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Top Exchanges' ETH Staking Practices Contribute to Ethereum Censorship

  • Investors are expected to determine the extent to which the Ethereum ecosystem complies with regulations.

  • As per reports, nearly 60% of all post-Merge Ethereum blocks agree with the OFAC sanctions imposed by the US.


26 Dec 2022 By : COIN GABBAR
Top Exchanges' ETH S

Compliance with federal sanctions has a negative impact on the global reach of most crypto ecosystems. However, when it comes to Ethereum, investors wield significant power over the ecosystem's level of compliance.

Nearly 60% of all post-Merge Ethereum blocks comply with US sanctions imposed by the Office of Foreign Assets Control (OFAC). While the crypto community is opposed to this transformation, many are unaware of their own contribution to helping Ethereum achieve total OFAC compliance.

One of the most significant factors undermining Ethereum's credibility is the use of censoring MEV relays by crypto ecosystems and exchanges. Miner extractable value (MEV) relays act as a bridge between block producers and block builders, and are used by major cryptocurrency exchanges such as Binance, Celsius Network, and Coinbase, to name a few.

Users who stake Ether on platforms that run censoring MEV relays on their validators directly contribute to Ethereum censorship. By using a non-censoring MEV-boost relay, crypto platforms can help to improve the situation.

Some popular MEV-boost relays that do not promote censorship for validators and relay operators are Ultra Sound Money, Agnostic Boost, Aestus, BloXroute Max Profit, BloxRoute Ethical, Manifold, and Relayooor.

At the time of writing, 67 of the last 100 Ethereum blocks were found to be in compliance with OFAC.

As investors, it is crucial to recognize that protocol-level censorship is a deterrent to crypto's goal of enabling open and inclusive finance. As a result, it is vital for both investors and service providers to choose non-censoring MEV boost relays.

Furthermore, the Ethereum ecosystem recently witnessed two dormant addresses reactivate after four years to transfer 22,982 ETH.

The ETH transfers are traceable back to the trading platforms Genesis and Poloniex, where the unknown whales transferred 13,103.99 ETH and 9,878 ETH, respectively.

Read also: Can Dogeliens, the New Meme Coin, Follow Dogecoin’s Success?

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