Why the Ethereum Foundation Avoids ETH Staking: Insights from Vitalik Buterin
10 months ago

Recently, Vitalik Buterin addressed the question of why the Ethereum Foundation does not stake its ETH holdings and instead uses income to cover operational costs. In a post on X, he elaborated that one internal reason for this decision is to avoid being cornered into making an 'official choice' during contentious moments such as hard fork events.

Buterin shared an intriguing concept currently under consideration: enabling grants in the form of 'you can stake our ETH, you can choose how to stake, as long as it is ethical and maintains upward momentum.' This proposition aims to foster a culture where stakeholders can explore varied staking methodologies while remaining aligned with Ethereum's core values.

Additionally, he discussed another potential solution that involves distributing legitimacy and resources among a broader range of stakeholders. This strategy would allow multiple organizations to represent Ethereum credibly in the public eye, thereby enhancing the ecosystem's stability and resilience.

Buterin expressed optimism, noting that the current landscape regarding this issue is significantly improved compared to two years ago, a period marked by numerous challenges and uncertainties..

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