At least five Ethereum liquid staking providers have either imposed or are working to impose a self-limit rule in which they promise not to own more than 22% of the Ethereum staking market. This proposal aims to address concerns of Ethereum staking becoming increasingly centralized. The self-limit was proposed at 22% because 66% of validators need to agree on the state of Ethereum, meaning at least four major entities must collude in order for the chain to reach finalization.The largest Ethereum liquid staking provider, Lido Finance, voted by a 99.81% majority not to self-limit back in June. They have expressed an intention to control the majority of validators on the beacon chain. Lido currently dominates the Ethereum staking market, accounting 32.4% of all staked Ether, while the next entity, Coinbase, accounts for only 8.7% of the market.Reactions from the Ethereum community have been mixed. One industry pundit explained that the self-limit proposal has nothing to do with “Ethereum alignment”. They claimed those trying to push the proposal wouldn’t make way if they were in Lido’s position. Others were more wary of the potential centralization issues at hand, describing Lido’s market share dominance as “disgusting and selfish”.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Global
Countries
Sentiment	neutral
Relevance Score	8
People	Mippo, DeFi Dad., Superphiz
Companies	Rocket Pool, Puffer Finance, Stader Labs, Lido Finance, StakeWise, Diva Staking, Coinbase
Currencies	Ethereum, Bitcoin
Securities	None