- Vitalik Buterin wants layer 2s to be decentralized for him to recognize them
- Buterin had in 2022 described basic characteristics of a decentralized network
- Buterin said that the criterion applies even to projects that he has invested in
Ethereum co-founder Vitalik Buterin isn’t happy with how layer 2 networks are casually handling decentralization and wants them to improve it. Buterin has asked Ethereum layer twos to adhere to the decentralization criterion he released in 2022 for them to be truly decentralized. According to the Ethereum co-founder, the rules apply even if his friends run the projects or he has a stake in them, indicating that Buterin is fed up with blockchain projects that are largely centralized despite claiming to honor the blockchain spirit.
“Stage 1 or Bust”
In an X post, Buterin said that he’ll stop giving poorly decentralized layer 2s attention on his blogs, talks, and other forums. According to him, a network has to at least attain stage 1 decentralization.
I take this seriously. Starting next year, I plan to only publicly mention (in blogs, talks, etc) L2s that are stage 1+, with *maybe a short grace period* for new genuinely interesting projects.
It doesn’t matter if I invested, or if you’re my friend; stage 1 or bust.
Multiple… pic.twitter.com/4cGxgsfmUc
— vitalik.eth (@VitalikButerin) September 12, 2024
To attain this badge, a layer 2 protocol needs to have at least 26% of its decision-making team made up of entities outside the project’s core team. It also needs to put a “75% threshold on council to override the proof system,” this means that a network needs 75% of its members to agree to make a decision outside the normal procedure.
According to Buterin, “it doesn’t matter if [he] invested, or you’re [his] friend; stage 1 or bust.” This criterion, however, won’t apply to new and interesting projects which will be given a “short grace period” to toe the line.
DeFi Projects Need to be Truly Decentralized
Buterin noted that the intervention is meant to pressure blockchain-based projects to turn to cryptographic trust instead of “being glorified multisigs.” The move comes two weeks after the Ethereum co-founder clarified that he isn’t against DeFi projects provided they’re truly decentralized.
It also comes a week after he said that he isn’t a fan of the “sign in with Google” feature but noted that it’s likely to have a positive effect on crypto adoption.
With Buterin increasing pressure on blockchain projects to increase decentralization, it’s to be seen whether the projects will strive to become “stage 1” certified.
