Out of the last 1000 blocks, 420 have been built by just Lido and Coinbase.
25% That's fine
75% This needs to change
15,885 votes • Final results

Sep 15, 2022 · 3:38 PM UTC

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top 7 entities controlling >2/3 of the stake is pretty disappointing to see tbh
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And no, dear Bitcoin fans, it is not better in Bitcoin. In fact you need only 4 entities to come to >72%
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More context on comparing Ethereums and Bitcoins “signs of centralization“:
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Replying to @koeppelmann
It depends—is the option 420 being built by Kraken and Coinbase? It seems like Lido (with 28 disjoint operators) being a leader in staking derivatives could also be seen a saving grace here. Instead of cbETH and krETH. Disclaimer: I’m a LDO investor
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Lido is better but only marginally.
koeppelmann
@koeppelmann
15 Sep 2022
But let's say LIDO would decide to only create OFAC compliant blocks - than the exact same argument would apply why validators would obey that rules as well.
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Replying to @koeppelmann
Not sure that's fair when Lido is really a conglomerate of 23 mid-sized staking entities. The rewards are going to a singular entity, but really the block formation is divided among non-colluding/communicating sub-entities.
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except that Lido makes the rules how block formation should be done and staking entities will be penalized and eventually kicked out if they don't obey. research.lido.fi/t/discussio…
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Replying to @koeppelmann @laurashin
Isn't it a little weird to say "built by Lido" tho?
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Is it really though? It feels a bit like saying McDonalds is decentralized as individual restaurants are operated by others.
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Replying to @koeppelmann
Certianly could be better. But you're discounting for slashing, both in-protocol and social. While highly undesirable, even a 51%+ supermajority faces slashing on behavior that is considered malicious by the other participants (not just stakers) in Ethereum.
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But if we always emphasize the ways we could fight back 51% (or even higher %) we will not create the culture to change those numbers I quoted.
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Replying to @koeppelmann @dylanleclair
Lido is 28 different operators, and if they try out anything "funny" then I'll take my ETH out of their service. That's how it works.
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you can not take it out for at least the next 6-12 months.
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Replying to @koeppelmann
How much of Gnosis chain is run by Stakewise Martin? Kids, glass houses, stones
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just because we have the same problem and we don't have a full solution to the problem either can not mean that it can no longer be called a problem.
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Replying to @koeppelmann @CryptoSeq
#AVAX fixes this
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lulz
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Replying to @koeppelmann
To all those that voted "This needs to change", are you running validators? If not, why? You cannot claim that you care about decentralization, but act as if it was someone else's responsibility.
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Replying to @koeppelmann
Send me some ETH and I wil stake it 😁
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Replying to @koeppelmann @CryptoSeq
Why would it change? More likely the opposite will happen.
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Replying to @koeppelmann
For Solana, 30 validators control 33% of stake
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Replying to @koeppelmann
well until unstake upgrade, many are "locked" in there. more competition and the ability to rebalance will help.
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Replying to @koeppelmann
But Lido is a grouping of node operators, no? This is a bit disingenuous.
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Replying to @koeppelmann
A third option would be “nobody cares about a network that is ultimately irrelevant”.
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Replying to @koeppelmann
that's scary
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Replying to @koeppelmann
I think you will never change the centralisation issue until you move away from Pow and PoS
Replying to @koeppelmann
You get an investment contract and you get an investment contract, everyone gets an investment contract! Yeeeaah!!!!
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Replying to @koeppelmann
If anyone was wondering: etherscan.io/stat/miner?bloc… How it was on PoW
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Replying to @koeppelmann

ALT This Fine GIF
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Replying to @koeppelmann
Preferably it'd be better distributed but it's already better than PoW + there's social slashing to protect against 51% attacks which is why I voted "that's fine"
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Replying to @koeppelmann
A great product by @indexcoop that could change that x.com/_idan_levin/status/156…
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