Ethereum Continues To Decline Stake In Lido, Reducing Centralization Concerns
Ethereum has consistently been reducing its stake in the Lido platform. It has been a pattern, and the aim of Ethereum is to reduce the centralization of Ethereum - thereby raising the possibilities that Ethereum will not be regarded or categorized as a security in some time to come.
Ethereum's stake in Lido as of last year was about one third. But Ethereum has since been declining its stake in Lido, to about one fourth in present time.
And this is because the Securities and Exchange Commission (SEC) has indicated that - how decentralized a network is, plays a huge role in determining whether to categorise it as a security or a digital token.
Professionals who work in the Securities and Exchange Commission (SEC) have in the past made mention of the fact that digital tokens that are very well decentralized are not categorized as securities.