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Vitalik Buterin Reveals Staking Only Tiny Portion of ETH

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Vitalik Buterin Reveals Staking Only Tiny Portion of ETH

Vitalik Buterin Reveals Staking Only Tiny Portion of ETH

  • Cardano founder Hoskinson said that he had “all” of his ADA staked.
  • Buterin pointed towards complicated multisignature wallets as the reason.

Vitalik Buterin, one of Ethereum’s founders, has said that he does not stake all of his Ether since multisignature wallets are “complicated in a bunch of ways.” Buterin explained the “biggest reason” he is only staking a tiny portion of his ETH on the June 29 edition of the Bankless podcast.

Buterin elaborated:

“Because if you stake your ETH, the keys that access it have to be public on a subsystem that is online. For safety, it has to be a Multisig. Multisig for staking is still fairly difficult to set up; it gets complicated in a bunch of ways.”

Cardano Founder Shocked

On June 30, Ethereum co-founder and Cardano founder Charles Hoskinson tweeted that he is “at a loss for words” after learning that Buterin only stakes a tiny percentage of his Ether. Hoskinson also said that he had “all” of his ADA staked. Buterin also spoke about a new protocol called EigenLayer, which lets Ethereum validators and stakers “re-stake” their assets on other new networks.

Buterin stated the primary difficulty is that it presents “centralization risks,” even though it is just in the testnet phase and is not anticipated to debut until the third quarter of 2023. In this proposed system, reliable stakers would be rewarded more than those who are less reliable. Also, reliable stakers chances of being slashed are much lower.

Buterin said on June 9 that the Ethereum blockchain “fails” without enough scaling infrastructure to make transactions cheap, thus this comes as no surprise. In addition, he brought out yet another potential weak spot in the system: smart contract wallets.

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