Ethereum

Are validators in the same cluster (eg same exchange, same user) more likely than unrelated validators to miss attestations at the same time? If so, can we tweak rewards to favor decentralized staking?

Possibly yes.

https://ethresear.ch/t/supporting-decentralized-staking-through-more-anti-correlation-incentives/19116

I think an unfortunate reality is that this is likely to cause staking providers to shift their operations to be more distributed rather than more decentralized.

We want more distinct entities staking rather than more distributed nodes.

I think in-protocol delegation is likely a more promising approach.

Web3 developer • ZK • Security researcher • Privacy • /ʲustɑs/ • https://linktr.ee/ustas.eth

building open source public goods @a16zcrypto

As @ustas said - even if it doesn't reduce centralization of control it reduces centralization of location to avoid mass outages due to downtime from service providers.

Not perfect, but better than what exists today.

Shifting the rewards to the distribution of nodes will still greatly benefit the network. Yes, it's hardly the solution to node censorship, but it will at least provide a more decentralized infrastructure and more resilience to awful situations like AWS outage 😌