Vitalik Buterin Unveils Plan to Lower Ethereum Staking Requirement

Key Highlights

• Vitalik Buterin acknowledged that the 32 ETH threshold is a larger barrier than bandwidth requirements.
• Buterin proposed a temporary increase in bandwidth requirements to enhance staking accessibility and network scalability.
• The ETH price has dropped below $2,350, driven by sell-offs from Ethereum ICO-era whales.

As Ethereum co-founder Vitalik Buterin has been offloading his ETH holdings recently, he also took time to address concerns within the Ethereum staking community. In a recent message on the X platform, Buterin outlined a plan to eventually lower the minimum Ethereum staking requirement from 32 ETH to 1 ETH.

Vitalik Buterin on Ethereum Staking Requirement

Independent Ethereum educator Anthony Sassano shared insights on the significance of Ethereum’s transition to a Proof-of-Stake (PoS) mechanism. He mentioned that this transition has been a major motivating factor for his involvement in the Ethereum ecosystem, allowing users to earn staking rewards.

Sassano emphasized the importance of solo staking, stating, “Without solo staking (and the ability to run full nodes at home!), we lose the only thing that is worth anything real in this entire ecosystem – true decentralization.”

However, a user pointed out that the current minimum staking requirement of 32 ETH has been a significant barrier to wider participation in staking. In response, Buterin proposed a few adjustments:

• Lowering the staking deposit minimum from 32 ETH to either 16 or 24 ETH to enhance accessibility.
• Acknowledging that the 32 ETH requirement is a greater barrier compared to bandwidth requirements.
• Temporarily increasing bandwidth requirements in exchange for lowering the staking threshold, viewing it as a net positive for both staking accessibility and network scalability.
• Eventually aiming to drop the staking minimum to as low as 1 ETH once bandwidth and peer-to-peer issues are resolved.

Last week, Buterin also proposed the concept of ‘Ethereum Alignment’ to promote open-source value, economic unity, and synergy within the Ethereum ecosystem.

ETH Selloff Continues as ETH Price Dips Under $2,350

Ethereum (ETH), along with other altcoins, is experiencing significant selling pressure. Following sales from Buterin’s wallets, another Ethereum ICO-era whale has started to sell its holdings.

In the past two days, this ICO participant sold a total of 19,000 ETH, valued at approximately $47.5 million. Initially, this whale acquired 150,000 ETH during the ICO event in 2013, which is now worth around $358 million.

The ETH price has faced strong selling pressure, dropping over 8% on the weekly chart and currently trading below $2,350. This downward trend is affecting Bitcoin and other altcoins as the market braces for the anticipated ‘Uptober’ rally.