To bolster the decentralization and equity of Ethereum’s staking system, Vitalik Buterin, co-founder of Ethereum, has introduced a proposal aimed at refining the network’s protocol.
Known as the “anti-correlation incentive” program, Buterin’s initiative targets the rectification of common mistakes made by validators, such as the failure to complete attestations—an integral process vital for ensuring the network’s security and efficiency.
The impetus behind Buterin’s proposal lies in an observation within decentralized systems: errors made by one participant often propagate across other nodes or validators controlled by the same entity.
By discouraging such uniformity in errors, the anti-correlation incentive program endeavours to cultivate a more dispersed and resilient network architecture.
Central to Buterin’s rationale is the apprehension that without such measures, efforts to promote decentralization might inadvertently foster mere superficial compliance.
Validators could superficially diversify without genuinely dispersing control or resources, thereby perpetuating the status quo under the guise of decentralization.
While Ethereum currently implements penalty mechanisms for severe infractions, known as slashing, these have typically been reserved for egregious or malicious conduct.
In contrast, the proposed anti-correlation incentive program would embed penalties into the network’s routine operations.
The approach particularly targets large stakers operating multiple validators from a single location or device, as such concentrations could precipitate widespread, correlated failures within the network.
Buterin envisions that the new program would compel these major entities to authentically diversify their operations, mitigating the risk of simultaneous failures while still harnessing economies of scale.
The goal is to balance the scalability advantages of large validators and the imperative for a decentralized and resilient network.
To uphold fairness, the proposal primarily impacts large validators, with safeguards in place to prevent undue burden on smaller participants.
It ensures that the punitive aspects of the program are directed where they can effectuate substantive change without disproportionately impacting those with fewer resources.
At ETHTaipei 2024, held from March 21 to 24, Buterin expounded on “rainbow staking,” a concept aimed at fostering diversity among service providers to tackle Ethereum’s centralization concerns further.
His apprehensions regarding centralization were underscored by the dominance of platforms like Lido Finance, which, at one juncture, controlled over 70% of Ethereum-staked assets despite their dispersion among numerous validators.
