TLDR
- Vitalik Buterin sold 950 ETH worth $2.28 million in recent weeks
- Buterin clarified the sale was triggered by an automatic swap order set on August 29
- Starting 2025, Buterin will only publicly mention Layer 2 solutions at “Stage 1” or higher
- “Stage 1” requires 75% council threshold to override proof systems
- Many ZK rollup teams aim to reach Stage 1 by year-end
Vitalik Buterin, the co-founder of Ethereum, has recently made headlines for his cryptocurrency sales and new standards for Layer 2 (L2) projects.
These developments have sparked discussions within the crypto community about the future of Ethereum and its scaling solutions.
In recent weeks, a crypto wallet associated with Buterin, known as vitalik.eth, sold 950 ETH for approximately $2.28 million. This sale, along with additional ETH liquidations by the Ethereum Foundation and Metalpha group, raised concerns about a potential drop in ETH prices.
vitalik.eth(@VitalikButerin) deposited the 2.27M $USDC obtained from selling 950 $ETH in the past 2 weeks into #Aave 3 hours ago.#Vitalik also deposited 2,851 $ETH($6.73M) into #Aave.https://t.co/UEX85tYFwW pic.twitter.com/7SVFHjnAOT
— Lookonchain (@lookonchain) September 12, 2024
Addressing these concerns, Buterin explained that his recent ETH sell-off was triggered by an automatic swap order set up on August 29. He clarified that the sale, conducted by a bio-defense group he funds, was the last of its kind.
This explanation aimed to alleviate worries within the Ethereum community about large-scale liquidations.
Buterin also announced stricter criteria for publicly mentioning Layer 2 solutions. Starting in 2025, he will only acknowledge L2 projects that have reached “Stage 1” or higher in their development. This decision applies universally, regardless of personal investments or connections to projects.
Stage 1 Requirements
For a project to be considered Stage 1, it must meet specific criteria:
- Have an active fraud-proof or validity-proof scheme in place
- Implement a multi-signature-based override mechanism or “security council”
- Require a minimum of 6 out of 8 signatures for overrides
- Include a quorum-blocking group external to the rollup organization
- Implement a seven-day delay window for upgrades
Buterin emphasized that a 75% council threshold is essential to override the proof system, and at least 26% of the council should be independent of the rollup team. He expressed confidence in the transition from multisig governance to cryptographic trust, noting that multisigs he’s involved with haven’t experienced failures in years.
I take this seriously. Starting next year, I plan to only publicly mention (in blogs, talks, etc) L2s that are stage 1+, with *maybe a short grace period* for new genuinely interesting projects.
It doesn't matter if I invested, or if you're my friend; stage 1 or bust.
Multiple… pic.twitter.com/4cGxgsfmUc
— vitalik.eth (@VitalikButerin) September 12, 2024
Progress and Expectations
Several Zero-Knowledge (ZK) rollup teams are reportedly working to achieve Stage 1 by the end of this year. Buterin showed enthusiasm for this progress but stressed the importance of maintaining security measures.
He cautioned against removing “training wheels” until proof systems are fully reliable.
