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Top Ethereum Staking Pools. Can we avoid centralization?

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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

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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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