Preserving Decentralization: Ethereum Staking Giants Pledge to Self-Limit Market Share

Several leading Ethereum liquid staking providers, including Rocket Pool, StakeWise, Stader Labs, Puffer Finance, and Diva Staking, are adopting a self-limiting strategy to own no more than 22% of the Ethereum staking market, thus working to avoid a potential increase in staking centralization. This move is in contrast to entities like Lido Finance, which advocates for growth and dismisses the self-limitation approach.

Ethereum’s Liquid Staking: Controversy Erupts over 22% Validator Cap Debate

Ethereum liquid staking providers, including Rocket Pool, StakeWise, Stader Labs, and Diva Staking, have agreed to a self-imposed limit of 22% ownership of validators to maintain Ethereum’s decentralization. Proposed by Ethereum core developer Superphiz, this limit is seen as a means to prioritize network health over profits, requiring at least four major entities to finalize the chain. However, Lido Finance, the leading Ethereum staking provider, opposes this limit.