Ethereum takes a step towards distributed staking: Vitalik Buterin's proposal

Vitalik Buterin, creator of Ethereum, has recently launched an initiative to transform the staking experience on the network. His proposal aims to integrate distributed validator technology directly into the protocol, significantly simplifying staking while strengthening the network’s resistance to potential failures or attacks.

Why Simplify Staking on Ethereum?

Current staking on Ethereum presents significant challenges for large token holders and institutions. Although some projects already utilize distributed validators in their systems, these solutions tend to be complex to set up and maintain. They require intricate networks of coordination between nodes and rely on cryptographic properties that may not be optimal in the long term.

Buterin’s vision is different: instead of relying on external layers of coordination, it would be the Ethereum protocol itself that directly supports validators operating as groups. This protocol-level approach would eliminate the unnecessary complexity that currently slows down the adoption of secure staking among large holders.

Distributed Validators: How the New Architecture Works

Distributed validator technology allows a validator to operate through multiple independent machines instead of focusing on a single node. Under the proposed design, the cryptographic key is distributed among several nodes, which collectively sign validation messages. As long as more than two-thirds of these nodes act honestly, the validator remains functional without risk of penalties such as slashing or inactivity losses.

In Buterin’s specific model, a validator with sufficient ETH could register up to 16 individual keys, creating multiple “virtual identities” that behave as independent validators but are treated as a single unit by the protocol. Ethereum would only recognize actions—such as proposing blocks or signing attestations—if a predefined minimum number of these identities approve the action, according to a threshold chosen by the user.

Benefits for Large ETH Holders and Protocol Security

The proposal offers two main advantages. First, it would allow concerned stakers— including individual “whales” and institutions—to stake in a more robust setup with multiple nodes without needing to trust centralized staking providers. This is crucial for the personal security of their assets.

Second, it could significantly improve the overall decentralization of Ethereum staking. By incentivizing large holders to operate their own staking infrastructure instead of delegating to dominant services, the concentration of validator power would be reduced. Buterin emphasized that “this design is extremely simple from a user perspective,” making it easier for mass adoption even among participants with less technical experience.

Current Status of the Proposal and Future Perspectives

Buterin’s initiative remains a research proposal that requires further discussion among Ethereum developers before it can be considered for inclusion in the protocol. However, it reflects a broader push within the Ethereum community to make staking simultaneously safer, more accessible, and more decentralized without increasing technical complexity.

This development direction demonstrates Ethereum’s ongoing commitment to evolve not only in functionality but also in user experience and security for all participants. Staking will continue to be central to the network’s decentralization strategy in the coming years.