ETH staking on top exchanges contributes to Ethereum censorship
One of the biggest factors harming Ethereum's credible neutrality is the use of censoring MEV relays by crypto ecosystems and exchanges.
Crypto ecosystems being compliant with federal sanctions harm its global reach when it comes to Ethereum investors have significant power to decide the degree of compliance the ecosystem obeys.
Ethereum blocks comply with the United States sanctions put forth by the office of foreign assets control (OEAC) while the crypto community stands against this transformation many fail to realize their contribution to helping Ethereum attain total OFAC compliance.
One of the biggest factors harming Ethereum's credible neutrality is the use of censoring MEV relays by crypto ecosystems and exchange Miner Extractable value (MEV) relays by crypto ecosystems and exchanges. Miner extractable value (MEV) relays work as a mediator between block producers and block builders which are being used by prominent crypto players like Binance, Celsius Network, Coinbase, Kraken, and Cream Finance to name a few.
Users staking Ether on platforms that run censoring MEV relays on their validators are directly contributing to the censoring of MEV boost relays.
Validators and relay operators some of the popular MEV boost relays that didn't promote censorship include Ultra Sound Money, Agnostic boost, Aestus, Bloxroute, Max Profit, BloxRoute Ethical, Manifold, and Relayer.
Currently, 67 of the last 100 Ethereum blocks were found enforcing OFAC compliance.
As investors, it is mandatory to understand that protocol-level censorship is deterrent to crypto's goal of unleashing open and inclusive finance it becomes important for both investors and service providers to opt for non-censoring MEV boost relays.
The Ethereum ecosystem recently witnessed two dormant addresses wake up after four years to transfer 22,982 ETH.
#PeckShieldAlert 2 Dormant addresses transferred 22,982 $ETH (~27.2M) to 2 fresh addresses, their last movement was October 2018 (1,535 days ago).— PeckShieldAlert (@PeckShieldAlert) December 19, 2022
These $ETH originated from Genesis and Poloniex pic.twitter.com/MXKpLnypif
The ETH transfers in question can be traced back to trading platforms Genesis and Poloniex where the unknown whales transferred 13,103.99 ETH and 9.878 ETH respectively.
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