Founder Ethereum didn’t stake all his ETH, why not?

The founder of EthereumVitalik Buterin, stated in an episode of the podcast Bankless that he only has a small part of his Ethereum staked. Being the main reason for not staking all of its ether multisignature wallets.

Buterin did not stake his ETH due to complications

In a standard wallet do you usually have one private key which allows you to sign transactions and access your cryptocurrencies. If someone gets access to that private key, they can steal your money. With a multisignature wallet, this security is enhanced by requiring multiple keys. If someone gets access to one of those keys, they can’t transact without the other keys. It is one of the most important theft prevention methods in the industry.

Vitalik Buterin also uses multisignature wallets for security reasons. However, staking crypto with a multisignature wallet is too difficult an operation, according to him. That is why the founder, who has an estimated net worth of $1.4 billion in ETH owns only a small portion of its coins.

Cardano founder Charles Hoskinson is shocked by Buterin’s statement. Hoskinson says all of their Cardano (ADA) has been discontinued and he can’t believe Buterin wouldn’t take a similar approach.

EigenLayer Protocol too centralized

In the podcast, Buterin also talked about it Proprietary Layer Protocol. This protocol can be used by Ethereum stakers to move their Ethereum and Staked Ethereum to other networks. For those interested is the white paper of the protocol here to find.

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The platform will launch at the end of the third quarter of 2023. Although the protocol is not yet online, Buterin does have some points for improvement. The protocol would be too sensitive to centralization, with some receiving better treatment than others. For example, Buterin said:

“Reliable strikers would be valued more by the system than unreliable strikers. Reliable strikers would be much less likely to slashed to become.”

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