Lido community debates limiting staked Ethereum as centralization concerns grow
Lido community members have begun debating whether the staking service provider should limit its share of staked Ethereum because of the systemic centralization risk this poses to the blockchain network.The Lido team submitted a governance proposal discussing the pros and cons of limiting its share of Ethereum staking.
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According to the proposal, several major contributors to Ethereum, like Vitalik Buterin, have expressed opinions on the dangers of Lido’s network dominance. Some stakeholders have suggested that the service provider drop its share to between 15% and 33%.The proposal is also coming at a time when the value of staked Ethereum has de-pegged from that of ETH. This has led to massive liquidation and raised fears that it could complicate Ethereum merge since stETH will be redeemable for ETH after the merge.
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