Ethereum co-founder Vitalik Buterin has continued his weeklong intervention on how the blockchain network’s Proof-of-Stake (PoS) mechanism can be further improved with a new essay titled “Possible Futures of the Ethereum Protocol, Part 3: The Scourge.”

In this post, Buterin discussed how Ethereum must evolve to maintain decentralization while addressing security threats.

Tackling Ethereum Staking Centralization Risks

Buterin pointed out that the Scourge is a proposed upgrade aimed at reducing the risk of centralization within Ethereum’s staking process. He explained that factors such as block construction centralization, economic incentives, and the 32 ETH staking minimum contribute to these risks. Additionally, hardware requirements for participation further intensify the problem.

“One of the biggest risks to the Ethereum L1 is proof-of-stake centralizing due to economic pressures. If there are economies-of-scale in participating in core proof of stake mechanisms, this would naturally lead to large stakers dominating, and small stakers dropping out to join large pools,” Buterin wrote.

Buterin’s proposed solution within the Scourge phase is to break up the block production process. This would shift the responsibility of transaction selection from builders to stakers, leaving builders only with the task of organizing transactions and including some of their own.

 Read more: A Deeper Look into the Ethereum Network

“The leading solution is to break down the block production task further: we give the task of choosing transactions back to the proposer (ie. a staker), and the builder can only choose the ordering and insert some transactions of their own. This is what inclusion lists seek to do,” the Ethereum co-founder stated.

Buterin also discussed alternative solutions like the Multiple Concurrent Proposers (MCP), which introduce systems like BRAID. According to him, the MCP schemes distribute the block production process across multiple entities. This lowers the barrier to participation and makes it harder for any single entity to dominate staking.

Addressing Over-Staking Concerns

Buterin also raised concerns about potential “over-staking” in the Ethereum network. Currently, around 30% of the total ETH supply is staked. Buterin cautioned that if this figure rises too high, ETH staking could become a near-mandatory obligation for ETH holders, driving more stakers to centralized platforms.

To counter this, Buterin suggested adjusting Ethereum’s issuance curve. This way, staking returns diminish if the total amount of staked ETH exceeds a certain threshold. This adjustment would prevent a small group of large stakers from gaining excessive influence over the network.

Read more: Staking Crypto: How to Stake Coins and Grow Your Income

In conclusion, Buterin’s proposals in the Scourge phase reflect his focus on maintaining Ethereum’s decentralization as it scales. By addressing the centralization risks of both staking and block production, he aims to safeguard the long-term security and openness of the Ethereum blockchain.

In 10 days, modular blockchain project Celestia (TIA) will release 80.77% of its circulating supply, valued at $1.05 billion. This impending token release has sparked concerns about potential selling pressure, which could affect TIA’s price.

BeInCrypto explores how the altcoin, which has experienced volatile price swings in recent days, might perform before the event.

Celestia Faces Selling Pressure as Huge Token Unlock Approaches

For Celestia, this upcoming token release represents one of the largest since the project’s inception. As a result, TIA’s price is expected to face significant volatility in the lead-up to the event.

Currently, Celestia’s price is $5.95 and has been hovering around that same region for some time. However, based on the signal from the Chaikin Money Flow (CMF), the altcoin might drop below $5.

Read more: Top 5 Blockchain Protocols For End-to-End Transaction Security

The CMF is a volume-weighted oscillator that tracks the flow of money into or out of a cryptocurrency over a set period. It’s commonly used to identify trends, spot potential reversals, and gauge overbought or oversold conditions.

Furthermore, the indicator oscillates above and below zero, with positive readings indicating an uptrend and negative readings indicating a downtrend. As seen below, the CMF reading is in thhe negative region, suggesting that TIA’s price might soon experience a significant downturn.

TIA Price Prediction: Bears to Put It Below $4

From a technical perspective, the TIA/USD chart shows the formation of a head and shoulders pattern. This pattern is a chart formation that signals a potential bullish-to-bearish trend reversal in a cryptocurrency’s price.

