Ethereum’s new staking limit is not a risk to decentralization, said the Consensys researcher
Ethereum’s PECTRA upgrade does not threaten decentralization, according to Mallesh Pai, Director of Senior Research on Blockchain software firm Consensys, which describes the update as a cleaning of the rear “busy work” scenes currently administered by validators.
During a space of May 9 Cointelegraph X, PAI Says The chances of a validator to propose a block or earn rewards remain tied to how much they hold, adding that the larger validator does not get any new advantages under upgrading:
“Rewards will continue to be proportional to the amount of ETH you have. (…) This is not the case that if you are a big validator, you will somehow have more benefits than ever before.”
Pectra is the widest upgrades of the Ethereum network Since the combination occurred in September 2022. PECTRA allows validators to bet nearly 2,048 ETHs, from the previous 32 ETH limit. The new criteria have raised community concerns about the dangers of centralization in the network.
According to Pai, Pectra upgrading was taken “a group of busy work that the network does behind the scenes and removed it.”
https://www.youtube.com/watch?v=FWO0hw_94a4
Pai noted that while there are a million technical validators in Ethereum, many are not really unique – large validators often run many virtual keys from a single physical machine. Upon upgrading PECTRA, the keys can now be combined – something he says they already see.
“In the best case, we will get nearly 30,000 validators,” he said, adding that this integration -joined to reduce the auxiliary work and provides network stakeholders to focus on what things are, such as lowering gas limits.
Related: Upgrading Ethereum Pectra adds new features – how long before ETH prices respond?
Pectra staking new limits give way to institutions
The new limit can provide way for institutions stake ethAccording to Artemiy Parshakov, vice president of institutions at Ethereum Staking Service P2P.org. “The EIP-7002 makes institutional staking easier without much danger.”
Ether staking within funds that exchanged exchange became a hot topic in 2025. Blackrock said ETF’s successful ETF is less perfect without stakingAnd many financial institutions filed for amendments to their Ether ETF to allow staking.
If approved, investors may be more inclined to buy at ETFs, as they receive produce. The Sec is not yet to rule In staking amendments.
Bloomberg ETF Analyst Eric Balchunas recently recently posted a podcast interview that if staking is approved for Ether ETF, IT will have “a small effect” on the flowers. “The bigger problem with Ethereum is performance; it just doesn’t go to a nice long rally.”
Magazine: Pectra Hard Fork Explained – Will it return to Ethereum?
