Vitalik Buterin voices concerns over DAOs approving ETH staking pool operators

Vitalik Buterin, the co-founder of Ethereum, has actually expressed worries relating to decentralized autonomous companies (DAOs) exerting a monopoly over the choice of node operators in liquidity staking pools.In a September 30 blog site post, Buterin problems a caution that as staking pools embrace the DAO approach for governance over node operators– who are eventually accountable for the swimming pools funds– it can expose them to potential dangers from destructive actors.” With the DAO approach, if a single such staking token dominates, that leads to a single, potentially attackable governance gadget managing a really large portion of all Ethereum validators.” Buterin highlights the liquid staking company Lido (LDO) as an example with a DAO that validates node operators.