Typically, when an asset’s price drops below the neckline of the pattern, a significant correction appears. On the other hand, a rise above the neckline invalidates this prediction. Based on the chart below, Celestai’s price looks likely to drop below the neckline at $4.73.

If that happens, the token’s value could sink to $3.87. However, if bulls defend the token from declining below $4.73, the drawdown might not happen. 

Read more: 10 Best Altcoin Exchanges In 2024

In that case, TIA could surge to $7.30, and after the supply shock, the altcoin might rise to $10.40 if buying pressure increases. 

Token unlock involves releasing tokens that were previously blocked under fundraising terms. Projects carefully schedule these releases to avoid market pressure and prevent a drop in token prices.

Although no significant token unlocks are scheduled for the upcoming week, here are five events to keep an eye on.

Cardano (ADA)

• Unlock date: October 22
• Number of tokens unlocked: 18.53 million ADA
• Current circulating supply: 35.72 billion ADA

Cardano focuses on sustainability, security, and scalability for decentralized applications and smart contracts. On October 22, the network will unlock over 18 million ADA, allocating these tokens to staking and the treasury fund reserve. This action strengthens the staking ecosystem and supports Cardano’s long-term development.

Read more: How To Buy Cardano (ADA) and Everything You Need To Know

SpaceID (ID)

• Unlock date: October 22
• Number of tokens unlocked: 18.49 million ID
• Current circulating supply: 430.50 million ID

Space ID is a universal decentralized identity protocol that connects people, assets, and dApps across various blockchains. It allows users to use a single domain name to represent their identity across different applications and networks.

On October 22, the project will unlock over 18 million ID tokens and allocate them between the Space ID Foundation, ecosystem fund and community.

Read more: Decentralized Identity and the Future of Web3: What To Know

EigenLayer (EIGEN)

• Unlock date: October 22
• Number of tokens unlocked: 1.29 million EIGEN
• Current circulating supply: 186.58 million EIGEN

Ethereum-based restaking protocol EigenLayer started October by listing its EIGEN token on major exchanges. On October 22, the project will unlock 1.29 million EIGEN, valued at $4.56 million as of this writing. The team has earmarked these tokens for future community initiatives, making it unlikely that the unlock will significantly impact the token’s price.

Read more: Ethereum Restaking: What Is it and How Does it Work?

Ethena (ENA)

• Unlock date: October 23
• Number of tokens unlocked: 12.86 million ENA
• Current circulating supply: 2.74 billion ENA

Ethena is a synthetic currency protocol working on Ethereum. It provides a native cryptocurrency solution independent of traditional banking, and also offers global users a dollar-denominated savings instrument called the ‘Internet Bond.’

The ENA token enables holders to vote on governance proposals. On October 23, the project will unlock almost over 12 million ENA dedicated to ecosystem development.

Read more: What Is Ethena Protocol and its USDe Synthetic Dollar?

Yield Guild Games (YGG) 

• Unlock date: October 27
• Number of tokens unlocked: 14.08 million YGG
• Current circulating supply: 386.40 million YGG

Yield Guild Games (YGG) is a gaming community that operates on a play-to-earn model. It brings together gamers worldwide, enabling them to earn cryptocurrency rewards by participating in various blockchain games. YGG invests in NFT assets, such as in-game items and virtual land, making these available for guild members to borrow and use in their gaming endeavors.

In a few days, Yield Guild Games will unlock over 14 million YGG. These tokens will be distributed across the community, founders, investors, and the treasury, fueling the guild’s growth and ecosystem development.

Read more: Top 6 Crypto Gaming Coins To Buy in 2024

Next week’s smaller cliff unlocks include Galxe (GAL), Acala (ACA), and Euler (EUL), among others, with a combined value surpassing $99 million.

While many see token unlocks as bearish, a well-structured schedule can actually support a project’s long-term success. Tied to key milestones and development, unlocks can motivate the team, engage the community, and drive ecosystem growth.