According to Cointelegraph, Ethereum co-founder Vitalik Buterin proposed several solutions to reduce Ethereum’s block production and staking centralization problems during the “Scourge” phase.

Buterin said that small staking pools are shifting to larger pools due to economies of scale, with two entities building 88% of Ethereum blocks in the first two weeks of this month.

He emphasized that staking centralization is one of the biggest risks facing Ethereum, which may lead to transaction censorship and other crises. The current 30% ETH staking is enough to protect Ethereum from a 51% attack, but if almost all ETH is staked, it will bring additional risks.

To address these issues, Buterin suggested limiting the amount of ETH that users can stake and capping the staking penalty at 12.5%. He also proposed a two-tier staking model, including “risk-reducible” and “risk-free” staking.

Buterin also proposed the "Fork Choice Mandatory Inclusion List" proposal, which returns the task of selecting transactions to the proposer or staker, and the builder is only responsible for transaction sorting.

Another solution is “BRAID”, which distributes the block production process to multiple roles, each of which only needs to have moderate complexity to maximize its income.