Buterin recommended capping the amount of Ether a user can stake and limiting staking penalties to 12.5% of staked Ether.
Ethereum co-creator Vitalik Buterin pitched several solutions to help Ethereum minimize block production and staking centralization through the “Scourge” phase of Ethereum’s technical roadmap.
In an Oct. 20 post, Buterin expressed concern that economies of scale within staking have resulted in small staking pools leaving for larger pools, while two entities built 88% of Ethereum blocks over the first two weeks of this month.
Buterin stressed that staking centralization poses “one of the biggest risks” to Ethereum and could lead to a higher risk of transaction censorship and “other crises.” He said:
