At least five Ethereum liquid staking providers have either imposed or are working to impose a self-limit rule in which they promise not to own more than 22% of the Ethereum staking market \u2014 seen as a move to ensure the Ethereum network remains decentralized.<\/p>\n
Among the Ethereum staking providers either already committed or are working to commit to the self-limit rule include Rocket Pool, <\/a>StakeWise,<\/a> Stader Labs<\/a> and Diva Staking,<\/a> according to Ethereum core developer Superphiz. <\/p>\n Puffer Finance, another liquid staking service, also announced<\/a> its commitment to the self-limit.\u00a0<\/p>\n These providers are committed (or are in the process of committing) to self-limit to <22% of Ethereum validators. This is how our chain will be successful: Coordination above greed. Cooperation instead of winner-take-all.@Rocket_Pool<\/a> @stakewise_io<\/a> @staderlabs<\/a> @divastaking<\/a><\/p>\n \u2014 superphiz.eth ️ (@superphiz) August 30, 2023<\/a><\/p><\/blockquote>\n The proposal presumably aims to address concerns of Ethereum staking becoming increasingly centralized. <\/a><\/p>\n As to why the self-limit was proposed at 22%, Superphiz explained<\/a> that because 66% of validators need to agree on the state of Ethereum, setting the limit below 22% means at least four major entities must collude in order for the chain to reach finalization. <\/p>\n Finality is the point where transactions on a blockchain are considered immutable, supposedly ensuring that transactions within a block cannot be altered.<\/p>\n The idea was proposed<\/a> by Superphiz in May 2022 when he questioned whether a staking pool would be willing to put the health of the chain before its own profits.<\/p>\n Interestingly, the largest Ethereum liquid staking provider, Lido Finance,<\/a> voted<\/a> by a 99.81% majority not to self-limit back in June.<\/p>\n \u201cThey have expressed an intention to control the majority of validators on the beacon chain,\u201d Superphiz said<\/a> in an Aug. 31 post.<\/p>\n Lido currently dominates the Ethereum staking market,<\/a> accounting 32.4% of all staked Ether, while the next entity, Coinbase, accounts for only 8.7% of the market, according<\/a> to data from Dune Analytics.<\/p>\n One industry pundit, \u201cMippo,\u201d explained<\/a> on Aug. 31 that the self-limit proposal has nothing to do with \u201cEthereum alignment\u201d \u2014 a principle understood to enable credible neutrality and permissionless innovation on Ethereum.<\/p>\n Mippo claimed those trying to push the proposal wouldn\u2019t make way if they were in Lido\u2019s position.<\/p>\n Related: <\/em><\/strong>Ethereum is about to get crushed by liquid staking tokens<\/em><\/strong><\/a><\/p>\n \u201cEveryone is doing the economically selfish and rational thing here,\u201d Mippo concluded.<\/p>\n Yeah because they have way less market share than that now\u2026 easy to chirp from the cheap seats.<\/p>\n This has nothing to do with \u201cEthereum alignment.\u201d None of these teams would self limit were they in Lido\u2019s place.<\/p>\n Everyone is doing the economically selfish and rational thing\u2026<\/p>\n \u2014 Mippo (@MikeIppolito_) August 31, 2023<\/a><\/p><\/blockquote>\n \u201cFolks in the ETH community should not shame more user-friendly solutions as greedy products,\u201d said<\/a> another observer.<\/p>\n However, others were more wary of the potential centralization<\/a> issues at hand, describing<\/a> Lido\u2019s market share dominance as \u201cdisgusting and selfish.\u201d<\/p>\n Magazine: <\/em><\/strong>DeFi Dad, Hall of Flame: Ethereum is \u2018woefully undervalued\u2019 but growing more powerful<\/em><\/strong><\/a><\/p>\n<\/div>\n\n
![](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-09\/1bb705ec-bfe6-4dee-b430-7b59243b403f.png\")
![](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-09\/ec017275-f78b-498e-9e7d-8aa84c73808e.png\")
Who\u2019s in the right? Mixed reactions from the Ethereum community <\/h3>\n
\n