Top Ethereum Staking Pools. Can we avoid centralization?
Hi HODLers and Ethereum lovers,
Even if ETH staking pool do not help enough the decentralization of the network as power is being concentrated into a few hands; this is still better than not participating in the ETH Proof of Stake system.
It also allows users with not enough ETH or not enough know-how to participate in the Ethereum security.
As of today, there are 422,000+ validators with $22.3bn worth of ETH staked on the Beacon chain.
Different ETH staking options
Split of these staked ETH:
- c.30% are controlled by Lido Finance
- 15% by Coinbase,
- 8% by Kraken,
- 7% by Binance
It means that these 4 centralized entities technically "control" or at least can influence 60% of the staked ETH.
... Not good...
I do not know how we could diversify these pools to get to at least 15-20 players controlling no more than 50% of the total.
I hope we get new companies/products that will allow this. But for now, users have tended to stake it where it is easier for them, therefore this is why 3 of the leading CEX are controlling more than 30%.
Does anyone know about an initiative being developed to protect Ethereum Decentralization?
Stay safe out there,
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