/Heroglyph

Incentives For Transforming Ethereum Validator Dynamics

Incentives to transforming Ethereum validator dynamics

We miss the fair crypto assets and distribution mechanisms such as Bitcoin [1] and Ethereum that moved away from Proof-Of-Work [2]. While we agree that it was probably a correct decision for Ethereum to move to an energy-efficient and sustainable Proof-Of-Stake [3] in or- der to protect the planet [4], which in turn enabled scalability and wider adaptation, we want to bring attention to the fact that proliferation of liquid staking protocols that make it easier for individuals to participate in staking (which is generally seen as a positive development for decen- tralization), may concentrate control in the hands of a few, which could potentially undermine the decentralized nature of the network. Likewise, the extra volume in blockspace is filled with speculation and unfair dis- tribution of assets (aka meme coins, airdrops).