Demex Daily #116: Vitalik Buterin Reveals 'Rainbow Staking' for Ethereum Decentralization

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At At the ETHTaipei 2024 event, Ethereum co-founder Vitalik Buterin introduced a new "rainbow staking" framework aimed at decentralizing Ethereum's staking process, which is currently dominated by centralized entities like Coinbase and Binance. Highlighting concerns over the centralization risks posed by such large staking providers, Buterin pointed out the barriers to solo staking, including the high economic and technical threshold of needing a minimum of 32 ETH. To address these issues, rainbow staking proposes creating differentiated tiers of staking for solo and professional stakers, distinguishing between heavy (slashable) and light (partially/non-slashable) clients, and separating the roles of capital allocators and service operators. This framework aims to enhance effectiveness across different service categories and reduce reliance on large, centralized stakers.

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Polygon has successfully implemented the Napoli upgrade on its PoS sidechain, incorporating the first-ever Rollup Improvement Proposal (RIP-7212) to enhance rollup interoperability with mainstream technology. This upgrade aligns with three major enhancements from Ethereum's Dencun hard fork, addressing block space efficiency, limiting the selfdestruct opcode, and reducing memory copying overhead. Additionally, Polygon plans to integrate EIP-4844 in its upcoming Feijoa upgrade for further fee reductions. RIP-7212, developed by the RollCall collective, introduces support for the secp256r1 curve, facilitating greater interoperability across the internet. This move is part of a broader effort towards collaborative development among Layer 2 solutions, aiming to establish them as Ethereum's primary scaling mechanism and fostering innovation within the ecosystem for mass adoption.