Lefteris warns Ethereum funding plan could create staking cartel

cryptonews06-22 19:04

Rotki founder and Ethereum developer Lefteris Karapetsas has opposed a new proposal that would fund Ethereum ecosystem work through validator rewards. Summary Lefteris said the validator funding...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nLefteris warns Ethereum funding plan could create staking cartel\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-06-22 19:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://crypto.news/lefteris-warns-ethereum-funding-plan-could-create-staking-cartel/><strong>cryptonews</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Rotki founder and Ethereum developer Lefteris Karapetsas has opposed a new proposal that would fund Ethereum ecosystem work through validator rewards. \n\n\nSummary\n\n\n\nLefteris said the validator funding...</p>\n\n<a href=\"https://crypto.news/lefteris-warns-ethereum-funding-plan-could-create-staking-cartel/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GDLC","symbol_name":"Grayscale CoinDesk Crypto 5 ETF","start_time":0,"source_url":"https://crypto.news/lefteris-warns-ethereum-funding-plan-could-create-staking-cartel/","article_id":"2645335021","we_media_id":null,"thumbnails":[],"rights":{"source":"crypto_news_highlight","url":"https://crypto.news/lefteris-warns-ethereum-funding-plan-could-create-staking-cartel/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2645335021","pubTimestamp":1782126277,"columns":[],"sourceInfo":{"source_id":"crypto_news_highlight","name":"Crypto News"},"weMediaInfo":null,"summary":"Rotki founder and Ethereum developer Lefteris Karapetsas has opposed a new proposal that would fund Ethereum ecosystem work through validator rewards.Lefteris said the validator funding proposal could let top stakers form a reward-routing cartel network.The proposal would redirect up to 10% of validator rewards toward shared Ethereum public goods.He also argued Ethereum core development needs consolidation and closer contact with protocol users.The proposal, called Validator Redirected Revenue, would let validators route part of their staking income toward public goods, infrastructure and core development.Karapetsas said he had read both the proposal and the response to it before forming his view. He criticized people who argued against versions of the plan that were not in the original post, but said he still opposed the actual mechanism.Karapetsas said the design could create “a cartel of the top stakers” able to divert up to 10% of the network’s validator rewards. He argued that the","collect":0,"end_time":0,"defaultTopTitle":"crypto.news","property":[],"viewcount":null,"language":"en","relate_stocks":{"GDLC":"Grayscale CoinDesk Crypto 5 ETF","BETE":"等权重比特币&以太币期货ETF-ProShares","ETHV":"以太坊ETF-VanEck","CETH":"以太坊ETF-21Shares","ETHU":"2倍以太币期货ETF-Volatility Shares","03046":"华夏以太币","09179":"嘉实以太币-U","CBOY":"Calamos Bitcoin Structured Alt Protection ETF - July","ARKY":"ARK 21SHARES ACTIVE BITCOIN ETHEREUM STRATEGY ETF","BITB":"比特币ETF-Bitwise","ETHW":"以太坊ETF-Bitwise","BETH":"比特币&以太币期货ETF-ProShares","03009":"博时以太币","ETH":"低成本以太坊ETF-Grayscale","BEGS":"RAREVIEW 2X BULL CRYPTOCURRENCY & PRECIOUS METALS ETF","EETH":"以太币期货ETF-ProShares","STCE":"Schwab Crypto Thematic ETF","ETQ":"T-Rex 2X Inverse Ether Daily Target ETF","09046":"华夏以太币-U","QETH":"以太坊ETF-Invesco Galaxy","CBXO":"Calamos Bitcoin 90 Series Structured Alt Protection ETF - October","ETHA":"以太坊ETF-iShares","BITI":"1倍做空比特币期货ETF-Proshares","LFGY":"YieldMax Crypto Industry and Tech Portfolio Option Income ETF","CBXY":"Calamos Bitcoin 90 Series Structured Alt Protection ETF - July","FETH":"以太币ETF-Fidelity","BTC":"Grayscale Bitcoin Mini Trust","ETHD":"ProShares UltraShort Ether ETF","CBTA":"Calamos Bitcoin 80 Series Structured Alt Protection ETF – April","BTF":"比特币&以太币期货ETF-CoinShares","ETHE":"最大以太坊ETF-Grayscale","BTCI":"NEOS Bitcoin High Income ETF","BITQ":"Bitwise Crypto Industry Innovators ETF","SETH":"1倍做空以太币期货ETF-Proshares","EZET":"以太坊ETF-Franklin","ETHI":"Defiance Leveraged Long Income Ethereum ETF","03179":"嘉实以太币","09009":"博时以太币-U","YETH":"Roundhill Ether Covered Call Strategy ETF","AETH":"以太坊策略ETF-Bitwise","CRPT":"First Trust SkyBridge Crypto Industry and Digital Economy ETF","BKCH":"AdvisorShares Sabretooth ETF","ETCO":"Grayscale Ethereum Covered Call ETF","ETHT":"ProShares Ultra Ether ETF","BITW":"Bitwise 10 Crypto Index ETF","ETU":"T-Rex 2X Long Ether Daily Target ETF","CBTY":"Calamos Bitcoin 80 Series Structured Alt Protection ETF - July"},"translate_title":"Lefteris警告以太币融资计划可能会创建质押卡特尔","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ARKY":1.5,"AETH":1.5,"BITI":0.6,"CBTA":0.6,"BTF":1.5,"03009":0.9,"BTCI":0.6,"EZET":1.5,"BETE":1.5,"ETHV":1.5,"LFGY":1.5,"BITB":0.6,"METHmain":1.5,"BITQ":1.5,"STCE":1.5,"ETHE":1.5,"CBXY":0.6,"ETHT":1.5,"BITW":1.5,"ETHI":0.6,"ETHU":1.5,"ETU":1.5,"BKCH":1.5,"03046":0.9,"BTC":0.6,"09009":1.5,"CBTY":0.6,"ETHD":1.5,"03179":0.9,"ETQ":0.6,"CETH":1.5,"09046":1.5,"ETH":1.5,"CBXO":0.6,"ETHW":1.5,"BEGS":1.5,"BETH":1.5,"09179":1.5,"YETH":1.5,"ETCO":0.6,"CBOY":0.6,"GDLC":1.5,"QETH":1.5,"SETH":0.6,"ETHA":1.5,"CRPT":1.5,"EETH":1.5,"FETH":1.5},"content_text":"Rotki founder and Ethereum developer Lefteris Karapetsas has opposed a new proposal that would fund Ethereum ecosystem work through validator rewards. \n\n\nSummary\n\n\n\nLefteris said the validator funding proposal could let top stakers form a reward-routing cartel network.\nThe proposal would redirect up to 10% of validator rewards toward shared Ethereum public goods.\nHe also argued Ethereum core development needs consolidation and closer contact with protocol users.\n\n\n\nThe proposal, called Validator Redirected Revenue, would let validators route part of their staking income toward public goods, infrastructure and core development.\nKarapetsas said he had read both the proposal and the response to it before forming his view. He criticized people who argued against versions of the plan that were not in the original post, but said he still opposed the actual mechanism.\nStaking cartel risk drives opposition\nThe proposal would allow validators to redirect between 0% and 10% of staking rewards. If more than half of validators support a non-zero rate, the contribution would apply across the validator set. Validators would also choose preferred recipient addresses, with a splitter contract routing funds to selected projects.\n\nOver the weekend I read the proposal for funding core development through validator proceeds and the reaction to it.A lot of misinformed people in X, had obviously not even read the proposal. When trying to argue against something AT LEAST argue against the actual proposal and… pic.twitter.com/pKZxrLfsRP— Lefteris Karapetsas (@LefterisJP) June 22, 2026\n\nKarapetsas said the design could create “a cartel of the top stakers” able to divert up to 10% of the network’s validator rewards. He argued that the remaining validators could be left funding choices made by the largest staking entities, even if they disagreed with those choices.\nEthereum core development criticism widens debate\nKarapetsas also tied his opposition to broader concerns about Ethereum core development. He said he was disappointed with how core development had progressed over the past decade and argued that it had lost contact with protocol users, especially developers who deal with Ethereum’s technical choices.\nHe said Ethereum has built too much technical complexity and cited RLP, SSZ and RLPx as examples. In his view, a funding squeeze could force consolidation in research and core development. He called that outcome overdue and said he did not want to keep rewarding the same development culture.\nWho decides funding remains unresolved\nThe proposal’s supporters frame the mechanism as a response to Ethereum’s free-rider problem. Many projects benefit from shared tools, security work and public infrastructure, while only a few groups pay for that work directly. The proposal argues that validators benefit from Ethereum’s long-term value and may therefore be natural funders.\nAs previously reported by crypto.news, the proposal estimated that a 5% to 10% redirect could raise 50,000 to 70,000 ETH each year for ecosystem funding. It also noted concerns over staking operators setting preferences while ETH holders bear the yield reduction.\nKarapetsas said that if Ethereum needed a funding mechanism, he would prefer using burned ETH fees rather than a share of validator proceeds. He said that option has its own problems tied to gas use, but viewed it as preferable to the cartel risk.\nHe also questioned a suggestion for a pre-approved funding list, asking who would decide what appears on that list. The debate remains early because Validator Redirected Revenue is still a research forum proposal, not a live Ethereum rule change.\nThe next step will depend on whether researchers can answer the governance and incentive questions without weakening confidence among stakers. For now, his argument adds a clear warning: funding reform should not give large stakers too much control over rewards that belong to the wider validator set.\n\n\n\n\n\n                Read more:\n            \n\n                Why the banking industry is fighting a crypto bill","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.44.0","shortVersion":"4.44.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2645335021","isCrawlerRequest":true}