Ethereum’s new staking limit is not a risk to decentralization, says Consensys researcher
Ethereum's PECTRA upgrade does not threaten decentralization, according to Mallesh Pai, Director of Senior Research on Blockchain software firm Consensys, which describes the update as a cleaning of the rear “busy work” scenes currently administered by validators.
During a space of May 9 Cointelegraph X, PAI Says The chances of a validator to propose a block or earn rewards remain tied to how much they hold, adding that the larger validator does not get any new advantages under upgrading:
“Rewards continue to be proportional to the amount of ETH you have. […] This is not the case that if you are a big validator, you somehow have more benefits than you did before. “
PECTRA has been the widest upgrades of the Ethereum network since the incorporation in September 2022. Pectra allows validators to bet more of 2,048 ETHs, from the previous limit of 32 ETH. The new criteria have raised community concerns about the dangers of centralization in the network.
According to Pai, Pectra upgrading was taken “a group of busy work that the network does behind the scenes and removed it.”
https://www.youtube.com/watch?v=FWO0hw_94a4
Pai noted that while there are a million technical validators in Ethereum, many are not really unique – large validators often run many virtual keys from a single physical machine. Upon upgrading PECTRA, the keys can now be combined – something he says they already see.
“In the best case, we will get nearly 30,000 validators,” he said, adding that this integration -joined to reduce the auxiliary work and provides network stakeholders to focus on what things are, such as lowering gas limits.
Related: Upgrading Ethereum Pectra adds new features – how long before ETH prices respond?
Pectra staking new limits give way to institutions
The new limit can provide way for Stake ET institutions, according to Artemiy Parshakov, Vice President of Ethereum Staking Service institutions P2P.org. “The EIP-7002 makes institutional staking easier without much danger.”
Ether staking within funds that exchanged exchanges became a hot topic in 2025. BlackRock said ETF's successful ETF was less perfect without caution, and many financial institutions filed for amendments to their ETFs holding simple.
If approved, investors may be more inclined to buy at ETFs, as they receive produce. The SEC has not yet been in charge of staking changes.
Bloomberg ETF's analyst Eric Balchunas recently has recently been posting a podcast interview that if the staking is approved for ETFs, it will have a “little effect” on the flowers. “The bigger problem with Ethereum is performance; it just doesn't go to a nice long rally.”
Magazine: Pectra Hard Fork Explained – Will it return to Ethereum?
