Ethereum's new staking limit is not a risk to decentralization, says Consensys researcher

Mallesh Pai, senior research director at Consensys, believes the Pectra upgrade does not threaten Ethereum's decentralization. The upgrade is a "cleanup" of validators' "busy work" and does not give larger validators an advantage. Validators' chances of proposing a block or earning rewards remain tied to the amount of ETH they hold. The Pectra upgrade allows validators to stake up to 2,048 ETH, up from 32 ETH, which has raised concerns about centralization. However, Pai notes that many validators are not truly distinct and can now be consolidated, reducing auxiliary work. The upgrade could pave the way for institutions to stake ETH, making it easier to integrate without taking too much risk. The new limit could also lead to the approval of Ether ETFs) that allow for staking, which could attract more investors. The SEC has yet to rule on staking amendments. Bloomberg ETF analyst Eric Balchunas believes that if staking were approved for Ether ETFs, it would have a small impact on inflows, citing Ethereum's performance as a bigger issue. Overall, the Pectra upgrade aims to improve Ethereum's network efficiency and make it more attractive to institutions and investors.