ETH staking on major exchanges contributes to Ethereum censorship: Data

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For most crypto ecosystems, compliance with federal sanctions negatively impacts its global reach. However, when it comes to Ethereum, investors have significant power to decide how compliant the ecosystem is.

Nearly 60% of all post-merger Ethereum blocks are compliant with US sanctions imposed by the Office of Foreign Assets Control (OFAC). While the crypto community opposes this transformation, many do not realize their own contribution to helping Ethereum achieve full OFAC compliance.

One of the major factors undermining Ethereum’s credible neutrality is the use of censorship MEV relays by crypto ecosystems and exchanges. Miner-Extractable Value (MEV) relays work as a mediator between block producers and block builders, which are used by prominent crypto players, such as Binance, Celsius Network, Coinbase, Kraken and Cream Finance, to name a few.

Ranking of the best Ethereum censorship violators. Source: MEV Watch

Users staking Ether (ETH) on platforms (as noted above) that run censorship MEV relays on their validators contribute directly to Ethereum censorship. Crypto platforms can help remedy the situation by adopting an uncensored MEV-boost relay.

For validators and relay operators, some of the popular MEV-boost relays that do not favor censorship include Ultra Sound Money, Agnostic Boost, Aestus, BloXroute Max Profit, BloxRoute Ethical, Manifold, and Relayooor.

OFAC compliance data for the last 100 Ethereum blocks. Source: MEV Watch

At the time of writing, 67 of the last 100 Ethereum blocks have been found applying OFAC compliance.

As investors, it is important to understand that protocol-level censorship is a deterrent to cryptos goal of unleashing open and inclusive finance. Therefore, it becomes important for investors and service providers to opt for uncensored MEV-boost relays.

Related: BNB Chain Now Has More Unique Addresses Than Ethereum, Says Developer

The Ethereum ecosystem recently saw two dormant addresses wake up after four years to transfer 22,982 ETH.

#PeckShieldAlert 2 dormant addresses transferred $22,982 ETH (~27.2 million) to 2 new addresses, their last move was in October 2018 (1,535 days ago). These $ETH are from Genesis and Poloniex pic.twitter.com/MXKpLnypif

— PeckShieldAlert (@PeckShieldAlert) December 19, 2022

The ETH transfers in question can be traced back to the Genesis and Poloniex trading platforms where the unknown whales transferred 13,103.99 ETH and 9,878 ETH respectively.

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