NewsletterJust-In: Lido Community Opposes To Limit Ethereum Staking, Here’s Why
The Lido community has voted to against the governance proposal limiting Ethereum staking on the Lido liquid staking protocol. The proposal has received 99% votes in opposition to self-limiting the percentage of Ethereum that can be staked.
Lido Community Votes Against Proposal to Limit Ethereum Staking
The Lido community is currently voting on the governance proposal “Should Lido consider self-limiting?” after several Ethereum developers including Vitalik Buterin, Superphiz, and Danny Ryan claimed that no single staking protocol should have a majority in staking Ethereum.
The proposal is open for voting from June 24-July 1, but the current voting shows majority opposes the proposal to limit the amount of Ethereum staking on Lido. Almost 99.81% of people have voted “no, don’t self-limit” while only 0.19% of people have voted “yes, let’s self-limit.”
The vote will help determine the growth of a protocol in Ethereum’s proof-of-stake chain and decentralized governance. A successful vote would have bound the protocol to “decreasing inbound stake flow in any shape, form or severity.” As per the current voting, the team will not continue working further until questions are raised against the protocol.
As per Dune Analytics, Lido currently accounts for a 31.63% market share with 4.126 million Ethereum staked. Followed by Kraken at only 6.4% market share.
Lido aims to provide access to staking and prevent centralized exchanges to gain the majority share of staked Ethereum. Moreover, other liquidity staking platforms may not be able to grow and meet demand, which poses liquidity risks.
Risks to the Ethereum Merge
Ethereum experts believe Lido’s dominance is a serious concern for the Merge. The ETH staked on Lido is added to the Beacon Chain. Following the merge, all Ethereum will be moved to the Beacon Chain. Thus, poses a systemic risk to the Merge.
Danny Ryan, a researcher at Ethereum Foundation, believes Lido’s dominant staking position could pose risks to the decentralized model of the Ethereum network and lead to attacks.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- CoinShares Fires Back at Arthur Hayes, Dismisses Fears Over Tether Solvency
- Bitcoin Stalls Ahead of FOMC as Analyst Van de Poppe Sees No Break Until Tuesday
- Bitcoin Hyper Presale Review: How Utility is Unlocked With ZK-SVM Rollup
- Morgan Stanley Turns Bullish, Says Fed Will Cut Rates by 25bps This Month
- ETF Expert Nate Geraci Says Bitcoin Still Lacks Proof of Digital Gold Status
- Ethereum Price Holds $3,000 as Bitmine Scoops Up $199M in ETH; What Next?
- Solana Price Outlook Strengthens as Spot ETFs See $15.68M in Fresh Inflows
- Dogecoin Price Gears Up for a $0.20 Breakout as Inverse H&S Takes Shape
- Bitcoin Price Forecast as BlackRock Sends $125M in BTC to Coinbase — Is a Crash Inevitable?
- XRP Price Prediction As Spot ETF Inflows Near $1 Billion: What’s Next?
- Solana Price Outlook: Reversal at Key Support Could Lead to $150 Target
