Vitalik Buterin contemplates Ethereum staking changes in blog post

Quick Take

  • Vitalik Buterin, co-founder of Ethereum, mulled changes to Ethereum staking that could decrease centralization in a blog post.
  • The post also discusses the tradeoffs of adding certain protocols to Ethereum’s base layer versus building them “on top.

Vitalik Buterin, co-founder of Ethereum, has shared a blog post outlining his opinion on adding certain protocols to Ethereum’s code versus keeping them “on top” of the blockchain. 

The protocols Buterin discussed include account abstraction protocol ERC-4337, ZK-EVMs, private mempools, code precompiles, and liquid staking. Buterin came out more strongly in favor of ‘enshrining’ some protocols to Ethereum’s code, like ERC-4337, than others, like private mempools, but concludes that each presents “a complicated tradeoff” that will “continue to evolve over time.”

Buterin also expressed concerns toward the concentration of Ethereum’s liquid staking providers. The liquid staking pool Lido currently controls over 32% of staked ether, although this is spread across a variety of different validators. Buterin said that Lido and Rocket Pool, two of the top providers, each have different risks and noted that they have some safety mechanisms in place — although these may not be enough.


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Rather than relying on “moralistic pressure” to encourage using a more diverse set of staking providers, Buterin in his post contemplates changes to Ethereum’s protocol that would further decentralize liquid staking. This could include tweaking liquid staking provider RocketPool’s approach or giving a randomly sampled committee of small stakers extra governance powers. 

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About Author

Zack Abrams is a writer and editor based in Brooklyn, New York. Before coming to The Block, he was the Head Writer at Coinage, a Web3 media outlet covering the biggest stories in Web3. The story he co-reported on Do Kwon won a 2022 Best in Business Journalism award from SABEW. Other projects included a deep dive into SBF's defense based on exclusive documents and unveiling the identity of the hacker behind one of 2023's biggest crypto hacks — so far. He can be reached via X @zackdabrams or email, [email protected].


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