The first downside is, after all, that there’s no precise slashing rule on Ethereum. Any imposition of 1 – taking away staked tokens from validators – can be contrived and arbitrary, successfully unconstitutional. Now, you may say, as a younger protocol, Ethereum’s governance must be malleable, however the stakes are far too excessive for that now. Ethereum is a protocol that manages a whole lot of billions of {dollars}’ price of worth day by day. The very defensible DAO rollback (in 2016, following a $50 million hack) precipitated a mighty hangover that persuaded many who Ethereum was a hopelessly subjective mess, de facto managed by a small group making issues up on the fly.