Vitalik Buterin proposes Ethereum upgrades for decentralisation

Vitalik Buterin, Ethereum’s (CRYPTO:ETH) co-founder, has suggested several upgrades aimed at maintaining decentralisation within the network.

In a recent essay titled "Possible Futures of the Ethereum Protocol, Part 3: The Scourge," Buterin outlined ways to mitigate the risks of centralisation in Ethereum’s Proof-of-Stake (PoS) mechanism.

The Scourge phase focuses on addressing centralisation in Ethereum's staking process.

Buterin identified key factors, such as block production centralisation, economic pressures, and the 32 ETH staking minimum, as contributors to centralisation risks.

He emphasised that these factors may lead to large stakers dominating the network while smaller participants are forced to join larger pools.

“One of the biggest risks to the Ethereum L1 is proof-of-stake centralising due to economic pressures.

If there are economies-of-scale in participating in core proof-of-stake mechanisms, this would naturally lead to large stakers dominating, and small stakers dropping out,” Buterin stated.

To counter these risks, Buterin proposed breaking up block production tasks, shifting transaction selection responsibilities to stakers.

He explained that by allowing stakers to choose transactions while builders handle the ordering process, the risk of centralisation can be reduced.

Additionally, Buterin suggested using solutions like Multiple Concurrent Proposers (MCP) and the BRAID system, which would spread block production across multiple entities, thus preventing any single entity from dominating the staking process.

Buterin also raised concerns about “over-staking,” as currently 30% of Ethereum’s total supply is staked.

He warned that excessive staking could drive more ETH holders toward centralised platforms.

To address this, he proposed adjusting Ethereum’s issuance curve so that staking rewards diminish when a certain staking threshold is exceeded.

At the time of writing, the Ethereum price was $2,749.19.