I resonate deeply with your points regarding the distinctions and values of anonymity and pseudonymity. While I agree that pseudonymity provides critical freedom and privacy, especially in our current landscape, highlighting the inherent tradeoffs is worth noting.

Pseudonymity indeed grants freedom, but it’s essential to acknowledge that it inherently limits trust, especially in contexts demanding accountability and legal certainty. A unique form of “sunk cost” is also tied to pseudonymous identities. Investing years into building a pseudonymous reputation can make transitioning back into a real-world identity complicated or costly.

Fedimint represents an exceptional example of this delicate balance. Users gain powerful privacy through pseudonymity, relying on federated trust rather than personal identity verification. Yet the federation guardians shoulder explicit accountability, sacrificing anonymity to foster trust and reliability within the system.