Ethereum Staking Service Providers Commit to Self-Limiting Validators at 22%

Anna Martynova

The five Ethereum liquid staking providers have either introduced or are working on introducing a self-limiting rule whereby they promise not to own more than 22% of the Ethereum staking market, which is seen as a move to ensure the decentralization of the Ethereum network remains.

Among the Ethereum staking providers that have committed to or are working towards enforcing the self-limiting rule include Rocket Pool, StakeWise, Stader Labs, and Diva Stting, according to Ethereum core developer Superphiz. Puffer Finance, another liquid staking service, has also announced its commitment to self-limit.

Superphiz explained that the services chose the 22% limit to increase the number of large organizations needed to distort data on the network. According to him, at least 66% of the blockchain validators must reach a consensus in order to change the information stored on the blockchain. According to Dune Analytics, Lido currently dominates the Ethereum staking market, accounting for 32.4% of all staking Ether, while the next organization, Coinbase, has only 8.7% of the market.

Image: Edubourse

Source: ethereum.today