The staking of ETH on the most prominent exchanges is a contributing factor to Ethereum's censorship.
Being in compliance with federal sanctions has a detrimental effect on the global reach of the vast majority of cryptocurrency ecosystems. When it comes to Ethereum, however, investors hold a significant amount of power, which allows them to decide the degree of compliance obeyed by the ecosystem.
A little under sixty percent of all Ethereum blocks created after the merge are in compliance with the sanctions imposed by the Office of Foreign Assets Control of the United States (OFAC). Despite the fact that the cryptocurrency community is united in its opposition to this change, many participants are unaware of the role they have played in bringing Ethereum closer to full OFAC compliance.
The utilization of censoring Miner extractable value (MEV) relays by cryptocurrency ecosystems and exchanges is one of the most significant factors that undermines the neutrality and credibility of Ethereum. MEV relays act as a mediator between block producers and block builders. These relays are used by prominent crypto players such as Binance, Celsius Network, Coinbase, Kraken, and Cream Finance, to name just a few examples. Directly contributing to the censorship of Ethereum are users who stake their coins on Etheron platforms (like the one shown in the previous paragraph) that also run censoring MEV relays on their validators. By implementing a non-censoring MEV-boost relay, crypto platforms can contribute to the effort to rectify the situation.
At the time this article was written, 67 of the most recent 100 blocks of Ethereum were found to be in compliance with OFAC.
It is essential for investors to have a solid understanding of the fact that censorship at the protocol level is a barrier to the realization of the cryptocurrency industry's vision of democratizing the financial system. Therefore, it is essential for investors as well as service providers to go with non-censoring MEV-boost relays. The ecosystem surrounding Ethereum was recently witness to the reawakening of two dormant addresses after a period of four years, resulting in the transfer of 22,982 ETH.
The ETH transactions in question can be traced back to the trading platforms Genesis and Poloniex, where the unidentified whales transferred a total of 13,103.99 ETH and 9,878 ETH, respectively.
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