Buterin Proposes Native DVT to Reduce Staking Centralization and Boost Ethereum Security

Ethereum co‑founder Vitalik Buterin proposed integrating native Distributed Validator Technology (DVT) into the Ethereum protocol to improve network security and reduce staking centralization. The design lets a single validator identity register up to 16 independent keys that collectively perform duties (block proposals and attestations) once a configurable signature threshold is met. Validators must hold multiples of the minimum stake to form such “validator groups.” Buterin says native DVT reduces single‑node failure risk, supports existing slashing protections when thresholds are set safely, and would be simpler and more adoptable than current off‑chain DVT implementations (e.g., SSV Network) that require extra coordination. The change should add only modest overhead — nodes run standard clients and block production may incur a single extra delay round — and is compatible with various signature schemes. The proposal is at an early discussion stage and requires extensive technical review, testing and community consensus before adoption. For traders, the proposal targets long‑term resilience and decentralization metrics: if adopted, it could lower staking concentration among large providers, reduce systemic protocol risk, and increase market confidence in ETH staking — factors that can materially affect ETH’s risk premium over time.