Ethereum co-founder Vitalik Buterin has expressed worries about decentralized autonomous organizations (DAOs) dominating the selection of node operators in liquid staking pools.
Vitalik Buterin Raised Concerns About DAO Governed Staking Pools
Ethereum co-founder Vitalik Buterin has expressed worries about decentralized autonomous organizations (DAOs) dominating the selection of node operators in liquid staking pools.
In the blog post, Buterin warned that as DAOs like Lido's gain control over validator funds through governance, it could expose large portions of the network to attacks if compromised.
He stated:
“To the credit of protocols like Lido, they have implemented safeguards against this, but one layer of defense may not be enough.”
He further explained that while Rocket Pool allows anyone to operate a node for a 8 ETH deposit, it risks a 51% attack on the network.
Buterin said restricting nodes is necessary to curb attackers, but spreading assets across multiple staking providers like Lido, Stakehound and Rocket Pool decreases systemic risk from any growing too large. In the long run, Buterin concluded that relying on moral pressure alone to solve issues poses problems.
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