Ethereum co-founder Vitalik Buterin presents 'The Scourge' — an initiative to combat block centralization and challenges with liquid staking providers.

Buterin's Vision: 'The Scourge'

Vitalik Buterin announced a new initiative 'The Scourge' aimed at tackling the increasing centralization in Ethereum's block construction and growing influence of liquid staking providers. His plan includes a two-tier staking system, capping penalties for participants at 12.5%, and giving more control over transaction selection.

Warnings and Current State

Ethereum researcher Toni Wahrstätter raised concerns about block production centralization. He noted that two block builders, Beaverbuild and Titan Builder, have produced 88.7% of all blocks in the last two weeks. This trend is partly due to the expansion of private order flows, which reduces competition and threatens decentralization.

Industry Reactions and Doubts

Buterin's proposal received mixed responses. Many support the changes, including Mario Nawfal, who believes it could enhance decentralization. However, skeptics like Dr. Jasper argue that reducing inflation might negatively impact solo stakers.

Vitalik Buterin's new proposal remains a hot topic in the Ethereum community, meeting both support and criticism. Decentralization and network stability continue to be top priorities.