• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Ethereum Co-Founder Vitalik Buterin's Penalty Scheme for Decentralization Enhancement

user avatar

by Giorgi Kostiuk

2 years ago


An innovative proposal introduced by Ethereum's co-founder, Vitalik Buterin, aims to improve the platform's decentralization by implementing penalties for validators who fail simultaneously. This proposal, posted on the Ethereum Research forum on March 27, intends to incentivize decentralized staking by introducing more anti-correlation incentives. The focus is on penalizing validators controlled by a single entity that fail in unison, with harsher penalties compared to individual failures.

Buterin's idea is based on penalizing validators depending on how their failure rates differ from the norm. In case of multiple validators failing simultaneously, penalties would increase for each validator to deter significant stakers from causing widespread disruptions through correlated failures. This strategy could potentially create a more level playing field between large and small Ethereum stakers.

In addition to penalties, Buterin's proposal promotes separate infrastructures for each validator to encourage solo staking's economic viability compared to joining staking pools. There is also a suggestion to explore alternative penalty schemes and evaluate the effects of these measures on geographic and client decentralization within the Ethereum network.

Discussions around staking decentralization also highlight concerns about staking pools and services like Lido, which control a considerable portion of the total ETH supply staked. These dominant entities raise worries regarding centralization and the advantages they might have over individual stakers.

Despite the proposed measures, Buterin did not address the possibility of reducing the solo staking threshold of 32 Ether, which might pose a significant financial challenge for individual participants. This proposal arises amidst ongoing conversations in the Ethereum community about centralization risks and the necessity for mechanisms that ensure a more fair and decentralized network, particularly with the influence of services like Lido and concerns about potential cartelization.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Whale BitcoinOG Opens 900M Long Position, Boosting Market Confidence

chest

A significant long position by whale BitcoinOG on Hyperliquid is enhancing market confidence and retail trader interest despite existing risks.

user avatarNguyen Van Long

FLOKI's Challenges in Achieving Growth

chest

FLOKI is currently facing significant challenges in achieving the desired 100x growth due to its high market capitalization and increasing competition from other tokens.

user avatarJesper Sørensen

HYPE Price Bounces at 24 Support, Eyes Breakout

chest

HYPE cryptocurrency shows signs of recovery after bouncing off the 24 support level, with potential for higher prices if it breaks resistance at 26.

user avatarSatoshi Nakamura

Neuralink Raises $650 Million to Enhance BCI Technology

chest

Neuralink raised $650 million in June 2025 to enhance its brain-computer interface technology, aiming to serve over 1,000 patients by 2026.

user avatarRajesh Kumar

Market Dynamics as Ethereum Faces Governance Shifts

chest

Market Dynamics as Ethereum Faces Governance Shifts

user avatarLucas Weissmann

ZKP's Commitment to Structural Stability Enhances ROI Potential

chest

ZKP emphasizes structural stability to drive ROI, ensuring sustained network demand and reliable operations.

user avatarFilippo Romano

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.