According to Cointelegraph, Ethereum co-founder Vitalik Buterin has raised concerns about decentralized autonomous organizations (DAOs) potentially monopolizing the selection of node operators in liquidity staking pools. In a September 30 blog post, Buterin warns that adopting the DAO approach for governance over node operators, who are responsible for the pool's funds, could expose them to risks from malicious actors.
Buterin cites staking protocol Lido (LDO) as an example of a DAO that whitelists node operators, but stresses that relying on just one layer of protection may not be enough. He acknowledges that protocols like Lido have implemented safeguards against this, but one layer of defense may not be sufficient.
On the other hand, Buterin explains that Rocket Pool allows anyone to become a node operator by placing an 8 Ether (ETH) deposit, which is currently worth around $13,406. However, this approach also has its risks, as it allows attackers to 51% attack the network and force users to bear most of the costs. To address this issue, Buterin suggests encouraging ecosystem participants to use a variety of liquid staking providers, which would reduce the likelihood of any one provider becoming too large and posing a systemic risk. However, he cautions that relying too much on moralistic pressure to solve problems may be an unstable long-term solution.
