blog post <\/a>dated September 30th, Buterin highlighted issues with both platforms. He pointed out that Lido's approach, which involves its decentralized autonomous organization (DAO) whitelisting node operators, and Rocket Pool's method, requiring users to deposit 8 ETH to operate a node, have distinct challenges.<\/p>\n\n\n\nLido provides users with a derivative token known as \"staked ETH\" or stETH to represent the staked amount's value. On the other hand, Rocket Pool allows users to stake ETH through permissionless nodes.<\/p>\n\n\n\n
The problem with these protocols<\/h2>\n\n\n\n
Buterin expressed concern that Rocket Pool's approach could potentially enable malicious actors to execute a 51% attack on the network. Where users bear most of the associated costs, conversely, Lido's DAO approach might create a scenario where a dominant staking token gains control of a substantial portion of Ethereum's validators, posing a risk to the network's security.<\/p>\n\n\n\n
Buterin acknowledged that protocols like Lido have implemented safeguards to address these issues. However, he suggested that a single layer of defense might not suffice. To mitigate this risk, he proposed encouraging ecosystem participants to diversify across various staking pool operators in the short term. This diversification would reduce the risk of a single provider becoming overly dominant and posing a systemic risk to the blockchain.<\/p>\n\n\n\n
Additionally, Buterin suggested the possibility of implementing protocol-level features to counteract centralization in various areas. He referred to the concept of \"minimal viable enshrinement\" as a potential middle-ground solution. This approach would address the challenges without being overly restrictive. For instance, rather than fully enshrining a liquid staking system, one could consider adjusting staking penalty rules to make trustless liquid gambling more feasible.<\/p>\n","post_title":"Ethereum Co-Founder Vitalik Buterin Raises Concerns Over Lido And Rocket Pool Staking Models","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ethereum-co-founder-vitalik-buterin-raises-concerns-over-lido-and-rocket-pool-staking-models","to_ping":"","pinged":"","post_modified":"2023-10-05 00:35:13","post_modified_gmt":"2023-10-04 13:35:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13692","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13655,"post_author":"15","post_date":"2023-10-01 22:39:20","post_date_gmt":"2023-10-01 11:39:20","post_content":"\n
Crypto exchange Binance is selling <\/a>its entire Russian business to CommEX as part of its exit strategy. The move is due to compliance concerns.<\/p>\n\n\n\nBinance's Chief Compliance Officer, Noah Perlman, stated that operating in Russia doesn't align with their compliance strategy. \"As we look toward the future, we recognize that operating in Russia is incompatible with Binance's compliance strategy,\" <\/em>said Perlman.<\/p>\n\n\n\nBinance said on Wednesday that with the sale, it would exit the country altogether. It also says that \"Binance will sunset all exchange services and business lines in Russia\"<\/em> over the next several months.<\/p>\n\n\n\n\"Unlike similar deals from international companies in Russia, Binance will have no ongoing revenue split from the sale, nor does it maintain any option to buy back shares in the business,\" <\/em>the release said.<\/p>\n\n\n\nIs users' funds safe?<\/h2>\n\n\n\n
The off-boarding process will take up to one year. All assets of existing Russian users are safe and securely protected. <\/p>\n\n\n\n
An organized user migration process will take place. Binance and CommEX will collaborate to guide users on transferring their assets to CommEX. Some newly registered Russian KYC users will be directed to CommEX immediately. Binance will gradually discontinue all exchange services and business operations in Russia over the next few months. Efforts will be made to ensure a seamless user experience during this transition.<\/p>\n\n\n\n
While the financial terms of the agreement won't be disclosed, it's crucial to highlight that this sale marks Binance's complete withdrawal from the Russian market. In contrast to similar deals involving international companies in Russia, Binance will not receive any ongoing revenue share from the sale, nor will it have the option to repurchase shares in the business.<\/p>\n","post_title":"Binance Is Exiting The Russian Market Due To Compliance Concerns","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-is-exiting-the-russian-market-due-to-compliance-concerns","to_ping":"","pinged":"","post_modified":"2023-10-01 22:39:32","post_modified_gmt":"2023-10-01 11:39:32","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13655","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
