Vitalik Buterin declares that he is not allocating all of his ETH to staking, only a "small portion."
The co-founder of Ethereum, Vitalik Buterin, explained that the main reason is that it has to be in a multisig, which is still quite difficult to set up.
Ethereum co-founder, Vitalik Buterin, stated that he doesn't stake his entire Ether (ETH) due to multi-signature wallets being "complicated in various ways."
In the June 29th episode of the Bankless podcast, Buterin revealed the "main reason" why he only stakes a small fraction of his ETH.
He explained:
"Because if you stake your ETH, the keys that access it have to 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 becomes complicated in various ways."
Charles Hoskinson, co-founder of Ethereum and founder of Cardano, took to Twitter on June 30th, stating that he is "speechless" after hearing that Buterin only stakes a small portion of his Ether.
Hoskinson added that "all" of his Cardano (ADA) is staked.
Buterin also discussed the EigenLayer protocol, which allows Ethereum validators and participants to "reposition" their assets on other emerging networks.
Although it is currently in its testnet phase and won't be launched until the third quarter of 2023, Buterin said the main challenge is creating "centralization risks," stating:
"Trusted stakeholders would be more valued by the system than untrusted ones.
Trusted stakers are much less likely to actually get slashed." Sreeram Kaanan, the founder of EigenLayer, explained that there are "complex risks" with the repositioning, and it's important to take a "constrained approach in building back."
"Constraints being what's really good for the ecosystem and having constraints in what innovation can be triggered based on that concept," he stated.
This comes after Buterin stated in a blog post on June 9th that the Ethereum blockchain "fails" without sufficient scaling infrastructure to lower transaction costs.
He also noted another failure point related to smart contract wallets.
He explained that a shift to smart contract wallets has resulted in certain challenges due to the complexities associated with the user experience when users take control of multiple addresses at the same time.
