Why Diva Staking DAO voted to Self-Limit to 22% staking share

Diva Staking
3 min readOct 20, 2023


The staking ecosystem is rapidly evolving, with Diva Staking providing the best combination of:

  • Scalability: Providing the best capacity for trustless Liquid Staking.
  • Trust-minimization: Relying purely on cryptography & economics.
  • Participation: Allowing 5x more Operators to join from only 1 ETH.

This means that it’s not outside the realm of possibility that Diva will become a “killer app” in the staking ecosystem.

With the increasing centralization of liquid staking, the DAO has recently decided that Diva will self-limit to prevent centralization risks.

In a recent interview, Danny Ryan highlighted key thresholds and their corresponding implications for Liquid Staking Derivatives (LSTs):

  • Above 33% — Risk of preventing finalization.
  • Above 50% — Potential for censorship.
  • Above 66% — Likelihood of achieving finalization.
Danny Ryan on how Lido dominance is a systemic risk to Ethereum!

Consequently, acknowledging the centralizing trends within the liquid staking market, a proactive approach is necessary to address the issue, mitigating those concerns.

This aligns with the perspectives presented by Anthony Sassano & Eric Conoar, and others in the field.

Superphiz’s rationale for limiting to 22% are:

  • It requires at least four parties to affect finalization.
  • We can lose one provider at 22% and not miss a step on the network.
  • It is capture-resistant so third parties are comfortable building on the network.

A few other protocols have also committed to self-limiting:

Diva’s commitment to decentralizing Ethereum Liquid Staking

The DAO resolution for Diva Staking reads:

Diva Staking commits to maintaining its stake within 22% of the total ETH deposited on the beacon chain. To achieve this, Diva will implement necessary measures to restrict further accumulation beyond the specified threshold. This could involve temporarily ceasing the creation of new validators while continuing the issuance of divETH tokens.

Voting timeline [DIP 02] — Commitment to Self-Limiting Diva to 22%

By reducing the staking APR for divETH, an economic disincentive is created, encouraging diversification among liquid staking providers. This strategic move not only safeguards against breaching the 22% threshold but also facilitates seamless integration with other protocols, ensuring enhanced reliability and operational stability.

Learn more about the governance process for [DIP 02] Self-Limiting Diva to 22%, and other DAO proposals now in Tally.

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Diva Staking

Diva is an Ethereum Liquid Staking protocol powered by Distributed Validation Technology. News & articles written independently by the Staking Foundation