Recent comments by Danny Ryan, often referred to as the beacon chain’s mastermind, have sent ripples through the Ethereum community. In a candid interview, Ryan called out Lido and similar protocols, claiming they pose a systemic threat to Ethereum’s foundational values and its core consensus mechanisms.

The crux of Ryan’s concern revolves around Lido’s growth. Lido has now amassed nearly one-third of all ETH staked. In the world of consensus mechanisms, surpassing thresholds like one-third or half gives a participant significant influence, potentially enabling them to disrupt consensus in fatal ways. This doesn’t just signify a potential centralization risk; it could erode Ethereum’s value proposition as a decentralized platform.

Why Lido Is A “Systemic Threat” To Ethereum

Ryan shared …