Vitalik Buterin of Ethereum explains how to keep whales from dominating ETH2 staking.

The co-founder of Ethereum (ETH), Vitalik Buterin, has expressed his thoughts on how to prevent whales from dominating staking.

Many members of the Ethereum (ETH) community have expressed worries about the potential centralization of the Ethereum 2.0 (Consensus Layer) staking process. This sparked a debate about feasible alternatives to whale dominance.

Way Out to Possible Centralization in the Upcoming ETH2 Network

On the 13th of May 2022, Superphiz.eth, a pseudonymous Ethereum fan and Beacon chain community activist, moved to Twitter to express his concerns about possible centralization in the much-anticipated Consensus Layer (ETH2) network.

He wondered in the tweet which pool would be the first to limit its own staking power such that it did not operate more than 22% of the total number of validators on the blockchain.

This could reduce the earnings of the pioneers, but it would considerably improve the network's security by reducing the possibility of a 51 percent attack.

"I wonder, who will be the first staking provider to publicly commit to limiting themselves to not operating more than 22% of validators on the chain? Who do you want to see step up to the plate and prioritize beacon chain health above profits?" Superphiz.eth tweeted.

In response to Superphiz.eth's worry, Vitalik Buterin, co-founder of Ethereum, presented an economic justification for the limit. He believes it is appropriate to raise fees for staking pool participants who control more than 15% of the network.

Fees can be restored to regular levels after the impacted pool's share falls below 15%, according to his suggestion.

"Speculative controversial take: we should legitimize price gouging by top stake pool providers. Like, if a stake pool controls > 15%, it should be accepted and even expected for the pool to keep increasing its fee rate until it goes back below 15%," Vitalik Buterin replied.