Vitalik Buterin, one of the co-founders of Ethereum, introduced a new staking approach that aims to simultaneously strengthen the security and decentralization of the network. In the technical article he wrote on the Ethereum Research forum, he suggested that the model called “native DVT” (native distributed validator technology) be integrated directly into the protocol. While the proposal aims to enable validators to work without being dependent on a single node, it also aims to increase fault tolerance. The controversy began at a time when Ethereum staking rates were reaching historical highs.
What is Local DVT and How Does It Work?
Buterin’s proposal allows validators to register multiple independent keys under a single identity. These keys, which represent the same validator, can only validate critical transactions such as proposing or confirming blocks when a certain threshold number of signatures come together. Thus, a technical malfunction or security breach in a single node does not cause the validator to be completely disabled.
The model requires the validator to have at least multiples of the minimum staking amount and allows a maximum of 16 keys to be defined. Each key works like a standard Ethereum node but acts as a single validator identity within the Blockchain. According to Buterin, the structure can be implemented independently of signature schemes, reducing over-reliance on cryptographic assumptions in the long run.
From a technical perspective, the system’s load on the network is kept limited. While there is only an additional round of delay in block production, no additional loss of time is foreseen in the approval processes. If the threshold values are set correctly, existing slashing protections remain valid.
Impact of Native DVT on Decentralization and Staking Ecosystem
Buterin described the local DVT approach not only as a technical security improvement, but also as a strategic tool for measurable decentralization. A more manageable and fault-tolerant staking structure could make it easier for individual users and institutions to join the network without transferring their funds to large service providers. This may contribute to a more even distribution of the validator set.
The proposal is also consistent with the fact that DVT is already being used at the infrastructure level. In August 2025, Kraken deployed SSV Network-based distributed validator technology in Ethereum staking operations. However, Buterin is of the opinion that such solutions carry operational complexity and are difficult to become widespread unless supported at the protocol level.
The proposal, which is still in its early stages, requires extensive technical review and consensus within the Ethereum community. The timing of the proposal is quite remarkable. Ethereum staking rate reached an all-time high, approaching 30 percent, and network security discussions gained momentum again.
