Ethereum co-founder Vitalik Buterin counters Galaxy Digital's reservations over the Ethereum staking system.
In a recent turn of events, Galaxy Digital, a leading crypto investment firm, has made headlines for its significant investment in Solana, marking the largest institutional Solana investment of the year. The firm, in partnership with Multicoin Capital and Jump Crypto, has purchased over $1.5 billion worth of Solana's native cryptocurrency, SOL. This move also made Galaxy Digital the first Nasdaq-listed firm to tokenize its shares on the Solana blockchain.
However, this Solana-centric move has sparked controversy within the Ethereum community, as Galaxy Digital's head of DeFi, Michael Marcantonio, publicly criticized the length of the Ethereum staking exit queue. Marcantonio compared Ethereum unfavorably to Solana, which requires only two days to unstake assets, while the Ethereum staking exit queue has stretched to a staggering 45 days.
The Ethereum network, currently boasting more than one million active validators, has 35.6 million ETH staked, representing almost 30% of the entire supply. Despite this, the Ethereum exit queue has decreased slightly but remains high at 2.5 million ETH, with a significant portion attributable to Kiln Finance following an exploit.
Ethereum co-founder Vitalik Buterin addressed these growing concerns, comparing staking on Ethereum to "a soldier deciding to quit the army," and suggesting that the process involves "taking on a solemn duty to defend the chain." Buterin cautioned that reducing constants would make the Ethereum chain "much less trustworthy" for nodes that don't go online frequently.
The criticism from Galaxy Digital and Marcantonio's comments have sparked strong reactions within the Ethereum community. Anthony Sassano, an Ethereum educator, recommended ceasing business with Galaxy Digital due to Marcantonio's lack of understanding of the industry, stating that deleting tweets does not change this fact.
Gabriel Shapiro, a crypto lawyer, criticized the deletion of Marcantonio's tweets, calling it "insanely gaslighty psyops" and wishing they had remained visible because they "only made Ethereum look great both technologically and culturally."
The controversy between Ethereum and Solana underscores the ongoing competition between different blockchain ecosystems and the technical tradeoffs each platform makes regarding security, speed, and user experience. As the crypto landscape continues to evolve, it will be interesting to see how these platforms adapt and compete in the future.
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