Protocol and staking pool changes that could improve decentralization and reduce consensus overhead - HackMD

notes.ethereum.org · 2,775 words · saved by 1 readers

Special thanks to Mike Neuder, Justin Drake and others for feedback and review. See also: earlier posts on similar themes by Mike Neuder, Dankrad Feist and arixon.eth. The Ethereum status quo can be described as including a large share of emergent two-tiered staking. By two-tiered staking, I mean here a staking model where there are two classes of participants: This emergent two-tiered staking arises through the actions of a large share of stakers who participate in staking pools which offer liquid staking tokens (LSTs), eg. Rocket Pool and Lido. The status quo has two main flaws: This post will describe possible solutions to both of these issues. It will particularly take the following angle: suppose that we take it as a given that most capital is held by people who are not willing to personally run staking nodes in their current form, signing messages every slot and locking their deposits and subjecting them to slashing. What other role can they have that meaningfully contributes to

Protocol and staking pool changes that could improve decentralization and reduce consensus overhead - HackMD # Protocol and staking pool changes that could improve decentralization and reduce consensus overhead _Special thanks to Mike Neuder, Justin Drake and others for feedback and review. See also: earlier posts on similar themes by [Mike Neuder](https://notes.ethereum.org/@mikeneuder/goldilocks), [Dankrad Feist](https://notes.ethereum.org/bW2PeHdwRWmeYjCgCJJdVA) and [arixon.eth](https://mirror.xyz/arixon.eth/pE2nU_tSWeiTae2vSJ7a-tNK17kIkE_tqlpDf-neMPo)._ The Ethereum status quo can be descr

Protocol and staking pool changes that could improve decentralization and reduce consensus overhead - HackMD

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