TechFlow news: Several Ethereum liquid staking service providers, including Rocket Pool, StakeWise, Stader Labs, Diva Stake, and Puffer Finance, have recently announced or are developing self-imposed caps to limit their total staked holdings above 22%. This move aims to address the growing centralization issue in the Ethereum staking market.
The 22% threshold is based on Ethereum's requirement of 66% validator consensus to finalize blockchain state. If no major entity holds more than 22%, at least four entities would need to collude to impact finality.
Some argue that self-capping is unrelated to "Ethereum alignment," which refers to enabling open innovation.
However, concerns remain about Lido’s 32.4% market share potentially causing centralization, described by some as "uncomfortable." Overall, the community holds diverse views on this matter.
