At least five Ethereum liquid staking providers have either imposed or are planning to impose a self-limit rule in which they commit not to possess more than 22% of the Ethereum staking market – a move considered as ensuring the Ethereum network remains decentralized.

According to Ethereum core developer Superphiz, among the Ethereum staking providers that have already committed or are trying to adhere to the self-limit rule are Rocket Pool, StakeWise, Stader Labs, and Diva Staking. Puffer Finance, another liquid staking firm, has also stated its support for the self-limit.

The suggestion is apparently intended to address worries about Ethereum staking becoming more centralized.

Finality refers to the point at which transactions on a blockchain are considered immutable, implying that transactions within a block cannot be changed.

Superphiz presented the notion in May 2022, when he questioned whether a staking pool would be ready to prioritize the chain's health over its own profits.

Interestingly, the largest Ethereum liquid staking provider, Lido Finance, voted unanimously in June not to self-limit.

"They have expressed an intention to control the majority of validators on the beacon chain," Superphiz stated in a post on August 31.

According to Dune Analytics, Lido now dominates the Ethereum staking industry, accounting for 32.4% of all staked Ether, whereas Coinbase accounts for only 8.7% of the market.

Sources:

https://cointelegraph.com/news/ethereum-staking-services-agree-self-limit-validators

https://cryptonews.com/news/major-ethereum-staking-providers-promise-not-own-more-than-22-of-validators.htm

https://twitter.com/langerstwit/status/1525343792772939777

https://twitter.com/stakewise_io/status/1525225299146944513

https://twitter.com/puffer_finance/status/1675942120157491201

https://twitter.com/superphiz/status/1697149459769999860

https://www.staderlabs.com/blogs/ethereum/staders-ethx-power-pledge/

https://t.co/yWG0DyUCNN