Vitalik Buterin clarifies he is staking only a ‘small portion’ of his ETH, contrary to previous assumptions

In a recent episode of the Bankless podcast on June 29, Ethereum co-founder Vitalik Buterin revealed that he does not stake all of his Ether. He explained that the main reason behind this decision is the complexity of setting up multisignature wallets, which are required for staking.

When ETH is staked, the keys that access it must be publicly available on an online subsystem. Buterin emphasized that setting up multisig for staking can be quite challenging and complicated in various ways. This limitation has led him to stake only a small portion of his ETH holdings.

This disclosure prompted a response from Charles Hoskinson, co-founder of Ethereum and founder of Cardano, who expressed his surprise on Twitter. Hoskinson mentioned that he stakes “all” of his Cardano holdings, highlighting the contrasting approaches of the two blockchain pioneers.

During the podcast, Buterin also discussed the EigenLayer protocol, which allows Ethereum validators and stakers to transfer their assets to other emerging networks. However, he acknowledged that restaking introduces centralization risks, as the system may value trustworthy stakers more and pose a lower risk of slashing penalties.

Sreeram Kaanan, the founder of EigenLayer, emphasized the need for a cautious and constrained approach to building restaking functionality. This approach aims to strike a balance between innovation and ecosystem well-being.

Buterin’s comments come in the wake of his June 9 blog post, where he emphasized the importance of scaling infrastructure for the Ethereum blockchain. He highlighted the challenges associated with smart contract wallets, particularly in terms of user experience and managing multiple addresses simultaneously. These complexities have underscored the need for efficient scaling solutions to ensure affordable and seamless transactions on the Ethereum network.

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