Ethereum co-founder Vitalik Buterin has proposed several upgrades to Ethereum’s Proof-of-Stake (PoS) system aimed at preventing centralization and ensuring the network’s long-term security. In a new blog post, Buterin outlined key challenges facing Ethereum as it grows, particularly the risk of large stakers dominating the network.

Addressing Staking Centralization Risks

Buterin emphasized the need to address centralization in Ethereum’s staking process, citing the 32 ETH minimum stake requirement and economies of scale that favor large stakers. He proposed changes to the block production process, such as breaking up tasks between stakers and builders. This would distribute power more evenly and lower the barriers to entry for smaller participants.

Over-Staking Concerns and Solutions

Buterin also warned about the risks of over-staking, which could centralize control in the hands of a few major players. To mitigate this, he suggested adjusting Ethereum’s issuance curve to limit staking rewards when the total amount of staked ETH exceeds a certain threshold. These changes aim to protect Ethereum’s decentralization as the network continues to scale.
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