Ethereum Foundation Faces Staking Debate As Hard Forks Centralization Concerns

Ethereum co-founder Vitalik Buterin revealed that the Ethereum Foundation is evaluating new staking options but highlighted challenges in maintaining neutrality.

In a post on X, Buterin explained that regulatory concerns and the risk of contentious hard forks have influenced the foundation’s cautious approach toward staking its ETH holdings. While regulatory pressures have eased, the potential for staking to align the Ethereum Foundation with one side of a divisive network upgrade remains a critical concern.

Critics have urged the Ethereum Foundation to prioritize staking its ETH instead of selling, arguing that such a move aligns better with Ethereum’s long-term goals and sustainability. On-chain data indicates the foundation recently sold 100 ETH for $336,475, prompting suggestions from SpotOnChain to explore over-the-counter (OTC) trading for future transactions.

DCinvestor, a prominent advocate for the Ethereum ecosystem, claimed that Trump-backed World Liberty Financial appears more committed to Ethereum-based decentralized finance (DeFi) than the Ethereum Foundation.

Responding to the criticism, Josh Stark, a contributor to the Ethereum Foundation, emphasized that the organization actively uses Ethereum in its operations, countering claims of misalignment with the network’s goals.

Buterin also dismissed proposals for unstaking before a hard fork or supporting both forks as unfeasible due to Ethereum’s slashing mechanism and withdrawal rate limitations. Meanwhile, the Ethereum Foundation is undergoing leadership restructuring aimed at strengthening technical expertise and fostering better communication with community members.