Vitalik Buterin Shares His Vision for a Decentralized Ethereum

Vitalik Buterin, co-founder of Ethereum, is actively discussing improvements to the blockchain’s Proof-of-Stake (PoS) system in his recent essay

In his essay, labeled “Possible Futures of the Ethereum Protocol, Part 3: The Scourge,” he emphasizes the need to maintain decentralization while addressing security threats.

Buterin introduces the Scourge as a proposed upgrade aimed at reducing centralization risks in Ethereum’s staking process, which he attributes to factors like block construction centralization and the 32 ETH minimum staking requirement. He warns that if large stakers dominate due to economic advantages, smaller participants may exit the ecosystem.

To combat this, Buterin suggests decentralizing block production by shifting transaction selection from builders to stakers. He proposes that builders should only organize transactions, allowing stakers to choose which ones to include.

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He also discusses alternative solutions like Multiple Concurrent Proposers (MCP), which distribute block production across various entities, making it harder for any single entity to dominate. Additionally, Buterin raises concerns about potential “over-staking,” cautioning that if the staked ETH supply rises too high, it could push stakers toward centralized platforms.

To mitigate this risk, he recommends adjusting Ethereum’s issuance curve so that staking rewards diminish if staked ETH exceeds a certain threshold, preventing large stakers from gaining excessive influence. Buterin’s proposals aim to protect Ethereum’s decentralization and long-term security as the network scales.

Kosta Gushterov