Blockchain Creator Ethereum Vitalik Buterin He compared validators fleeing the network to deserters who abandoned military service.
In September, the amount of Ethereum to be unfrozen will be more than tripled to a record high of 2,67 million, worth $12,26 billion at the current exchange rate. This increased the waiting period for the coins to unlock to 45 days, and the head of the department DeFi Michael Marcantonio, CEO of the cryptocurrency company Galaxy Digital, considered this a warning sign and cited Ethereum’s competitor as an example. Solana (SOL), on whose blockchain digital assets can be unlocked in approximately two days.
Increase in the number of Ethereums waiting to be unfrozen (blue line)
However, Buterin sees an advantage in the existing ETH unlocking model, which allows the waiting time for coins to be unlocked to vary depending on the length of the validator queue: the longer the queue, the longer the wait.
They [validators trying to unlock Ethereum] are more like soldiers who decided to quit their jobs. The army would fall apart if soldiers left whenever they wanted. The current state of affairs with the queue for unfreezing coins is not optimal, but reducing the waiting time will make it easier. Block less reliable from the point of view of the network node operator, who doesn’t turn it on very often,” Vitalik wrote.
One of the positive consequences of extending the Ethereum unlock period is greater stability in the ETH price. If validators were to withdraw 2,67 million digital assets at once and sell them, the ETH price would plummet by tens of percent. A gradual unlocking of the cryptocurrency creates slight downward pressure on the coin’s price.