{"id":23207,"date":"2023-10-01T06:18:22","date_gmt":"2023-10-01T06:18:22","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/vitalik-buterin-voices-concerns-over-daos-approving-stake-pool-operators\/"},"modified":"2023-10-01T06:18:24","modified_gmt":"2023-10-01T06:18:24","slug":"vitalik-buterin-voices-concerns-over-daos-approving-stake-pool-operators","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/vitalik-buterin-voices-concerns-over-daos-approving-stake-pool-operators\/","title":{"rendered":"Vitalik Buterin voices concerns over DAOs approving stake pool operators"},"content":{"rendered":"
Vitalik Buterin, co-founder of Ethereum, has expressed worries regarding decentralized autonomous organizations (DAOs) exerting a monopoly over the selection of node operators in liquidity staking pools.<\/p>\n
In a September 30 blog post, Buterin issues a warning that as liquid staking pools adopt the DAO approach for governance over node operators\u2014who are ultimately responsible for the pool’s funds\u2014it can expose them to potential risks from malicious actors.<\/p>\n
\u201cWith the DAO approach, if a single such staking token dominates, that leads to a single, potentially attackable governance gadget controlling a very large portion of all Ethereum validators.\u201d<\/p><\/blockquote>\n
Buterin highlights staking protocol Lido (LDO) as an example with a DAO that whitelists node operators. However, he emphasizes that relying on just one layer of protection may prove insufficient:<\/p>\n
\u201cTo the credit of protocols like Lido, they have implemented safeguards against this, but one layer of defense may not be enough,\u201d he noted.<\/p>\n