“Restaking” involves reusing staked Ether to earn fees and rewards. The restaked tokens can then help secure and validate other protocols. But many fear restaking could disrupt Ethereum’s chain itself.
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Ethereum restaking: Blockchain innovation or dangerous house of cards?
Ethereum restaking — proposed by middleware protocol EigenLayer — is a controversial innovation over the past year that has some of the brightest minds worried about the potential ramifications.
Restaking involves reusing staked or locked-up Ether tokens to earn fees and rewards. The restaked tokens can then help secure and validate other protocols.
Proponents believe restaking can squeeze additional security and rewards from already staked ETH and grow the crypto ecosystem in a healthier way based on Ethereum’s existing trust mechanisms. Restaking could serve as a security primitive for exporting Ethereum’s trust generated by its validators to other projects.
Yet Ethereum co-founder Vitalik Buterin and a number of key devs worry that restaking is a house of cards that will inevitably tumble. Some of those Ethereum devs have even proposed a fork to head off restaking platform EigenLayer.
Why the project’s founders promote “trust as a service” from Ethereum without the Ethereum founder and others’ willingness to participate is still to play out. Will the whole concept result in an Ethereum fork to protect the network from catastrophic failure?
Ethereum restaking: Blockchain innovation or dangerous house of cards?
Ethereum restaking — proposed by middleware protocol EigenLayer — is a controversial innovation over the past year that has some of the brightest minds worried about the potential ramifications.
Restaking involves reusing staked or locked-up Ether tokens to earn fees and rewards. The restaked tokens can then help secure and validate other protocols.
Proponents believe restaking can squeeze additional security and rewards from already staked ETH and grow the crypto ecosystem in a healthier way based on Ethereum’s existing trust mechanisms. Restaking could serve as a security primitive for exporting Ethereum’s trust generated by its validators to other projects.
Yet Ethereum co-founder Vitalik Buterin and a number of key devs worry that restaking is a house of cards that will inevitably tumble. Some of those Ethereum devs have even proposed a fork to head off restaking platform EigenLayer.
Why the project’s founders promote “trust as a service” from Ethereum without the Ethereum founder and others’ willingness to participate is still to play out. Will the whole concept result in an Ethereum fork to protect the network from catastrophic failure?
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Reddit to wind down blockchain-based rewards service ‘Community Points’
Reddit has said it will soon shutter its long-running, blockchain-based rewards service “Community Points,” citing scalability concerns.
In an official Oct. 17 announcement in the r/cryptocurrency subreddit, a Reddit team member said while the platform saw “some future opportunities for Community Points, there was no path to scale it broadly across the platform.”
The Community Points service, including the special memberships feature, will be wound down on Nov. 8. “At that point, you’ll also no longer see Points in your Reddit Vault nor earn any more Points in your communities,” the Reddit team member wrote.
Reddit’s Community Points will be shuttered on Nov. 8. Source: RedditFirst launched in May 2020, the community points feature rewarded users with points for positive engagement in certain subreddits and was designed to incentivize higher-quality content on the platform.
The points were Ethereum-based ERC-20 tokens stored in the platform’s in-house crypto wallet service dubbed the “Reddit Vault.”
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