Vitalik Buterin's Warning: ETH Staking Pools and DAOs at Risk
Originally Published 2 years ago — by Cointelegraph
Ethereum co-founder Vitalik Buterin has expressed concerns about decentralized autonomous organizations (DAOs) having too much control over the selection of node operators in liquidity staking pools. He warns that this approach could expose staking pools to potential risks from malicious actors. Buterin suggests encouraging the use of multiple liquid staking providers to decrease the likelihood of any provider becoming too large and posing a systemic risk. He also highlights the risks associated with certain approaches, such as the potential for 51% attacks. Buterin emphasizes the need for a mechanism to determine who can act as node operators while avoiding unrestricted access that could be exploited by attackers.