Vitalik Buterin Reveals Ethereum Foundation Is Staking 72K ETH Using DVT

• Vitalik Buterin says the Ethereum Foundation is using a ‘lite’ version of the Distributed Validator Technology to stake 72,000 ETH.
• He hopes it will eliminate the idea that institutions need complex infrastructure to participate in staking.

Two weeks ago, the Ethereum Foundation announced that it would start taking an active role in the governance and security of the network by staking a portion of the Ether held in its treasury. Vitalik Buterin has now revealed that it used a simplified version of the Distributed Validator Technology to stake the ETH.

According to Buterin, the Foundation’s decision to use ‘DVT-lite’ should prove to other institutions that staking can be a simple process and that they do not need to become full validators to participate.

He stated:

Currently, some participants use a single-node validator model in which they deposit the ETH and have a single validator key. Centralized staking providers are more popular, with staking pools and liquid staking protocols like Lido becoming vital players. However, these models pose a centralization risk as large providers control massive staking portions.

DVT splits control of one validator across multiple nodes, with each holding a share of the key. The nodes must then cooperate to sign validator duties. This enhances decentralization as other nodes can keep signing even if a few go offline, and decentralizing Ethereum has been one of Buterin’s targets this year, as CNF has reported.

Decentralizing Ethereum Staking

Buterin says that Ethereum must dispel the belief that running staking infrastructure “is this scary complicated thing where each person participating must be a professional.” He says that the Foundation and the ecosystem in general must fight against this idea as it goes against Ethereum’s decentralization principles.

He explained:

Buterin added that he intends to use this model soon to stake his ETH, and he hopes that more institutions holding ETH can start using it too. This would ensure the authority over staking nodes is highly distributed, he noted.

Buterin first introduced the idea of DVT-lite in January, citing Vero and the Dirk + Vouch combination as two viable methods. Vero is a multi-node validator client that’s designed to be easy to switch to from the standard single-node model. Vouch is similar, but its validator key signing is handled by Dirk, a remote key manager.