November 22, 2024

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Vitalik Buterin voices concerns over DAOs approving ETH staking pool operators

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Vitalik Buterin voices concerns over DAOs approving ETH staking pool operators

Vitalik Buterin, the co-founder of Ethereum, has expressed worries regarding decentralized autonomous organizations (DAOs) exerting a monopoly over the selection of node operators in liquidity staking pools.

In a September 30 blog

Buterin highlights that a possible approach to address this issue involves encouraging ecosystem participants to utilize a variety of liquid staking providers. 

He clarifies this would decrease the likelihood of any one provider becoming excessively large and posing a systemic risk.

“In the longer term, however, this is an unstable equilibrium, and there is peril in relying too much on moralistic pressure to solve problems.”

Magazine: Are DAOs overhyped and unworkable? Lessons from the front lines