Hi HODLers and Ethereum lovers,
Even if ETH staking pool do not help enough the decentralization of the network as power is being concentrated into a few hands; this is still better than not participating in the ETH Proof of Stake system.
It also allows users with not enough ETH or not enough know-how to participate in the Ethereum security.
As of today, there are 422,000+ validators with $22.3bn worth of ETH staked on the Beacon chain.
Different ETH staking options
Split of these staked ETH:
- c.30% are controlled by Lido Finance
- 15% by Coinbase,
- 8% by Kraken,
- 7% by Binance
It means that these 4 centralized entities technically "control" or at least can influence 60% of the staked ETH.
... Not good...
I do not know how we could diversify these pools to get to at least 15-20 players controlling no more than 50% of the total.
I hope we get new companies/products that will allow this. But for now, users have tended to stake it where it is easier for them, therefore this is why 3 of the leading CEX are controlling more than 30%.
Does anyone know about an initiative being developed to protect Ethereum Decentralization?
Stay safe out there,