Ethereum co-founder Vitalik Buterin stated that he does not stake all of his Ethereum (ETH) because multisig (multisig) wallets are "complicated in many ways".
June 29 episode of the Bankless Podcast, titled Replacement Alignment, Buterin revealed the “main reason” why he is only staking a small fraction of his Ethereum, instead of staking all of it. He explained:
“Because if you stake your ETH, the keys that access it must be public in a subsystem that is online. For security, it has to be a Multisig, Multisig for staking is still quite difficult to set up, it gets complicated in many ways.”
Charles Hoskinson, co-founder of Ethereum and founder of Cardano (ADA) took to Twitter on June 30 saying he is “speechless” after hearing that Buterin only stakes a small part of his Ether.
Hoskinson added that "all" of his Cardano is staked.
I had to listen to this a few times. I am speechless. All our Ada is bet. Guess what a properly designed proof-of-stake protocol is supposed to look like. https://t.co/ye6va1DH06
—Charles Hoskinson (@IOHK_Charles) June 29, 2023
buterin too discussed the EigenLayer protocol – a protocol that allows Ethereum validators and participants to “re-stake” their assets on other emerging networks.
He said the challenge is that it creates "centralization risks", stating:
“The system would value trustworthy stakeholders more than unreliable ones. Reliable bettors are much less likely to get cut.”
Sreeram Kaanan, founder of EigenLayer, explained that there are "complex risks" with staking and that it is important to take a "narrow approach in staking buildings."
"Are restrictions what's really good for the ecosystem? And having restrictions to build what new innovation can be unleashed based on this concept. The driving value is permissionless innovation," he said.
Related: Vitalik Buterin and Polygon co-founder will help send $100 million for COVID-19 research
This comes after Buterin declared in a June 9 blog post that the Ethereum blockchain directly “fails” without sufficient scaling infrastructure to make transactions cheaper.
He also noted that another point of failure relates to smart contract wallets.
He explained that the move to smart contract wallets has given rise to certain challenges due to the complexities associated with the user experience side when users take control of multiple addresses at once.
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