Ethereum Founder Vitalik Buterin Discusses ETH Staking Changes

Ethereum co-founder Vitalik Buterin published a blog post this week outlining his views on incorporating various ancillary protocols directly into the blockchain’s base layer code.

In the post, Buterin specifically discussed account abstraction, zero-knowledge EVM engines, private transaction pools, code precompiles, and liquid staking. He favored tightly integrating some protocols, like ERC-4337 account abstraction, but adopting others, like mempools, requires more discretion.

Buterin noted that each integration proposal involves balancing centralization risks, development flexibility, and performance advantages. He concluded that protocol changes must evaluate these factors on a case-by-case basis as priorities shift over time.

Vitalik Buterin raised concerns about liquid staking concentration

The co-founder also expressed concerns about the concentration of liquid staking in Ethereum’s proof-of-stake model. He highlighted that leading providers Lido and Rocket Pool collectively represent over 32% of the staked ETH supply.

While acknowledging safeguards adopted by dominant liquid staking firms, Buterin suggested further decentralization mechanisms could strengthen network security. Rather than relying solely on ethical pressures, he proposed ideas like protocol tweaks to diversify staking participation.

Buterin’s viewpoints provide valuable insights into the Ethereum developer community’s assessment of potential upgrades to the network’s architecture. With the vision of decentralization, Buterin seeks to bring in notable alterations to the Ethereum network.