Vitalik Buterin proposes Ethereum upgrades for decentralisation
Vitalik Buterin, Ethereum’s (CRYPTO:ETH) co-founder, has suggested several upgrades aimed at maintaining decentralisation within the network.
In a recent essay titled "Possible Futures of the Ethereum Protocol, Part 3: The Scourge," Buterin outlined ways to mitigate the risks of centralisation in Ethereum’s Proof-of-Stake (PoS) mechanism.
The Scourge phase focuses on addressing centralisation in Ethereum's staking process.
Buterin identified key factors, such as block production centralisation, economic pressures, and the 32 ETH staking minimum, as contributors to centralisation risks.
He emphasised that these factors may lead to large stakers dominating the network while smaller participants are forced to join larger pools.
“One of the biggest risks to the Ethereum L1 is proof-of-stake centralising due to economic pressures.
If there are economies-of-scale in participating in core proof-of-stake mechanisms, this would naturally lead to large stakers dominating, and small stakers dropping out,” Buterin stated.
To counter these risks, Buterin proposed breaking up block production tasks, shifting transaction selection responsibilities to stakers.
He explained that by allowing stakers to choose transactions while builders handle the ordering process, the risk of centralisation can be reduced.
Additionally, Buterin suggested using solutions like Multiple Concurrent Proposers (MCP) and the BRAID system, which would spread block production across multiple entities, thus preventing any single entity from dominating the staking process.
Buterin also raised concerns about “over-staking,” as currently 30% of Ethereum’s total supply is staked.
He warned that excessive staking could drive more ETH holders toward centralised platforms.
To address this, he proposed adjusting Ethereum’s issuance curve so that staking rewards diminish when a certain staking threshold is exceeded.
At the time of writing, the Ethereum price was $2,749.19.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
From SpaceX to Anthropic, the market has new strategies for dealing with tech giants' IPOs
The market's response strategies to major listings are currently centered around "index inclusion expectations": the new regulations allow mega IPOs to be included in the six major indices within 15 days, triggering concentrated buying by passive funds. Investors are positioning themselves in advance and using options to hedge and amplify buying power. However, Anthropic has a free float of only about 6%; shares available for sale by employees on the first day and privately placed shares with no lock-up period may create supply pressure. On the other hand, index arbitrageurs are facing a rare opportunity.
Nvidia Q3 Earnings Preview: Revenue Expectations and Key Metrics to Watch
AI trading retreats and corporate profit growth boost European stocks! Four-day winning streak halted but still on track for biggest weekly gain since July
European stock markets had previously risen for four consecutive trading days and reached record highs, but this rally could not be sustained. The Stoxx Europe 600 Index has climbed 2.2% this week and is on track for its largest weekly gain since July.
Nebius (NBIS.US) Q3 Conference Call: CEO Says AI “Demand Is Real and Huge”, Expects Pre-tax Break-even by Q4 2027
Nebius Group (NBIS.US) will release its Q3 2026 financial results before the market opens on November 12 (US Eastern Time) and hold a conference call on the same day.
Crypto prices
More
