Topic: SEC's wildest move on Staking business | Go Non Custodial Staking for security (Read 113 times)

Well, whales do have the power over staking,  since the power goes to the token that has the most number.  If they have enough whales can eve break any market when they dump.  Aside from that most validators have huge amount of token so it is indeed the one who has the number of token has the power to move the market

The issue of whales having more power in Proof of Stake scheme for now is implicit of that system, as far as I know, regardless whether we are talking about a decentralized or centralized staking interface. I have not read about the functionality of the staking pools, if the code is good it should not be any problem with exploits.

The main problem with those pools is the fact that retailer Ethereum users won't get much passive income out of it so not many of them will participate.

The issue of whales having more power in Proof of Stake scheme for now is implicit of that system, as far as I know, regardless whether we are talking about a decentralized or centralized staking interface. I have not read about the functionality of the staking pools, if the code is good it should not be any problem with exploits.

The main problem with those pools is the fact that retailer Ethereum users won't get much passive income out of it so not many of them will participate.

The only problem I see with non custodial staking is that it will lead to centralization over time or not? Won't the rich get richer and gain increasing network dominance? If those who stake the most also re-stake their gains, they'll start dominating the network. It shouldn't be too much of a problem as that also increases their skin in the game, but centralization is still one of the results.

The financial requirement is pretty high I think in order to be able to stake, but that's where those pools come into play. However, does participating in pools compromise individual security?

It was expected, to be honest. In the end, it is nature of government to make things as difficult as possible to decentralization.
This will only push people to find decentralized solutions, however, last time I checked one needed an important amount of money to become a validator and the average yield was in the order of 4%.

So I assume staking is mostly aimed to those who feel bullish on Eth in the long term anyways and have a lot of it.

-cut-
Though SEC is performing their devil part here, we should not be afraid of their actions. They can only thrive their rules when we are in the centralized market. They can not enter their jurisdiction into the decentralized market.

I think that they actually make the things more simple and clear. We were saying if for too long and nobody listened: don't keep too much money and for too long at exchanges, every extra dollar and every extra minute is a risk.
All those staking rewards, all the high withdrawal fees were/are games to convince people keep their money in CEX pockets, then the CEX can do a lot of things, from attempts to influence the markets to using fractional reserve and use the funds for something else.

People forget that exchanges are not banks. At least in EU, if a bank fail, the government will reimburse the funds up to EUR 100k/person/bank. This doesn't happen with exchanges, many of them are registered under odd jurisdictions too, but people still don't care.

Bitcoin is about not having to trust other people or institutions (and the legit/correct altcoins are also following the same idea). So what SEC does is.. right, for a change.

I think that they actually make the things more simple and clear. We were saying if for too long and nobody listened: don't keep too much money and for too long at exchanges, every extra dollar and every extra minute is a risk.
All those staking rewards, all the high withdrawal fees were/are games to convince people keep their money in CEX pockets, then the CEX can do a lot of things, from attempts to influence the markets to using fractional reserve and use the funds for something else.

People forget that exchanges are not banks. At least in EU, if a bank fail, the government will reimburse the funds up to EUR 100k/person/bank. This doesn't happen with exchanges, many of them are registered under odd jurisdictions too, but people still don't care.

Bitcoin is about not having to trust other people or institutions (and the legit/correct altcoins are also following the same idea). So what SEC does is.. right, for a change.

With the recent update, SEC's seems to be complicating things in the crypto world.

Balancing Regulation and Innovation in the Crypto World: Staking at the Crossroads
Staking, the act of retaining a specific amount of a particular cryptocurrency in a wallet and taking part in the validation of transactions on the network, is one of the most discussed topics in the digital asset world today. And for good reason. Staking has been promoted as the answer to several challenges facing the cryptocurrency ecosystem, including scalability, decentralization, and security.

But just as staking was beginning to gain momentum, the threat of overregulation rears its ugly head. The SEC’s recent action against staking services has once again spotlighted the issue of regulation versus innovation. While regulation is vital for stability and security, excessive regulation can hinder innovation and curb the potential for future growth.

It’s a tricky balance, but one that the SEC seems to have gotten wrong with their latest crackdown on Kraken’s staking program. This heavy-handed approach only serves to drive innovation offshore to less regulated regions, where these opportunities will be accessible. And who suffers the most from this? The American people are being deprived of the benefits of a thriving crypto ecosystem.

The truth is, staking is a vital piece in the puzzle of the future of the crypto world. The rewards of staking, such as increased security, decentralization, and profitability, make it an important tool for building a better, more secure, inclusive, and profitable crypto ecosystem. But overregulation threatens to disrupt all of that.

So, what can we do about it? Well, we can start by recognizing the importance of staking and speaking out against overregulation. We need to make our voices heard and let the powers that be know that staking is here to stay and an essential part of the future of the crypto world.

Don’t be discouraged by the SEC’s latest move. Get involved in staking and reap the rewards for yourself. And who knows, you might even help shape the future of crypto in the process. Staking with a centralized exchange (CEX) or custodial service may seem like the convenient choice, but why trust a CEX with your precious assets when you can be the master of your own assets with noncustodial solutions? That’s right, with wallets and staking pools, you can stake your ethereum (ETH) or other cryptocurrencies without relying on a custodial service or exchange.