposed a hierarchical legal system within the Ethereum network that mirrors real-world structures.
In a September 2 post on It would eliminate the need to use traditional legal options or lawyers.
The Genesis of Ethereum’s Supreme Court
Gluchowski emphasized that the primary role of this system would be to protect protocols from external political interference. He believes it would be a powerful deterrent mechanism, cementing Ethereum’s status as a formidable network state.
Gluchowski elaborated on the concept, explaining that a tiered system of on-chain courts would manage disputes and emergency upgrades. The culmination of this system would be an Ethereum Layer-1 soft fork, also known as the ‘Court of Final Appeal’.
Each protocol would run itself in this structure, with regular and emergency upgrade mechanisms. In addition, a specific contract would be designated to initiate an appeals process.
During an emergency upgrade, an appeal period would be opened, allowing any user to file an appeal to a higher court, albeit after posting a predetermined deposit amount. The hierarchical structure of the courts would be clearly defined, with the Ethereum Supreme Court being the ultimate remedy for appellants.
Current solutions and their limitations
Gluchowski illustrated that protocols like Aave and Uniswap could potentially resolve disputes in courts called CourtUnchained or JusticeDAO. Following a ruling from these courts, parties would have the option to escalate the matter to the Ethereum Supreme Court.
However, Gluchowski admitted that the success of this on-chain legal system depends on a robust social consensus. He acknowledged that the process would be costly as he ensured that only cases of significant magnitude would be submitted to it. He mentioned cases that would require such attention, including bugs in major protocols such as Uniswap or a DeFi protocol that pose a systemic risk.
While Gluchowski acknowledged the existence of several current solutions to address such disputes, he argued that their effectiveness is limited. He mentioned the inadequacy of time-bound features on smart contracts during emergencies and the potential risks of introducing a Security Council.
“A security council could only temporarily freeze the contract, which required symbolic approval from the board for an emergency upgrade. But now a malicious majority of under-collateralized stakers could pull off a malicious takeover upgrade and steal all the assets.”
Alex Gluchowski, co-founder and CEO of Matter Labs.
In conclusion, Gluchowski announced that he, along with his team at zkSync, a layer-2 scaling solution developed by Matter Labs, is willing to financially support the research into this latest proposal, signaling a promising step towards a more autonomous and secure future for the Ethereum network.