In the twisted realm of Ethereum staking, where power and profit reign supreme, a glimmer of hope emerges. A self-limit rule, a feeble attempt to preserve the fragile concept of decentralization, is being imposed by five Ethereum liquid staking providers. They pledge not to own more than 22% of the market, a feeble gesture in the face of impending centralization.
But why 22%? The answer lies in the dark corners of Ethereum’s inner workings. You see, in order for the chain to reach finalization, a whopping 66% of validators must agree on its state. By setting the self-limit below 22%, at least four major entities must conspire and collude to achieve this finality. It’s a delicate dance of power and control, where the fate of transactions hangs in the balance.
This audacious proposal was put forth by Superphiz, an Ethereum core developer, who dared to question the motives of staking pools. Would they prioritize the health of the chain over their own insatiable thirst for profits? The largest player in this twisted game, Lido Finance, answered with a resounding no. They voted against self-limiting, expressing their intention to dominate the majority of validators on the beacon chain.
The Ethereum community is divided, as always. Some see this self-limit rule as nothing more than a facade, a feeble attempt to mask their own greed. Others fear the centralization that looms on the horizon, disgusted by Lido’s overwhelming market share. It’s a battle between self-interest and the greater good, with no clear winner in sight.
In summary:
– Five Ethereum liquid staking providers are imposing a self-limit rule not to own more than 22% of the market.
– The goal is to prevent Ethereum staking from becoming increasingly centralized.
– Setting the limit below 22% ensures that at least four major entities must collude for the chain to reach finalization.
– Lido Finance, the largest player, voted against self-limiting and intends to control the majority of validators.
– The Ethereum community is divided, with some criticizing the self-limit rule as a facade and others concerned about centralization.
