Vitalik Buterin, co-founder of Ethereum, has expressed concerns about decentralized autonomous organizations (DAOs) having too much control over the selection of node operators in liquidity staking pools. He warns that this approach can expose staking pools to potential risks from malicious actors. Buterin suggests that relying on just one layer of protection may not be enough and proposes encouraging the use of multiple liquid staking providers to decrease the likelihood of any one provider becoming too large and posing a systemic risk. However, he cautions that relying solely on moralistic pressure to solve these issues is not a stable long-term solution.
