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Q🎩
@qsteak.eth
Regarding the Lido stake holdings, which of this do you think is actually the biggest lift? - Convince Lido to self limit. - Vampire by offering real incentives to exchange stETH. - Implement an enshrined solution. - Accept the market decision, and compel Lido to truly decentralize via governance or social slashing.
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dy
@dy
Don't understand what the issue is with Lido having 33% stake The code is public All it does is keep a set of validators and delegate beacon chain ETH to it There are thousands of validators on Lido You're simply securitizing staked ETH, which is important for defi
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Thomas
@aviationdoctor.eth
Code is not the issue. One third of all staked ETH (worth $13B) is controlled by just 30 node operators who are doxxed. It’s a centralized and permissioned cartel, which defeats the decentralized and permissionless ethos of Ethereum. You cannot join that group even if you wanted to and were technically capable. 1/2
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Thomas
@aviationdoctor.eth
Because they are doxxed, the node operators are also subject to external threats & pressure, legal or otherwise (e.g., censorship). As for the governance DAO, two-thirds of LDO tokens were distributed to the VCs, founders, devs, and employees, with a vesting period. They together have the majority of the voting power.
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dy
@dy
I see. But the node operators would exist with or without lido. For Lido specifically to be compromised all of the node operators would have to be compromised which i think can happen with or without lido
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Thomas
@aviationdoctor.eth
No, those 30 NOs would not control ~33% of all staked ETH if its wasn’t for Lido. They’re not staking their own ETH - they’re staking the ETH of everyone who sent theirs to Lido because it’s an attractive combo of high yield and ease of use. Lido attracted all this ETH and placed in the hands of just 30 people
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