DeFi

Rocket Pool Proposes To Self-Limiting Its Liquid Staking Growth

Key Points:

  • Rocket Pool has proposed a set of actions to address the dominance and staking environment of the network.
  • The proposal outlines several guiding principles for Rocket Pool, including acting in the best interest of Ethereum’s health and considering the long-term impacts of its choices.
In order to address the dominance and staking environment of the network, Rocket Pool, a liquid staking protocol on Ethereum, has proposed a number of measures.

By preventing a single point of failure and restricting the size of the Rocket Pool, the proposal is intended to ensure the security of the Ethereum network.

The proposal provides a number of guiding principles for Rocket Pool, such as operating in Ethereum’s best interest and thinking about the long-term effects of its decisions. In addition to giving its Node Operators the freedom to make meaningful decisions and quit the system if they find it unacceptable, Rocket Pool will limit its expansion if it interferes with Ethereum’s decentralization.

Rocket Pool is a decentralized node network that opens up staking opportunities to those who lack the technical expertise or adequate assets required to stake ETH. Its goal is to help users who lack the minimal number of ETH tokens needed to stake as well as those who lack the technical know-how necessary to operate a node.

Even if they use the protocol, Ethereum investors who want to stake are still constrained by the lengthy commitment of locking up tokens. All assets are locked once staked until Ethereum’s Proof-of-Stake deployment Phase 2.

Investors can bet with as little as 16 ETH instead of the required minimum commitment of 32 ETH. Additionally, Rocket Pool automates the entire process, and the platform manages all validators without requiring user participation.

Just after Lido, Rocket Pool is the second-largest Ethereum liquid staking system. However, it still has a market share of only 3.5% in the liquid staking industry. The community rejected a similar self-limiting proposal made by Lido, the largest liquid staking system, last year. The self-limiting plan has received a majority of the vote so far in the protocol. The election will be over on February 13, 2023.

ISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

24 minutes ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

2 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

2 hours ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

2 hours ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

3 hours ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

4 hours ago

This website uses cookies.