• 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.

Other news

SpaceX Acquires xAI to Tackle AI Power Challenges

chest

SpaceX has acquired xAI, merging rocket launch services with AI development to tackle the limitations of Earth-based infrastructure.

user avatarDiego Alvarez

Starlink Revenue Expected to Fund xAI's Operations After Merger

chest

Starlink revenue is expected to support xAI's operations after its acquisition by SpaceX.

user avatarKenji Takahashi

BlockDAG Launch Dashboard Set to Go Live on February 2

chest

BlockDAG will launch a new dashboard on February 2, providing users with a fully integrated system for managing their investments and preparing for exchange access.

user avatarMaria Fernandez

Referral Strategies Become Key to Success in ZKP Auction Stage 2

chest

Referral strategies are crucial for success in the ZKP presale auction Stage 2 as token availability tightens.

user avatarRajesh Kumar

Stage 2 of ZKP Presale Auction Heightens Competition with Scarcity

chest

Stage 2 of the ZKP presale auction reduces daily token allocation, intensifying competition and emphasizing referral strategies.

user avatarLuis Flores

SPX6900 and Brett Gain Traction in the Meme Coin Market

chest

SPX6900 and Brett are gaining traction in the meme coin market with increased trading activity and community support.

user avatarGustavo Mendoza

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.