Ethereum co-founder Vitalik Buterin proposed a series of solutions in the “Scourge” phase to minimize Ethereum’s block production and staking centralization.

Buterin noted that staking pools are shifting to large pools due to economic scale, and in the first two weeks of this month, two assets produced 88% of Ethereum blocks. He emphasized that staking centralization carries major risks such as transaction censorship and other crises.

Buterin suggested limiting the amount of staking and capping staking penalties at 12.5%. He also proposed a two-tiered “risk-bearing” and “risk-free” staking model.

While Ethereum’s security is not at risk, Buterin noted that centralization could increase transaction censorship and cause users to wait longer for block inclusion.

Share your thoughts on this in the comments.