The implementation of the 22% self-limit rule by several Ethereum staking providers aims to prevent the network from becoming centralized. This rule ensures that at least four major entities would need to collude in order for the chain to reach finalization, maintaining decentralization. Providers such as Rocket Pool, StakeWise, Stader Labs, Diva Staking, and Puffer Finance have committed or are in the process of committing to this self-limit. However, the largest provider, Lido Finance, voted against self-limiting, expressing an intention to control the majority of validators on the beacon chain. Lido currently dominates the Ethereum staking market with 32.4% of all staked Ether. The Ethereum community has mixed reactions to the self-limit proposal, with some arguing for more user-friendly solutions and others expressing concerns about centralization. Overall, the self-limit rule aims to address centralization issues and maintain the decentralized nature of the Ethereum network.
Summary:
– Several Ethereum staking providers are implementing a 22% self-limit rule to prevent centralization.
– Providers such as Rocket Pool, StakeWise, Stader Labs, Diva Staking, and Puffer Finance have committed or are in the process of committing to this rule.
– The largest provider, Lido Finance, voted against self-limiting and intends to control the majority of validators on the beacon chain.
– Lido currently dominates the Ethereum staking market with 32.4% of all staked Ether.
– The Ethereum community has mixed reactions to the self-limit proposal, with some supporting user-friendly solutions and others expressing concerns about centralization.