While the SEC's Ethereum move continues to be discussed, Ethereum co-founder Vitalik Buterin made a new announcement at the Ethtaipei 2024 event in Taiwan.
At this point, Vitalik Buterin introduced “rainbow staking,” a new conceptual framework designed to allow protocol service providers to participate in a diverse menu of protocol services.
It was stated that rainbow staking directs investors to individual staking and provides a significant advantage for individual stakers in this regard and encourages them to participate in various service sectors.
Vitalik pointed out the centralization risk of ETH staking and emphasized that Lido, Coinbase, Binance and others have an excessive share in staking.
Regarding staking, Buterin said that there is a group of staking investors who have at least 32 ETH, which is the threshold for running a validator, but prefer staking pools and liquid staking tools over individual staking.
Stating that ETH staking in this way increases the risk of centralization, Buterin recommended that this group of investors choose the “single staking” option to reduce centralization risks.
“ A group of investors do not choose to stake alone, but these investors may choose to “stake alone” to reduce the centralization risks of ETH trading.
Even if solo staking becomes maximum easier with the new Rainbow staking feature, I think many people will still not stake solo.
But Rainbow staking could potentially solve problems if they come to the fore.”
*This is not investment advice.
