{"id":128944,"date":"2025-05-09T21:15:46","date_gmt":"2025-05-09T21:15:46","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=128944"},"modified":"2025-05-09T21:15:46","modified_gmt":"2025-05-09T21:15:46","slug":"ethereums-new-staking-limit-is-not-a-risk-to-decentralization-says-consensys-researcher","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=128944","title":{"rendered":"Ethereum&#039;s new staking limit is not a risk to decentralization, says Consensys researcher"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsEthereum\u2019s Pectra upgrade doesn\u2019t pose a threat to decentralization, according to Mallesh Pai, senior research director at blockchain software firm Consensys, describing the update as a cleanup of the behind-the-scenes \u201cbusy work\u201d currently handled by validators.<br \/>\nDuring a May 9 Cointelegraph X Space, Pai said a validator\u2019s chances of proposing a block or earning rewards remain tied to how much ETH they hold, adding that larger validators don\u2019t gain any new advantages under the upgrade:<br \/>\n\u201cRewards continue to be proportional to the amount of ETH you have.  it&#8217;s not the case that if you&#8217;re a big validator, you somehow have any more advantages than you did before.\u201d<br \/>\nPectra is Ethereum\u2019s most extensive network upgrade since the Merge took place in September 2022. Pectra allows validators to stake as much as 2,048 ETH, up from the previous limit of 32 ETH. The new standard has raised community concerns about the risks of centralization on the network.<br \/>\nAccording to Pai, the Pectra upgrade has taken \u201ca bunch of busy work that the network was doing behind the scenes and removed it.\u201d<br \/>\nPai noted that while there are about a million technical validators on Ethereum, many aren\u2019t truly distinct \u2014 large validators often operate numerous virtual keys from a single physical machine. With the Pectra upgrade, those keys can now be consolidated \u2014 something he says they are already seeing.<br \/>\n\u201cIn the best case, we\u2019ll get to about 30,000 validators,\u201d he said, adding that this consolidation reduces auxiliary work and enables network stakeholders to focus on what matters, such as lowering gas limits.<br \/>\nRelated: Ethereum Pectra upgrade adds new features \u2014 How long before ETH price reacts?<br \/>\nNew Pectra staking limit paves the way for institutions<br \/>\nThe new limit could pave the way for institutions to stake ETH, according to Artemiy Parshakov, vice president of institutions at Ethereum staking service P2P.org. \u201cEIP-7002 makes institutional staking much easier to integrate without taking too much risk.\u201d<br \/>\nEther staking within exchange-traded funds has been a hot topic in 2025. BlackRock has said that the successful Ether ETFs are less perfect without staking, and multiple financial institutions have filed for amendments to their Ether ETFs to allow for staking.<br \/>\nIf approved, investors might be more inclined to buy into the ETFs, as they could receive yield. The SEC has yet to rule on staking amendments.<br \/>\nBloomberg ETF analyst Eric Balchunas recently forecast in a podcast interview that if staking were to be approved for Ether ETFs, it would have \u201ca little impact\u201d on inflows. \u201cThe bigger problem with Ethereum is performance; it just doesn\u2019t ever go on a nice long rally.\u201d<br \/>\nMagazine: Pectra hard fork explained \u2014 Will it get Ethereum back on track?<a href=\"https:\/\/cointelegraph.com\/news\/ethereum-new-staking-limit-not-risk-decentralization-consensys?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsEthereum\u2019s Pectra upgrade doesn\u2019t pose a threat to decentralization, according to Mallesh Pai, senior research director at blockchain software firm Consensys, describing the update as a cleanup of&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128944"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=128944"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128944\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=128944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=128944"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=128944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}