hekmat

SBC's annoyingly militant decentralization maxi

Opinions always my own.

[hekmat @HekmatCrypto]

@benjaminion_xyz legend.

[hekmat @HekmatCrypto]

@notlouisck Ethereum takes that a step further by allowing a trustless financial system that cuts out middlemen with math

There's faaaar more to the rabbit hole but the option of decentralised money/finance offers a means of resistance against malicious government(s) and more.

[hekmat @HekmatCrypto]

@notlouisck I'll be right back, making a cryptocurrency with 40 'F's as the name.

X isn't the best place to cover nuance but I'll start by saying your framing of bitcoins success is off.

The $ as a geopolitical tool isn't being replaced. But btc offers safe haven from $ debasement.

[hekmat @HekmatCrypto]

@lowpolyduck These get worse and worse with no bottom in sight

Your dadding is levelling up

[hekmat @HekmatCrypto]

This is exactly the type of hubris that can lead to systemic failure.

I, a complete dumbass, can outline multiple scenarios where Lido NOs could rationally attack the chain.

Is it likely? Probably not.

"Probably not" IS NOT GOOD ENOUGH for a global finance layers security.

[gusakov.eth | Lido @d_gusakov]

@ribeiroo_la @banteg NOs will never agree on doing harm to the chain so no risk of not attesting

[jasperthefriendlyghost.eth @drjasper_eth]

It boils my blood that @LidoFinance thinks fit to go against one of the founding lido principles set forward by @paradigm.

Governance is and always has been the existential risk that Lido presents. Dual governance is a bandaid solution, not any kind of permanent one and is very fallible.

As long as LDO governance can control the validator registry, LDO should not exceed roughly 33% of the network. There is no hard line here because the threat isn’t based on any hard line.

The threat is that LDO slowly gains a subversive power over Ethereum due to its ability to threaten node operators with the boot, a very powerful threat that @gakonst rightfully points out all those years ago.

The staking router and the coming forced exits upgrades will further exacerbate the issue. Both will increase the power of LDO token holders over the node operators. Forced exits especially worries me as it has been touted as their solution for keeping their permissioned node operators in line.

Governance is a weakness, the existence of a threat is the problem itself. We cannot rely on LDO holders to be good stewards, not even with stETH veto power.

The apathy and bureaucracy of DAO governance is too powerful a deterrent for vetos to reliably work. The only solution is to remove the threat completely.

Georgios goes on to write “If said pool is sufficiently governance-minimized, it could possibly win the entire market without causing any systemic risk for Ethereum.”

Where’s the minimization frens???

ln April of 2022 I published a now deleted thread called “A Case against stETH” where I explained why neither DVT nor social scores for permisionless node operators would work to scale their node operators set fast enough for the rate that they were growing their stake.

The entire thread stands true today. The recent @nethermind report suggests using a Kleros court to judge Sybil cases. That’s a joke when nation states are out here human trafficking and dedicating billions to hacking/exploits/evading Sybil detection. If Lido messes up their Sybil implementation, we could find ourselves with 10-15% of all Eth staked sitting in North Korea in a Sybil farm of node operators with 0 capital bond.

Lido should self limit not because of any consensus attacks, they should self limit because $stETH is growing faster than they can decentralize and research ways to safely introduce permisionless nodes without jeopardizing the network.

Don’t let their campaign fool you, @LidoFinance has not shed any of its governance functionality—in fact it plans on growing it.

This is the danger of $stETH dominance.

[hekmat @HekmatCrypto]

@MacroMate8 If I literally didn't understand my employer's business, I wouldn't be posting about it loudly on twitter.

u do u tho boo

[hekmat @HekmatCrypto]

@d_gusakov @harrycanuck @banteg Also, that not being the complete set of addresses is not a valid argument in any way.

You'll never have 100% voting participation.

[hekmat @HekmatCrypto]

@d_gusakov @harrycanuck @banteg I didnt say that fren. I said 3 addresses carried the 99.9 % vote. Not that 3 addies made 99.9% OF the vote.

A little confusingly worded, I'll grant you. Does this seem healthy for custodians of the majority of staked eth and are aggressively targeting more?

[hekmat @HekmatCrypto]

@d_gusakov @harrycanuck @banteg You misunderstood me ser, replied on the other post.

[hekmat @HekmatCrypto]

@d_gusakov @harrycanuck @banteg *crickets*

[hekmat @HekmatCrypto]

@d_gusakov @harrycanuck @banteg The top 3 daddies here controlled more than 50 % of the vote.

Very decentralised, much wow.

[hekmat @HekmatCrypto]

@sachayve @harrycanuck @banteg If I take the time to respond in detail, will you do so in kind?

I'm just a smol brain but so far my many debates with lido peeps results in them vanishing when presented with an inconvenient question.

I'm polite I promise ;)

[hekmat @HekmatCrypto]

Nothing can convince me to use stETH.

BUT self limiting would directly lead to me making $LDO my 2nd - 4th largest token position

They don't even need to give up profit to do this...

I would be sooooo bullish on a lido aligned with ethereum.

[hekmat @HekmatCrypto]

@d_gusakov @harrycanuck @banteg Lol top 3 daddies.

[hekmat @HekmatCrypto]

@banteg Lidos marketshare is 100% OBJECTIVELY a bad thing for ETH

How bad is certainly up for reasonable debate. Is it meh or significant threat?

Regardless, I dont understand supposed cypherpunks simping for lido over ethereums health

Particularly when LDO can limit without losing $

[hekmat @HekmatCrypto]

@banteg It's not silliness at all. It's a real attack vector on ethereums credible neutrality.

Acting like the node operators don't share common factors that can be exploited is wrong. Not to mention social attack vectors.

Lido aren't evil NOW but what about 50 years?

[hekmat @HekmatCrypto]

@d_gusakov @harrycanuck @banteg 3 addresses carried the 99.9+% vote to not self limit

[hekmat @HekmatCrypto]

@tbr90 @twobitidiot Imagine thinking that ethereum is beholden to stables that can be bridged to whatever chain offers redemption anyway.

Weak take is weak.